Houston businesses are celebrating the Senate's rejection of raising the federal minimum wage.
President Obama blamed Republicans for denying "millions of Americans a way out of poverty." But Ricky Craig at Houston's Hubcap Grill says it likely would have been the other way around.
“If they didn't do that, I think you would have seen a number of employment drops,” Craig tells KTRH News. “Instead of ten employees, I think a business would reduce it down to eight employees and put more work on them.”
Even the Congressional Budget Office said raising the minimum wage could mean a potential loss of 500,000 jobs.
Steve Christian, owner of Christian's Tailgate Sports Bar and Grill, says the nearly three dollar raise to $10.10 an hour was just too much at one time.
“I'm going to have to jack my hamburger prices and my beer prices from $10 a plate to $12 of $14 a plate,” says Christian.
“I've got at one point with my three restaurants 94 employees, and if I had to up 70 of them by three dollars an hour, wow, look at the labor cost that it takes to business and everything,” he says.
Still, Democrats now believe there was enough support for the wage increase to turn it into a winning political issue heading into the November congressional elections.