Tuesday, March 06, 2007

Rise in Minimum Wage

Back in Januarty Congress passed a bill to raise federal minimum wage from $5.15 to $7.25 over the next two years!! I had heard about this over a month ago but learned more details today. Minimum wage has not been risen since 1996 when it went from $4.75 to $5.15. The government try's to ease businesses into the increase over a two year period the first of which goes into effect next month. 7% of our work force earns minimum wage (not counting illegal immigrants which is a completly different workforce the government does not account for; whom many times make less then $5.15). Making mimum wage would be $10,712 (at $5.15) a year if you worked full time. This ofcourse is very much below the poverty line. This rise will effect 13 million workers. Some cities have whats called a living wage ordinance since cost are higher in some cities, this is a local governments decision. Its not just true in large cities to have high cost of living. Lexington's living wage is estimated to be $9.63/hr for a decent standard living and this is higher then Louisville's because of housing is more student driven here. The problem local governments have with a Living wage ordinance is you must raise everyone's salaries because if Sue starts out at $9.63 in 2007 and Tom started out at $5.15 in 2000 and has work 7 years and is only making $10 he wont be happy. With all that said the new (in two years) $7.25 will still not keep people working out of the poverty line but its a start!

4 comments:

Peter said...

it's not that simple. (again, peter comes in as debbie downer).

when McDonalds has to pay there employees more because of minimum wage, they have to charge more for their fries. Those employees eat those fries - so their expenses go up.

No doubt we need to raise the minimum wage, but a living wage isn't the right solution. Remember, most employers pay employees more than the minimum wage. Raise the minimum, but leave 'living wages' up to employers. Let the market forces decide.

Also, I don't think the Senate passed the min. wage increase and I'm pretty sure Bush hasn't signed it - so its not going into effect yet.

Mandy said...

YAY for the increase, FINALLY! Haha, I heard about this, but I wasn't sure of a lot of the details! Of course, by the time it goes through, I will hopefully be working at a job that is anything but minimum wage, but like you said, it is a start!

m worsham said...

are they doing that in Indiana too??? i hope so cuz i'll be a rich bitch! all i ever have are minimum wage jobs...

janine said...

that's why people should work at wendy's and not mc donald's. wendy's pay begins at $7.25 (at least that's what they started me at when I worked there)