Over the years there has been much debate about raising the federal minimum wage. Some states have taken it upon themselves to set higher minimum wages than the federal minimum wage, because of the lack of action by congress. The supporters of the raising of the federal minimum wage have been more vocal lately. This is especially true since studies have shown, that the gap has grown between the wealthier population, and the middle class.
Recently President Obama, because of the lack of effort and action by congress, has used executive action to implement the raising of the federal minimum wage to $10.10 an hour for new federal contracts, effective 2015. This, naturally, has brought out commentary, studies that support and oppose this, as well as predictions that are totally opposite of each other. (Davis, S.)
The non-partisan Congressional Budget Office (CBO) examined the impact of raising the minimum wage to two levels, $9.00 and $10.00 an hour. On February 18, 2013 the CBO report concluded that at $9.00 300,000 workers’ wages would rise over the poverty line; however 100,000 jobs would be eliminated by employers to maintain profitability. The impact of a $10.10 an hour minimum wage on these numbers would be 900,000 workers moving above the poverty line while 500,000 jobs would be eliminated. Numerically this seems to support the lower wage. The spokesman for House Speaker John Boehner, a Republican, said, in part “raising the mandatory minimum wage may help some but there are costs associated with this, such as fewer people working”. He also said, the country should be focusing on creating and not destroying jobs. (Davis, S.; Furman, J., and Stevenson, B.)
On February 19, 2014 the White House and ...
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...ary 19, 2014) CBO: Minimum, wage hike may cost 500,000 jobs. USA Today, p.3A
Furman, J., and Stevenson, B. (2014). Congressional Budget Office Report Finds Minimum Wage Lifts Wages for 16.5 Million Workers. Retrieved from http://www.whitehouse.gov/blog/2014/02/18/congressional-budget-office-report-minimum-wage-confirms-consensus-views-beneficiari
Witcover, J. (2014, February 21). Wealth inequality contributes to enduring 'class warfare' in politics. Chicago Tribune
McCambridge, R. (2013). Walmart “Offended” by Pushback on Charity Aimed at Walmart Employees. Retrieved from http://www.nonprofitquarterly.org
Raising Minimum Wage for Fast Food Jobs Not a Problem. (2014). Retrieved from http://www.drudge.com/news/176267/raising-minimum-wage-fast-food-jobs-not
Opinion Line (2014, February 20, 2014) (Is Minimum wage hike loss for jobs or gain for poor? USA Today, Page 11A)
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