President Barack Obama in his State of the Union address Tuesday night said he'll sign an executive order raising the minimum wage for federal contractors, this as he tries to gain support for a minimum wage hike for all Americans.

The proposal would gradually raise the minimum wage to $10.10 an hour over three years.

Bill Hammond at the Texas Association of Business says Democrats clearly don't understand the economy.

“They think that profits are unlimited at time when they clearly are really not, and at a time when the unemployment rate for youth, especially minorities, is at an all-time high,” Hammond tells KTRH News.

Texas Senator John Cornyn says raising the minimum wage will do nothing to help unemployment which he describes as a cancer to our sluggish economy.

“He's treating the symptom and not the underlying problem,” Cornyn told Fox News Tuesday.

Both believe small businesses will be forced to fire workers or raise costs to make up the difference.

Hammond says minimum wage jobs are not meant to be permanent.

“Its an opportunity to learn about working really, and to be trained,” he says.

“The best way to get a job is to have a job, and if you go to work in a minimum wage job and you establish a descent work record, then the probability of you getting a better job goes way up,” says Hammond.