Minimum Wage Increase: Hurt or Help Our Economy?
As the Democrats promised, they have gained approval in the U.S. House to raise the Federal minimum wage from $5.15 an hour to $7.25 an hour. The measure passed by a 315-116 vote, with many Republicans joining in and voting for the increase. The measure is now in the Senate for consideration. President Bush is not in favor of the increase.
The minimum wage would move from $5.15 to $5.85 in 60 days after the law is enacted, then to $6.55 a year later and to $7.25 a year after that. Florida’s minimum already exceeds the Federal minimum. We are at $6.67 (effective 1/1/07), up from $6.40 last year.
This is the first increase in the minimum wage in 10 years. Some feel this increase will hurt employment chances for low-wage workers. Others say it is long overdue.
Is the change a good one and how will it impact our local economy? Tell us what you think.
Note: Check out the “Open Thread” below this one for discussion of several other current issues.
posted by Blog Master @ 9:27 PM
20 Comments:
A Big Mac will cost us more and if you want to buy a horse you will have to pay a higher price.
The increase in minimum wage has some positives:
1. Increased amount of Fed. Income and Social Security Taxes paid to U.S. Govt.
2. Higher state sales tax revenues, if prices go up on taxable items to make up for the increase in minimum wage.
Raising the federal minimum is a non-issue in Florida. Thanks to smart voters in 2004, our state minimum wage should always be at or above the federal required amount. The 2004 constitutional amendment requiring a higher minimum with annual adjustments for inflation will likely keep Florida workers better off than the federal level.
The problem we have locally is too many jobs at the minimum or slightly above. Need more high paying jobs in Marion to improve our local economy.
Let me give you something else to think about. The average CEO makes about 800 times more than a minimum wage earner. The average CEO is paid 821 times as much as a minimum-wage earner. The Economic Policy Institute writes: "An average CEO earns more before lunchtime on the very first day of work in the year than a minimum-wage worker earns all year."
Yep, the key word is low not minimum.
My business friends tell me that they have to pay at least $8.00/hour to find even unskilled labor. If that's so, I have no reason to doubt them, then minimum wage is not an issue in Marion County.
Anyone think the fact the Georgia minimum wage is $5.15 an hour, or $1.52 less than Florida, has any bearing on E-One and their decision about Georgia as a potential location?
Not a factor. What's important is the $10-15 million they can get here compared to what is bid elsewhere. Simple as that.
Increasing the minimum also will benefit other workers. Many employers must adjust the wages of other employees to maintain a pay differences between them and the minimum wage workers. The compression caused by the minimum wage change will be acted upon by increasing the wages of those whose wages are compressed.
Screw the minimum wage increase! We are about to get hosed by Crist’s plan to solve the insurance problems in Florida.
During last year's election season Florida Democrats proposed plans to have the state assume more of the financial risk from hurricanes to drive down insurance rates.
Charlie Crist and the Republican Party of Florida spent millions of dollars on political ads blasting the Democrats insurance plan as "risky" and irresponsible. The Democrats want to bail out the insurance companies on the back of Florida taxpayers, and that's wrong, Crist warned us.
Now, with a special session on insurance opening this week, every plan newly elected Crist and the Republican dominated Legislature are promoting involves asking taxpayers and consumers to take on much more risk.
Hold onto your wallets taxpayers!
I have confidence that Crist and the legisl. will come up with something. It may not be perfect the first time around. Maybe it will keep our tax increases from going above our insurance prices. I'm giving them a chance.
This is the quote of the day concerning increasing the minimum wage. It comes from Tom Blackburn of the Palm Beach Post.
“There is a fact-based case for raising the minimum wage, but experience is enough. Every time Congress raises the minimum wage, business lobbyists say the sky will fall. Congress has passed seven raises since 1956. Step outside and look up. Case closed.”
Frankly, what Blackburn says also seems to capture the sentiment of many people about E-One departing Ocala. The sky is not likely to fall.
The government should stay out of setting wages. I'm a free market guy and let it work.
We have a small business. None of our employees have ever started at minimum wage. All our employees start out at $10.00 an hour. When I moved to Florida in 1977, I left a job making $6.85 an hr., plus all benefits. Started a full time job here, making $2.95 an hr. I was making more on unemployment than working full time. I was told the wages were less because the cost of living was cheaper. Not so. Couldn't even afford an apartment on $2.95 an hour.
THE EDC WEBSITE HAS THE AVERAGE ANNUAL EARNINGS PER WORKER IN THE COUNTY AT $29,009 (LOOKS LIKE THE DATA IS ABOUT A YEAR OLD). THAT WOULD EQUAL AN AVERAGE HOURLY WAGE OF ABOUT $13.95.
I may have to fire my mother in law or cut her work hours if I have to pay her $7.25 an hour! She is the scheduler for our business.
From the AP wires:
“Democrats' promise of a quick increase in the minimum wage ran aground Wednesday in the Senate, where lawmakers are insisting it include new tax breaks for restaurants and other businesses that rely on low-pay workers.
On a 54-43 vote, Democrats lost an effort to advance a House-passed bill that would lift the pay floor from $5.15 to $7.25 an hour without any accompanying tax cut. Opponents of the tax cut needed 60 votes to prevail.”
Isn't that what Night Owl told us would be needed for the thing to pass?
That's OK with me.
Mike,
Think you have who has passed what backwards.
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