Though many probably think CEOs of major corporations are against a minimum wage increase, CEO of Starbucks Howard Schultz said he believes that it should increase.
While he said it should increase to nine dollars, he said it should be done carefully and thoughtfully as “the minimum wage issue is a double-edged sword” that could deter employers from hiring more people.
“On balance, I am a supporter of the minimum wage going up,” Schultz said.
“We’ve got to be very careful what we wish for because some employers - and there could be a lot of them - will be scared away from hiring new people or creating incremental hours for part-time people as a result of that wage going up,” he said.
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President Obama proposed increasing the federal minimum wage to nine dollars an hour, and some Democrats even said it should be 10 an hour. But Republicans argue that raising wages could end up hurting employees more as businesses would hire less.
On average, a Starbucks employee makes $8.78 an hour, which is higher than the current federal minimum wage. Schultz said it is misleading, though, as it doesn’t account for tips or raises.
Schultz and his colleagues have been known for making their political opinions known over the years. In December, they wrote “come together” on their cups, urging lawmakers to avoid a fiscal cliff.
Schultz said the reluctance of government officials to come together on debt and spending measures is “sapping the lifeblood” of America.