Minimum Thinking: A Hike for Wages?: Target Corporation (TGT) and More

The pizza chain Papa John’s Int’l, Inc. (NASDAQ:PZZA) previously announced prices would most likely be raised (for example, a large pizza might cost up to 14 cents more) due to Obamacare alone. If the minimum wage is increased it is probable that prices would go up even more unless other measures are taken such as reducing hiring or hours worked. In any event growth will be impacted.

Although it isn’t the end of the world my thought is that it would be best if the minimum wage is not increased. Business outlooks and the bottom line in some cases are already being affected by Obamacare and the payroll tax increase. Adding a third headwind at this point is not a very good idea.

The article Minimum Thinking: A Hike for Wages? originally appeared on Fool.com and is written by Mark Morelli.

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