Many Ohio workers appreciate the new minimum wage increase of 2013, which is expected to make a difference in both Ohio’s and Athens’ economies.
On Jan. 1, minimum wage in Ohio jumped 15 cents per hour, reaching $7.85 per hour for minimum wage workers. In 2011, minimum wage increased 10 cents and in 2012, minimum wage increased 30 cents.
Nine other states experienced a minimum wage increase ranging from an additional 10 to 35 cents per hour, directly affecting approximately 855,000 workers, according to research conducted by David Cooper, economic analyst of Economic Policy Institute, a non-profit, nonpartisan economic “think tank.”
Minimum wage increases in correlation to the inflation rates, which have remained fairly low in the past few years, David said.
While the new increase might not seem very significant, it could make a big difference in some cases, whether good or bad.
Nate Hayes, general manager at Whit’s Frozen Custard on Court Street, said his employees already make more than minimum wage; therefore, the increase will not affect them.
Other small businesses, however, such as Little Professor Book Center on Court Street, will have to make cuts to meet expenses.
Rich Purdy, owner of the bookstore, said that his eight-person staff will take a hit, though it is unclear how significant it will be at this point.
“When you’re a small business, (pay increase) is hard,” Purdy said.
In addition to hardships that employers will face, workers might have a difficult time coping with their pay as well, even with the increase.
“Any increase will help, (but) I would think it would be very hard to survive on minimum wage,” said Javon Kittle Cooper, Athens County treasurer.
According to David, many people mistake minimum wage workers as teenagers looking for extra spending money. However, he has supported Javon’s statement regarding families surviving on minimum wage.
“The vast majority of minimum wage workers are at least 20 years old,” David said.
He added that many of these adults are married and have children, while only making approximately $40,000 per year. He also pointed out that many minimum wage workers are women.
Families can be affected both by a lack of unemployment and a slightly greater income, but some argue that the increase will also be beneficial to those on food stamps.
Amy Hanauer, executive director of Policy Matters Ohio, a non-profit, nonpartisan research organization dedicated to alleviating economic stress, said a greater income should mean a lesser need for food stamps statewide.
Hanauer added that the minimum wage increase would also stimulate Ohio’s economy.
Studies conducted in the past few years have found that states with higher minimum wage show economic growth.
Higher pay for employees has led to “(the) transfer (of) income from business owners, increase in business activity (and) further economic growth,” David said.
He specified that the more money people have to spend, the more it will benefit businesses in the area, therefore boosting the local and state economy.
“In Athens County, the minimum wage increase should be a big help to a lot of families,” said Nick Claussen, spokesman for Athens County Jobs and Family Services.
“I know a lot of families work and receive benefits,” he said. “(We are) glad to see families get a little more assistance.”
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