(ST. JOSEPH, Mo.) One economics professor at Missouri Western State University weighed in on some of the outcomes that raising the minimum wage will have on the economy.
On Tuesday, Proposition B was passed by voters in Missouri. The move will gradually raise Missouri's minimum wage from the current $7.85 to $12 by 2023.
According to MWSU professor Dr. Patrick McMurry, the change in minimum wage will have minimal impacts on the overall economy. Dr. McMurry sites the fact that only one percent of the national labor force makes the minimum wage which leaves very little impact to the overall economy.
McMurry does say, however, that a few industries could see larger impacts and those are the fast food and hospitality industries.
"Increasing the minimum wage there, be careful what you wish for," McMurry said. "Right now, labor costs in fast food are about 30 percent of the costs so if you start jacking those up, I promise you they are going to automate."
McMurry believes that an increase in automated ordering kiosks could be on the rise at fast food restaurants thanks to an increase in minimum wage.
Missouri's minimum wage will see its first increase in 2019 to $8.60 and will increase gradually until 2023.
- Economics professor weighs in a minimum wage hike
- Minimum Wage Increase Takes Effect
- Minimum wage hike takes effect with the new year
- City increases pay for minimum wage workers
- Community Debates Petition to Increase Missouri's Minimum Wage
- Amazon raises minimum wage to $15 for all U.S. employees
- Voters decide the future of Missouri's minimum wage
- Voters pass Prop B to raise minimum wage
- Changes to minimum wage won’t impact gender pay gap
- MO minimum wage to rise in the new year