Local Stores See Benefit of Wage Increase
By: Rebecca Jeffrey
Updated: February 13, 2013
What used to be a good pay raise could soon be minimum wage.
"It sounds like a good idea, it seems like okay why wouldn't we want to pay people enough to live on but, of course every dollar that is paid is a dollar of cost to that business," Kathy Deck, University of Arkansas Economist said.
Businesses like Nightbird Books in Fayetteville, who would feel the effects of the forced raise.
"Definitely the first couple of pay roles would be tighter," Lisa Sharp, Owner of Nightbird Books said.
Only 5 percent of working Americans are paid minimum wage. But in Arkansas, that number is 7 percent.
"The effect might be a little bit more dramatic her," Deck said.
It's shops like Sharp's that will see the hit to their bottom line.
"A small business is often who's going to feel this the hardest," Deck said.
A problem Sharp already faces.
"Really the main reason that I don't pay much above minimum wage right now is because we don't have the sales to cover it."
Sharp admits, the wage increase could eventually do her books some good.
"If people are making more money, there's more money generating in the community to buy things at my shop and it should sort itself out, it did last time."
The last wage increase was in 2009.
Other local businesses like Collier's Drug Store said they already pay their employees more than 9 dollars and expect many other stores in NWA do too. So the possible pay raise may not hit the local market as intensely as the rest of the natural state.
"It sounds like a good idea, it seems like okay why wouldn't we want to pay people enough to live on but, of course every dollar that is paid is a dollar of cost to that business," Kathy Deck, University of Arkansas Economist said.
Businesses like Nightbird Books in Fayetteville, who would feel the effects of the forced raise.
"Definitely the first couple of pay roles would be tighter," Lisa Sharp, Owner of Nightbird Books said.
Only 5 percent of working Americans are paid minimum wage. But in Arkansas, that number is 7 percent.
"The effect might be a little bit more dramatic her," Deck said.
It's shops like Sharp's that will see the hit to their bottom line.
"A small business is often who's going to feel this the hardest," Deck said.
A problem Sharp already faces.
"Really the main reason that I don't pay much above minimum wage right now is because we don't have the sales to cover it."
Sharp admits, the wage increase could eventually do her books some good.
"If people are making more money, there's more money generating in the community to buy things at my shop and it should sort itself out, it did last time."
The last wage increase was in 2009.
Other local businesses like Collier's Drug Store said they already pay their employees more than 9 dollars and expect many other stores in NWA do too. So the possible pay raise may not hit the local market as intensely as the rest of the natural state.
