Missourians Could See Some Extra Cash Lining Their Pockets

A petition campaign has rounded up enough support to place a minimum wage initiative on November`s ballot. If passed, minimum wage in Missouri would go up $1.35 on January first. But, the silver lining may not be what it seems. Current minimum wage, dictated by federal law, is $5.15. Missourians could vote to hike the rate to $6.50, but it may not end there. Brynn Harshman has owned Elsewhere Clothing for about a year. She says the potential rate increase is simply a sign of the times to keep up with the cost of living. Although her employees make above minimum wage, she says she can`t afford to increase their pay at the same rate. The same goes for McDonald`s employees. Owner Dave Shinneman worries about the increase because it doesn`t have a cap, meaning $6.50 next year and maybe even more every consecutive year. Shinneman says it`s not good for business, and it`s not good for consumers. Both Harshman and Shinneman agree. If forced to pay employees more, consumers could feel a pinch in their pockets. "Then we`d have to raise our prices because we have to pay our employees more, so it`s a never-ending circle," Harshman says. "I don`t think the $6.50 is frightening--the indexing is. As it goes up without reflection on market forces, that`s the part that can be scary," Shinneman says. Political group Save our State`s Jobs fears Missouri won`t be able to compete for business with surrounding states, whose minimum wage is less than the proposed $6.50. Shinneman agrees, fearing in the end, a minimum wage increase could result in a decrease of Missouri`s work force. On the other side, Give Missouri a Raise, a group in favor of the increase, says it`s been nearly a decade since the $5.15 wage was instated. Since then, the group says the cost of living has gone up considerably.