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The Impact of Minimum Wage Increasing
06/11/09 6:33 pm   |   reporter: Margaret McHugh   producer: Amy Foster
ABC 13 - The Impact of Minimum Wage Increasing
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Lynchburg, VA - The "minimum" in minimum wage is about to change. Effective July 24th- it goes from $6.55 an hour to $7.25. That's seventy cents more an hour- $1.45 more than just two years ago.

While most agree that any extra money in people's pockets is a good thing, it may also mean the price of everyday goods going up.
It isn't just the lunch rush at Phila Deli that has owner Dennis Wobensmith occupied.

"I can see changes in people's eating habits, they're eating lower cost items on the menu and they are sharing more platters, they are drinking more water," Wobensmith said.

Now he's readying for more changes, with some of his staff seeing a big bump in pay.

Waitress Dayna Kepler said, "I have a four-year-old. I definitely think that extra dollar will definitely help out."

"I mean the single moms and the factory workers need the money, and it's just got to be passed along," Wobensmith said.

To recover the costs, Wobensmith is scrutinizing his menu- looking for ways to save, without skimping on taste and quality.

"I've got to look at the cost of every single ingredient, seeing if I can mix and match things a little bit better," Wobensmith said.

And if that doesn't work, you may notice a hike in prices- everywhere even for household staples. "It's just got to be passed along and it seems it's passed along to the taxpayers," Wobensmith said.

Which may affect the very people it's meant to help. "I think it'll be a domino effect and the price of things will go up," Kepler said.

The minimum wage increase is the last of a series that have taken effect each July for the past three years.

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