Hot Topics

Most Shared

Top Stories

Top Stories

 
text size

As another state considers raising the minimum wage, whom does it help?

Updated: Saturday, September 21 2013, 03:27 PM CDT
Reported by Kristine Frazao:

California is poised to start paying the highest minimum wage in the country.

That will make California at least the 13th state this year to raise minimum wages.  But who is it truly helping?

Minimum hourly wages are on the rise across the nation after years of stagnation.

At least a dozen states including Ohio, Oregon, and Florida boosted minimum pay this year above the federal rate of $7.25 an hour. California is on the verge of setting a new high within the U.S. at a $10 dollar an hour minimum.

“Do we want as a nation to price teenagers and young 20-year-olds out of the job market?" questioned Dave Norman.

Norman is the President of Davco, one of the largest fast food companies in the United States with more than 150 Wendy's restaurants. 

As minimum wages rise to ten dollars or more, Norman says older workers will replace teens and 20 somethings. It will spur more automation and likely lead to closing less profitable stores.  

"The minimum wage was never intended to be the sole support of a family of four," commented Norman.

True, but that was before the Great Recession and before the coming of the global wage, says Steven Isberg, a finance expert.

"As we moved into the recessionary economy between 2006, 2007 the number of people at or below that wage increased substantially,” explained finance expert Isberg.  “Why? Because people were losing jobs and turning to things like retail."

Not every state is ready to jump on the jack-up the minimum wage wagon. Maine and the District of Columbia rejected proposals to increase it.  Although the District of Columbia and Maine already offer higher hourly rates than the federal minimum.

But 34 more states including Maryland, Illinois and Wisconsin are seriously contemplating higher minimum wages. There's even been talk on Capitol Hill of raising the federal minimum.

"If it's raised on a national level, than we have a level playing field for all the employers and we will have to deal with it," Norman admitted.

A deal that could do more harm than good for those on the low end of the pay scale.

Here is the link for states’ minimum wage table" http://www.ncsl.org/issues-research/labor/state-minimum-wage-chart.aspx.

In Pennsylvania, House Bill 1057, introduced by Rep. Mark Cohen out of Philadelphia in March 2013, would raise the minimum wage to $9 an hour. 
As another state considers raising the minimum wage, whom does it help?


Advertise with us!

Related Stories

 
Advertise with us!