Some Business Owners Want to Increase the Federal Minimum Wage

 

U.S. – Business owners across the nation are coming together in support of increasing the federal minimum wage in the U.S.

July 24 will mark eight years since the federal minimum wage was last increased, according to the Business for a Fair Minimum Wage. Since 2009, the federal minimum wage has remained at $7.25, which is worth less than it was in 1950, adjusted for the cost of living.

Business owners and executives across the country are speaking out in support of raising the minimum wage to strengthen businesses and boost consumer buying power.

Since it was raised in 2009, the federal minimum wage has lost 12 percent of its buying power, according to the Bureau of Labor Statistics Inflation Calculator. In other words, the minimum wage has lost more than one-third of the buying power it had in 1968, when the minimum wage was at its peak value.

“The current federal minimum wage just doesn’t add up for workers or businesses,” said Holly Sklar, CEO of Business for a Fair Minimum Wage. “Workers are also customers. When the minimum wage is too little to live on, it undermines the consumer demand that powers our economy. Instead of paying decent wages, low-wage businesses end up paying the costs of low staff morale and high turnover – from increased hiring and training costs to lower productivity and customer satisfaction. While action in the states is vital where possible, we need federal action to ensure an adequate minimum wage no matter where people work and do business.”

While 29 states now have minimum wages above $7.25 an hour, 21 states have exactly $7.25 as their minimum wage. Texas is among the 21 states with minimum wage right at $7.25. In a broader sense, a minimum wage of $7.25 an hour amounts to just $15,080/year for full-time workers.

The Business for Minimum Wage notes that within the 29 states with minimum wage over $7.25, only 13 pay anywhere up to $9 and only 7 states pay $10 or higher.

“The value of the minimum wage is so eroded that it buys less today than it did when I needed it to survive in the 1960s. Raising the minimum wage makes great economic sense – boosting sales and improving employee retention, morale and customer service,” Roger Smith, President and CEO, American Income Life, headquartered in Waco, TX said. “[However] it’s much more than that. Raising the minimum wage is a crucial step to restoring the shattered American Dream.”

No statewide minimum wage has yet to reach $11.29, which is the value of the 1968 minimum wage in today’s dollars.

On the other hand, a government mandated minimum wage may not be the best way to develop and maintain a strong labor force. The American Enterprise Institute argues that in order to maximize opportunity for unskilled workers, wages based on the free market increase those opportunities. “Simply put, we would rather see unskilled workers employed at a market wage – even if that wage is only $5, $6 an hour – that allows them to gain valuable work experience and on-the-job training, than to be unemployed at $0.00 an hour,” an AEI report states. “And unfortunately, a $15 minimum wage maximizes the probability that an unskilled worker will be unemployed at $0.00 an hour instead of being gainfully employed.”

For specific state rates, visit the Economic Policy Institute Minimum Wage Tracker.

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If a business owner thinks employees should be paid more, why don't they just pay employees more? What am I missing here?

Why have the Government force you to pay your employees more, if you think they should get more pay, then pay them more

The first thing I noticed was the year range. Since when do we go back 67 years for a dollar comparison? You might as well go back to 1895 and not that the dollar has lost 95% of its value and as such would make the minimum wage minuscule. The second thing is that the writer assumes that the minimum wage is supposed to be a livable wage. It is not and was never meant to be a livable wage. If the United States hiked the minimum wage to a livable wage standard, almost all businesses would have to cut their workforce. Fewer people would be earning anything. In some areas of Texas, the minimum livable wage would be close to $20/hour. A company that hired three people at $7.25 an hour would have to fire two to keep their wage costs under control. That would impact their customer service and other capabilities.

Instead of hiking the minimum wage, maybe we should look at the costs of living and find out why they are astronomical compared to the 1970s.

I'd love to see the minimum wage raised to about $14.50 per hour, doubling what it is set at now. I think it would be hilarious to watch this entire low wage paying town stagger from the effects of a blow like that and have to fork out to and finally pay employees here what they are worth..... Maybe then, people in this town could afford to stay up with the tax rates imposed upon home owners in this town......

I agree whole heartedly with all three of these statements. The first one is commom sense, second one is factual, and third would just be fun to see happen!

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