CORPUS CHRISTI, Texas — As part of President Joe Biden's pandemic-economic relief plan, he's proposing an increase in the current federal minimum wage.
"Raising the minimum wage to $15 an hour sounds like a lot right, because the current level is at $7.25 an hour," said Jim Lee, an economics professor at the Texas A&M University-Corpus Christi
Lee said the increase in minimum wage was bound to happen soon because the number hadn't moved in over 10 years.
"The $7.25 that was implemented back in 2009 actually has lost its real value to purchase food and other goods by 20-percent at least," said Lee.
He said people who work full-time and make minimum wage are bringing in less than $31,000 annually. They live below the poverty level.
"Higher wages on one hand is good, on the other hand don't ever expect you're going to get 100-percent of the bump in income," said Lee as he adds the increase presents several challenges.
When there's an increase in wages, there's an increase in the cost of living. Lee said the motive behind the plan was to help lift the economy, but he fears it may hurt instead by costing businesses more.
"Every thing will increase substantially," said Joel Pike, a local business owner.
Pike said small businesses continued to struggle amid the pandemic, therefore, the increase would cause even more of a burden.
"Do I think it needs to happen, yes I do. Do I think it's going to hurt a lot of people who are already struggling, yes I do," said Pike.
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