Some Fear Minimum Wage Increase Could Backfire

Published 01/30 2014 08:22AM

Updated 01/30 2014 08:25AM

As President Obama pushes to increase the minimum wage for all Americans, some fear that the plan could backfire and have a negative impact on small businesses.

Obama already announced that he will sign an executive order to increase minimum wage for new federal contracts.

Supporters say a wage increase for all workers would put more cash in.

Americans pockets, but critics say increasing the minimum wage is not the answer. Ed Cormany, of   Ed's Car Care Center, says if the minimum wage were to spike over $10, it would have an adverse effect on his business.

“It makes more sense to hire highly skilled workers rather than pay a minimum wage salary.  It would make it almost impossible for a young person to get their foot in the door,” said Cormany. 

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