I read about this in my local paper - it was very similar to this article in the Sun-Times: here.
Right now it's the same as the Federal min. wage - $5.15/hr (for over 18, no tips). On Jan. 1, 2004, it'll go up to $5.50, and on Jan. 1, 2005, it'll jump to $6.50.
I have no idea what to think of this. And I know we've had tons of minimum wage discussions before. But this seems like such a huge jump, I really wanted to point it out to all of you, and see what people think.
I'm still mulling it over, myself.
Posted by TomDavidson (Member # 124) on :
Since there's no evidence that increasing the minimum wage actually leads to a reduction in available jobs, and inflation is low enough right now to be a negligible concern, I'll be interested in this as a test case. Historically, minimum wage increases are followed by economic improvement -- although there's certainly no firm causal link -- rather than the cataclysmic collapse of capitalism that many conservatives believe should occur, but enough businesses are operating at low margins right now that this may be the right idea at a very wrong time. We'll see.
Posted by BannaOj (Member # 3206) on :
I didn't realize minimium wage was so low. It is higher in CA, when I was actually working for near minimum and already getting like $6.25/hr.
What surprises me is that there are states lower than Federal minimum wage. This doesn't quite make sense to me.
AJ Gah! If I just read my own link! "Note: Where Federal and state law have different minimum wage rates, the higher standard applies."
[ August 22, 2003, 10:52 AM: Message edited by: BannaOj ]
Posted by Vána (Member # 3262) on :
I'm not too concerned with the actual rate, I don't think - it's the huge jump that surprises me.
Or maybe I'm just bitter because my husband's raise - the one attached to his promotion from delivery and installation to on-site technition - was only $1.00/hr. That really could have something to do with it.
Posted by BannaOj (Member # 3206) on :
Well Alaska and Conneticut have the two highest at $7.15/hr and $7.10/hr (Conneticut's is $6.90 now, going up to $.7.10 Jan '04)
CA's is $6.75 which isn't bad.
AJ
Posted by Jacare Sorridente (Member # 1906) on :
An increase in minimum wage will make only short-term benefits and slight long term harm, I think. If minimum wage is increased then the cost of making a product or buying a service is increased. That means that in oreder to obtain the same profits a company must charge more for their product. This means that a minimum wage increase will, for a short time ensure that minimum wage earners have a bit more cash. Inevitably, however, the higher costs will get back around to the consumer through a higher cost of living. The downside seems to me that those who don't earn minimum wage will, of course, get no raise. When the cost moves through the chain and the cost of living is higher, those who got no raise now have to pay more for the same goods and services.
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