What Would Actually Happen If The Minimum Wage Is Raised?

GREENSBORO, N.C. -- Ask anyone if they want more more money -- and I'd be shocked if you came across someone who would say NO.

Right now -- North Carolina's minimum wage is $7.25

Well lower than Walmart's new $11 minimum wage.

Boosting the state's pay sounds great, but raising wages directly impacts our economy -- and experts say the effect can depend on how much of an increase it is.

"It is one thing to have a fairly small increase in percentage terms as opposed to say -- a doubling all at once. The more gradual increase allows businesses more time to adjust," said Dr. Peter Summers, a Economics Professor at High Point University.

Walmart is the nations largest private employer, and so this one dollar raise will affect many people in our state and throughout the country. 

At the start of the year several states raised their minimum wage, but North Carolina was *not one of them.

Less than a year ago, many people protested around the country demanding 15 dollars an hour.

Those protests happened here in Greensboro, too.

Double pay would change a lot of peoples' lives, but doubling the minimum wage could cause employers to lay off employees.

Dr. Peter Summers, an economics professor with High Point University, says normally if you look at the numbers, a small minimum wage increase has very little effect whether or not people keep their jobs.

"The employment effects are very small, and in some cases they have not seen any really significant job loss at all," said Summers.

Summers also says that somehow, someway -- the money has to come from somewhere.

In some cases, the cost can get passed on to you, or companies might lay people off to save extra cash, but since there are so many factors, you can't automatically assume that an increase in the minimum wage will impact your wallet.

Copyright 2017 WFMY


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