The Not-So-Sweet Impact of a Minimum Wage Increase

Jan 30, 2014 - 12:00pm

David Paul Morris Cupcake.JPG

David Paul Morris for Bloomberg

U.S. Chamber Deputy Chief Economist J.D. Foster recently wrote how raising the minimum wage will result in lost jobs. But now it appears that raising the minimum wage could also increase the cost of cupcakes.

Jody Manor, owner of Bittersweet Café and the new Waterfront Market and Café in Alexandria, Virginia was on FoxBusiness News to talk about President Obama’s State of the Union.

Manor, who notes that he started his restaurant career as a dishwasher when he was 14 years old, said the president’s plan to increase the minimum wage to $10.10 an hour would mean he’d have to “raise prices to pay those wages.”

Manor also said the uncertainty of the past couple of years is hurting small businesses like his. “If the government would do their job, that would help a lot,” he said, referring to the government shutdown of last year.

The lesson here: enjoy those $2.75 Bittersweet cupcakes while you can. 


Manor on FoxBusiness

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About the Author

About the Author

Sheryll Poe is a former senior writer at the U.S. Chamber, who covered public policies affecting businesses including the three "T's" - transportation, trade and taxes.