According to the About dot com, Robert’s US Government Info Blog, A whopping $2.10 in the Federal minimum wage goes into effect on Friday, the 24th of July!
The above blog is one of the most coherent, opinion-free summaries of the situation that I could find so far.
This article also lists the 30 states that will be affected by the increase because they are below, or don’t have minimum wages.
The Federal minimum wage goes from 6.55 an hour to 7.25 an hour; an 11 percent increase. For some 2 million American workers,who make less than $15,000 annually, this adds up to $120 a month.
This wage increase is the final step in a three step process that began with the passage of the Federal Minimum Wage Act of 2007.
A CBS News report goes straight to the polarizing, debate-fueling pith of this story: resulting job losses, particularly in the teenage work sectors. Estimates in one market: a job loss of 3 percent for every 10 percent increase in the minimum wage.
An equally passionate opposing perspective is provided at the Common Dreams web page. This perspective, supported by businesses, is that increased wages help to stimulate the economy as the newly flush workers flush the bucks right down into local economies. More income = more spending! Makes sense to me.
Of course, an increase in the Federal minimum wage does not insure that everyone actually GETS the minimum wage. Temp workers can be paid less than the minimum wage via various schemes. One involves having the worker sign on for “part ownership” of the temp agency, itself.
Bill Horne’s article “The Loss Of Investigative Reporting” has an interesting take on the Fontana, California warehouse district, and how minimum wage and temp worker issues apply there.
All in all, I think that the increased minimum wages will stimulate the economy, as McDonald’s employees go out on date night to spend their earnings at Wendy’s, and vice versa.