Democrats Prepare to Raise Minimum Wage

AP via Newsday ^ | November 16, 2006 | Dennis Freking

[Quilla]

It looks like full steam ahead for a significant boost to the federal minimum wage when Democrats assume control of Congress in January.

Sen. Edward Kennedy of Massachusetts said Thursday that increasing the federal minimum wage from $5.15 to $7.25 would be his top priority as chairman of the Senate Committee on Health, Education, Labor and Pensions.

On the House side, incoming Speaker Nancy Pelosi, D-Calif., already has listed an increase in the minimum wage as one of the issues that would be taken up during the first 100 hours of the next Congress.

"Americans are working harder than ever, but millions of hardworking men and women across the country aren't getting their fair share," Kennedy said during a speech outlining his legislative agenda for next year. "We're not rewarding work fairly anymore, and working families are falling behind."

President Bush signaled readiness last week to consider some Democratic priorities such as a minimum-wage increase, overhauling immigration policy and finding compromise on renewing the No Child Left Behind education law.

Critics of boosting the minimum wage say it kills job creation as employers hire fewer entry-level workers to compensate for the higher wage expenses. Kennedy said the minimum wage has remained at $5.15 an hour for nearly 10 years.

[Kenton]

anyone here ever gotten a 40% raise?

Over 10 years? That comes out to a 3.4% increase per year, except without the increase every year.

For example, somebody making $100 per week makes $5200, or $52,000 in ten years.

The same guy, starting at $100/week and getting a 3.4% increase annually will make $60,722 over the same ten-year period, about a 16% difference.

[VRWCmember]

They survived the $5.15 wage increase.

Because that pretty much brought it up to the market rate. The market minimum wage has not changed significantly since then. The market minimum wage right now is probably between $5.50 and $6.00 per hour. If it is raised to $7.25 you WILL see inflation and unemployement increases as a result.

[theDentist]

ABSOLUTELY!!

[CharacterCounts]

t was sarcasm dude.

Okay, so I'm a little slow today!

[from occupied ga]

Americans are working harder than ever, but millions of hardworking men and women across the country aren't getting their fair share," Kennedy said during a speech outlining his legislative agenda for next year. "We're not rewarding work fairly anymore, and working families are falling behind."

There is so much wrong with this piece of bovine excrement* that I hardly know where to start.

First. Raising the minimum wage isn't about rewarding the marginally competent, but about rewarding the unions. Many union contracts are tied to multiples of the minimum wage, and when this goes through lots of union workers will get an automative wage boost (I think htere is a lot of this in the government employees unions)

Secondly there are damn few "working families" who rely on the minimum wage. A study done several years ago correlated hous worked with family income the correlation was clear. The richest families worked 100 or more hours per week. The poorest worked 20 hours or less a week. So most people are poor because of what they do (on in this case don't do)

As far as getting their "fair share." Their fair share is EXACTLY what they are getting. These regulations don't "level the playing field" they level the scoreboard.

*piece of bovine excrement refers to Kennedy's comments. If I were referring to Kennedy himself I would have used the term SACK of bovine excrement.

[Marathoner]

"Americans are working harder than ever, but millions of hardworking men and women across the country aren't getting their fair share," Kennedy said during a speech outlining his legislative agenda for next year. "We're not rewarding work fairly anymore, and working families are falling behind."

Gee, I wonder how many businesses Fat Teddy has ever been responsible for running?

[kabar]

The Federal Government should not be raising the minimum wage for every state in the union. There are wide desparities among the states in terms of cost of living and local wage scales. Over 20 states now have miminimum wage rates over the Federal proposed increase. Artificially increasing the minimum wage without any connection to the marketplace is not the way we do things in capitalistic economy.

Raising the minimum wage will compress the wage scale causing other wages to rise. The costs will be passed on to the consumer. It will make illegals even more attractive to employ. It could cost jobs. It will probably contribute to an increase in the inflation rate. And most of the increases will not go to the poor, but middle class workers who work parttime or kids.

[poobear]

Yep, that measly $2.10 an hour costs the employer nearly $100.00 NOT TO MENTION, Workman's comp goes up with every $1,000.00 of total payroll.

Thanks Congress!

[ken5050]

Silly you...everyone knows that you, as the business owner, are expected to CUT your own income..

[from occupied ga]

Gee, I wonder how many businesses Fat Teddy has ever been responsible for running?

If you mean running into the ground by excessive regulations and taxation I'd say tens of thousands.

[GoLightly]

Many union contracts tie their pay rate to the minimum wage rate.

[N. Theknow]

I hope Bush is warming up his VETO stamp.... but I doubt it.

He should say the Democrats are a bunch of cheapskates just trying to keep the working poor from getting their REAL fair share and propose raising it to $50 an hour.

[mc6809e]

[DJ Frisat]

To those who have averred that this will wreck the economy, boost unemployment, etc. -- yeah, maybe it will.

And what could be better for the Dems? They can't lose. They get the warm-fuzzies for raising the minimum wage, and when the economy tanks & unemployment rises, it'll all be on "Bush's watch." So they can use it to beat our perpetually-clueless and gutless Pubbies in 2008, when the Dems & the MSM go back to harping on the terrible economy/unemployment numbers. The president is always credited/hung with those figures, and protestations (if any are raised) that it was brought about by Dem rule in Congress will fall on deaf ears.

[JoanneSD]

California has a 6.75 min wage, and we still have 1.00 menu at Wendys, and Burger King, and McDonalds.....and the wage it going up even more at the first of the year...

[Beagle8U]

Who this will hurt the most is the retired granny/gramps that takes a part time job at a convenience store/gas station.

Mostly they want a few extra bucks and to get out and have HUMAN CONTACT!

They will be the first to go.

[kabar]

As I recall, there would be more $$ going into Unemployment, into insurances (not just their medical), into soc security, into 401K.

Exactly. A $2.10 raise means that the employer and employee will be paying an additional $.32 an hour or $.16 each into SS and Medicare. The current contribution rate is 15.3%.

[from occupied ga]

Bush better have a veto pen ready

I don't think he has one. And I don't think he'll be able to get one for this. The man has all of the spine to stand up to liberalism that jellyfish exhibit. Don't expect him to veto gun control either. Expect a permanent assault weapons ban in 2007 and expect Shrub to sign it.

[RedStateRocker]

Correct. I think this is one issue where conservatives get their heads handed back to them. One can quote Friedman and von Meises all freaking DAY and all it does is lose the votes of everyone who is NOT a small businessman, the GOP has to deal with it, just like the smarter Democrats have realized that, however they may feel about guns it's either STFU or lose elections.

[TheDon]

The city of Los Angeles just voted last night to force all companies in the city to pay $10.64/hour living wage.

The city of LA is pretty cheap! $10.64/hour is not a living wage in LA. They should have made it at least $30/hour. How can anyone survive on $10.64/hour in LA?