New bill proposal would raise minimum wage to $8.25 in California
People: Raise in wage could cost some jobs
Last Updated: 260 days ago
BAKERSFIELD, Calif. - A bill in the statehouse aims to raise the minimum wage in California, but some people have expressed worry that could cost a lot of people their jobs.
State democrats introduced a bill in Sacramento to raise the states minimum wage, but a small business advocacy group said the plan could cost California 68,000 jobs over the next ten years.
The financial advisors at Moneywise said business owners could use layoffs as a way to absorb the increase.
"So in order to offset that, what's he got to do? He's gotta raise the price of the product he is selling or start laying off some of these workers," said Moneywise Financial Advisor Garro Ellis.
The experts at Moneywise said that if the minimum wage is raised it likely will cost some people their jobs, but they also said it will create inflation in the California economy.
The bill would raise California's minimum wage to $8.25 an hour in 2014, then add 50 cent increases in 2015 and 2016. After that, the minimum wage would be tied to inflation.
"I think that is the better way to approach it and just know every year businesses can calculate if it's here and the cost of living adjustment or inflation is one percent then we gotta raise the minimum wage by one percent then it can be more calculated for business," said Ellis.
But those against the plan said it will cost the state almost six billion dollars in lost production over the next ten years.
Local experts lifting people out of poverty is not as easy as raising the minimum wage.
"If you are a full time worker, you shouldn't be in poverty, so what's it gonna take to get you there? It's gonna take controlling inflation saving your money budgeting," said Ellis.
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