By Tim Gallen
Phoenix Business Journal, July 28, 2012
As Washington begins to debate new legislation that would bump the federal minimum wage to $9.80 an hour within the next few years, business leaders in Arizona are weighing in on the potential benefits and negatives such an increase would have on businesses and the economy. ...
Even though an increase in the federal minimum wage would not directly affect his organization, Apollo Group’s founder and Executive Chairman John Sperling likens an increased minimum wage to the old adage that “a rising tide raises all boats.”
“It increases demand,” he said. “It’s not very difficult to see what its impacts would be.”
Sperling admitted a minimum wage hike would not affect those who work for Apollo Group, as most employees earn well above the minimum. But an increase would help those students of Apollo’s online universities, such as University of Phoenix, who may be working part-time jobs to pay for schooling.
Overall, Sperling believes an increase to the minimum wage would benefit the entire economy because with more money in people’s pockets, demand for goods and services will go up.
“Demand increases, (businesses will) sell more. There will be a greater demand for their product,” he said. “They’ll come off ahead rather than behind.”
Arizona’s minimum wage stands at $7.65 an hour, which is 40 cents higher than the current federal minimum wage of $7.25. ...
Read full story:
http://www.bizjournals.com/phoenix/blog/business/2012/07/arizona-business-leaders-weigh-in-on.html?page=all
Copyright 2012 American City Business Journals