Update on Ohio's mimimum wage increase....
As expected, prices are rising. There are approximately 300,000 minimum wage workers in the State of Ohio. This law also mandates annual cost-of-living increases, so one may expect a continual price rise every year.
Minimum wage up - prices, too
"BY ALEXANDER COOLIDGE Cincinnati Enquirer 03/31/07
Eric Franke is weighing his options.
In light of Ohio's minimum-wage increase, the co-owner of 18 Subway sandwich shops in the region has two equally unappealing choices: He can raise prices, or he can cut staff.
Franke estimates the new Ohio law, which raised the minimum wage from $5.15 to $6.85 an hour, will drive up annual expenses by $5,000 per store.
Some restaurants might try to absorb the increase with lower staffing, but that's a slippery slope:
Longer waits in line and less-spiffy stores could alienate customers.
Yet if Franke increases pay, he'll have to increase prices to compensate.
Before the increase, he could offer starting employees $6.25 an hour "and be competitive."
While other retailers and service companies say they'll be forced to charge more because of the higher minimum wage, economists say the impact might be most visible to consumers at their favorite casual or fast-food restaurants - places they visit regularly and repeatedly buy the same items.
"We adjust prices every couple of years, but it's definitely mandated now with the minimum-wage increase," Franke said."...
http://news.enquirer.com/apps/pbcs.dll/art...03310334/-1/all