Minimum wage hike's effect on small businesses

Minimum wage hike's effect on small businesses

Credit: Getty Images

WASHINGTON, DC - JANUARY 28: U.S. President Barack Obama delivers his State of the Union speech on Capitol Hill on January 28, 2014 in Washington, DC. In his fifth State of the Union address, Obama is expected to emphasize on healthcare, economic fairness and new initiatives designed to stimulate the U.S. economy with bipartisan cooperation. (Photo by Larry Downing-Pool/Getty Images)

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by Jeremy Baker / KENS 5

kvue.com

Posted on January 29, 2014 at 9:07 PM

Updated Wednesday, Jan 29 at 10:43 PM

In Tuesday night's State Of The Union Address, President Barack Obama announced a minimum wage hike for all contracted federal employees to $10.10 starting in 2015. 

The President says it is part of a larger goal to spread the wealth. 

Ray Edinger who owns San Antonio Cartridge World doesn't think that will happen. 

"If you look at defense industries or other industries a large portion of their interest is with the federal government.  They don't have a whole lot of employees making minimum wage,"  Edinger said. 

But what would happen if the federal minimum wage were to be hiked up to that same level for everybody working in this country?  

"It's kind of like there's an automatic increase in wages, not just at the starting point or at the minimum wage point, but upwards from there," Edinger said. "I want to be able to help that person or that employee to achieve better things in life rather than say the federal minimum wage is $10 and your wage is $10."

But regardless of who gets wage raises, the money has to come from somewhere, likely the everyday consumer.

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