Should We Raise the Minimum Wage to $9 an Hour?
President Obama proposed it in his State of the Union. Would a minimum-wage hike help or hurt workers, government or businesses?
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President Obama proposed raising the federal minimum wage to $9 an hour at the 2013 State of the Union address.
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Do you agree with President Obama that Congress should raise the federal minimum wage to $9 an hour? Here is what the president said in his 2013 State of the Union (see YouTube):
We know our economy is stronger when we reward an honest day’s work with honest wages. But today, a full-time worker making the minimum wage earns $14,500 a year. Even with the tax relief we put in place, a family with two kids that earns the minimum wage still lives below the poverty line. That’s wrong.
That’s why, since the last time this Congress raised the minimum wage, 19 states have chosen to bump theirs even higher. Tonight, let’s declare that in the wealthiest nation on Earth, no one who works full-time should have to live in poverty, and raise the federal minimum wage to $9 an hour. We should be able to get that done.
In Minnesota, workers not covered by the federal minimum wage can make as little as $5.25 an hour. (Click on the PDF thumbnail to see how minimum wage works in Minnesota.)
Here are some people's reactions to the State of the Union address and the idea of raising the minimum wage from the current $7.25 an hour. Add your opinion in comments below.
- "Extremely moving. Made me very proud." (Fridley Patch Facebook)
- "Same BS different speech." (Fridley Patch Facebook)
- "Obama nailed it! Rubio and the water reach was hysterical...what a dork! I think [the minimum-wage hike is] a great idea. We cant shame ppl for being trapped in poverty when our society keeps them there." (Fridley Patch Facebook)
What's your opinion on the minimum wage? Did you like the president's speech? Have your say in comments below.
yomammy
2:44 pm on Wednesday, February 13, 2013
maybe $8 as a feel good measure that we could all agree on
The left dosent realize that this move drives up pricing on everything.
Its like taxing medical devices now (ahemmm obamacare...) do you really think the company is going to eat that loss? of course not, the price will go up to cover the new tax. Basically a roundabout, shady way to indirectly stick it to the "big corporations"
Shawn Aune
4:13 pm on Wednesday, February 13, 2013
"The left dosent realize that this move drives up pricing on everything."
Not necessarily. It only raises prices of products produced by companies that pay less than $9 per hour.
Al Anderson
7:00 pm on Wednesday, February 13, 2013
Raising the minimum age will increase unemployment. This political stunt is done by Obama to placate the unions, some of which have their wages somewhat set by what the minimum wage is.
Niemand
8:10 am on Thursday, February 14, 2013
Yes I agree it should be raised.
Could you explain why increasing it would increase unemployment? And also how it would drive up prices? Just curious.
David
12:26 pm on Thursday, February 14, 2013
@Niemand - It becomes not only more costly for companies that employ minimum wage workers to create new jobs, but drives up costs for the labor pool that is already in place. Companies either have to absorb the cost, pass it on to consumers (i.e. raise prices), or decrease labor costs by reducing the number of workers employed.
I think that the President is making the assumption that the costs will be absorbed but others (myself included) believe that at best, stunt job creation, or at worst, increase unemployment. I don't necessarily believe that the increase is bad move but not right now. I think that it is irresponsible to make a move when unemployment is at 8% and we are in the midst of a major budget crisis (this will drive up labor costs for the government too). Our focus should be on helping the 8% of the people without jobs before we focus people who are already employed.
Shawn Aune
2:09 pm on Thursday, February 14, 2013
Think of it like this.
You need meat. You can get a pound of burger for $7.25 or a pound of steak for $9.00.
If you need to cut expenses you'll buy burger instead of steak.
If, suddenly, burger is the same price per pound as steak at $9 you're going to pick the higher quality meat.
Will this lead to higher unemployment? Sadly yes. Businesses are already strapped for cash. They've already trimmed as much fat as they can due the the recession.
Leah
8:27 am on Thursday, February 14, 2013
This is NOT about the corporations but the working class.
Stop being selfish and open your eyes! I would gladly pay more to keep these people at work and getting a decent wage so that they can feed their families. Not everyone on min. Wage is a loser who is lazy.
Bette
8:53 am on Thursday, February 14, 2013
Some people would be surprised at how little income some families get by on. And they only get by. They are not paid a "living wage" - want more info. Go to:
http://livingwage.mit.edu/counties/27053
Mike McLean
11:53 am on Thursday, February 14, 2013
If they are not being paid a living wage, maybe they are in the wrong job. Get a better job or maybe get a second job.
It is not up to employers to guarantee a living wage. They pay market wages.
Reed Bornholdt
10:57 am on Thursday, February 14, 2013
How many public employee union contracts are tied to increases in the minimum wage? How many public employees are living in poverty? HINT: We will never see this reported by a liberal politician nor the lamestream media. If the Dayton regime raises the Minnesota minimum wage to $9.15, who funds the overnight $3.35/hr wage increase to public employees? What is the benefit to taxpayers? This annual liberal ploy is (again) nothing more than a payoff to unions ... at taxpayer expense. Small business employers will be forced to employ fewer minimum wage workers.
Mike McLean
11:49 am on Thursday, February 14, 2013
So Gov Dayton wants to raise the state minimum wage from $6.15 up to $9.50.
I wonder if the businesses will automatically see a $3.50 increase in revenue performed by each employee.
Let's say that I own a small business that employs 49 (must stay below 50 to not be forced into Obamacare) people making $6.15 per hour. That amounts to labor charge of $301.35. Now I am forced to pay those 49 employees $9.50 per hour out of that $301.35.
That restricts me to being able to retain only 32 employees. I would be forced to let 17 formerly employed people go. I could not longer afford those 17 people.
And if I am forced to hire young and or inexperienced workers at $9.50 per hour, I will either be very selective as to who I hire, or maybe I'll just pay those 32 employees overtime.
Shawn Aune
1:11 pm on Thursday, February 14, 2013
Perhaps Dayton is trying to say that any business that isn't profitable even while paying people well below a livable wage isn't welcome in MN?
Mike McLean
1:08 pm on Thursday, February 14, 2013
" Dont like the minimum wage?; If youve got minimal skills, minimal education, show minimum motivation, and provide a minimum contribution to the workplace, why should anyone be forced to pay you more? "
Shawn Aune
1:15 pm on Thursday, February 14, 2013
That sounds like a problem with the person doing the hiring to me.
Why is somebody hiring people that have, "minimal skills, minimal education, show minimum motivation, and provide a minimum contribution to the workplace?"
Why do we care if such a poorly run business goes under?
You get what you pay for.
Bette
2:04 pm on Thursday, February 14, 2013
It may be a good exercise to see which jobs are being paid in the $6/hr range. These may be service jobs that if not done, you would definitely notice. And some day you may need them. Then you have a face in front of you - not just a generalized "minimal skills" person - with family.
Kristi VonDeylen
4:00 pm on Thursday, February 14, 2013
I went to college and earned a degree as a single mother so I could make more than minimum wage, which back then was $6.** per hour. There are plenty of incentives for low income earners to further their education in order to earn the higher salaries. By raising the minimum wage, it not only belittles my salary, but decreases the incentive to go to college.
John Hein
9:07 am on Monday, February 18, 2013
Mr President, let em re-write your phrase "no one who works full-time should have to live in poverty" for you...
If you don't have the skills or experience to get a job that pays $9/hr then it should be illegal for you to work.
Note to the inexperienced, unskilled, unemployed youth without family connections to vouch for you the door of opportunity is being relocated to the Second floor. No stairs or elevators are available.