Minimum wage hike?
POSTED: Wednesday, February 13, 2013 - 6:35pm
UPDATED: Wednesday, March 27, 2013 - 12:14pm
President Obama called for congress to pass a raise in the minimum wage...arguing the current $7 dollars 25 cents is too little to keep a family above the poverty line.
“ No one who works full-time should have to live in poverty, and raise the federal minimum wage to $9.00 an hour, he said Tuesday night.“
2/3rds of minimum wage workers are women, and it was last raised in 2009.
It all began in 1894 in New Zealand. Since then, 90% of the countries in the world have set a minum wage workers can be paid.
But Congressman Louie Gohmert thinks the proposed hike this time is a job killer.
‘When the unemployment rate is so dramatically high,” he says, “basically across the country but especially in minority neighborhoods, the last thing we want to do is take away the chance for entry level jobs.”
“About 57% would be women. About 85% of them are 20 years old or older,” says economist Doug Hill of the Economkic Policy Institute.
The argument is as old as the minimum wage itself. More money in the pockets of workers gets spent, thus improving the economy.
Or, more money in the pockets of workers forces employers to hire fewer of them.
And economists don’t even agree.
“As we’ve raised the minimum wage, more businesses have had to let people go,” Gohmert says.
“Our figures indicate you’re looking at something like an increase of 14-billion dollars in the Gross Domestic Product,” says Hill. “And that results in something like 100-120,000 new jobs.”
Gohmert disagreed, “It would just devastate East Texas as far as entry level jobs if we raise the minimum wage like that at this time.”