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Tag: minimum wage increase

  • Chicago $15 Minimum Wage Could Happen

    Chicago $15 Minimum Wage Could Happen

    If a group of Chicago aldermen’s plans prove successful, the minimum wage for the Illinois city could be increased to $15 per hour.

    The officials worked to introduce a proposal on Wednesday that would boost the city’s minimum wage.

    It’s been noted that a separate minimum wage proposal was put together by a panel Chicago Mayor Rahm Emanuel appointed.

    That panel included aldermen in addition to Chicago business leaders and labor officials.

    It’s also possible that a minimum wage hike could come by way of a vote in November.

    Reports indicate that Illinois voters might be asked whether or not it’s desirable to see the minimum wage increased to $10 per hour from the current $8.25.

    “Study after study demonstrates that when you put money into the pockets of consumers, they spend it,” said Alderman Ricardo Munoz. “They don’t hoard it in their mattresses.”

    The logic behind the hike is that providing Chicago workers with a minimum wage that increases one’s “livable wages” means that in addition to having an easier time paying necessary bills, there will be enough money left to spend on local businesses.

    These businesses would in turn be able to better pay employees at every level.

    At least, this is the hope behind minimum wage hikes that are taking place across the country.

    President Barack Obama wants Congress to raise the federal minimum wage to $10.10 per hour.

    Upwards of 38 states could be making adjustments to the minimum wage in the coming years.

    Michigan intends to raise their minimum wage to $9.25 per hour by the year 2018.

    For Chicago, the move is meant to keep the city competitive as the standard of living is among the highest in the state.

    Not everyone is thrilled with the idea of a minimum wage hike. The Chicagoland Chamber of Commerce believes such an increase would put the state of Illinois, and most especially Chicago, “at a competitive disadvantage”.

    Image via Wikimedia Commons

  • Minimum Wage Hike – $11.50 for Federal Rate?

    Minimum Wage Hike – $11.50 for Federal Rate?

    As this country has lived through, and is still living through, one of the most devastating recessions of the past few decades, it has produced hardships that are much too common for American families.

    Americans in this economy have seen some hard hits with jobs becoming scarce, or none at all – and too many employed families who remain way below the poverty level.

    Raising the minimum wage could bring those full time workers, still receiving minimum wage, out of the poverty level and back to where they should be, able to live without government assistance.

    A policy research group suggesting raising the federal minimum wage above $10 an hour is saying in an updated report that doing so would boost, not harm, job creation.

    This legislation was introduced earlier this year by Senator Tom Harkin and Senator George Miller.

    As previously reported by The Inquisitr, the Washington, D.C. council approved the $11.50 minimum wage for just the city area, although some suggested a $10 minimum wage was a more reasonable middle ground.

    A $10 minimum wage is already in effect in California. Multiple states besides California have been proposing a $10 minimum wage that is higher than the Federal minimum wage of $7.25.

    Michigan pushed for a $10 minimum wage, and one Michigan restaurant already pays $12 hourly and is still making profits. Illinois already has the fourth highest state minimum wage of $8.25, but Illinois politicians want a $10 minimum in Illinois as well.

    The point is workers who put in 40 hours a week deserve to live without complete reliance on food stamps and welfare. If you work in America, educated or not, you should be able to support your family.

    But would the $11.50 minimum wage be seen as a fair Federal minimum wage based upon economic data? In analysis collected and analyzed by economist John Schmitt at the Center for Economic and Policy Research proves that if the minimum wage is indexed to the official Consumer Price Index (CPI-U), then the Federal minimum wage should be $10.52 an hour.

    President Obama is on board for the $10.10 increase. The jury is still out on the $11.50 proposal.

    “We are very pleased President Obama endorsed a $10 an hour minimum wage bill,” Aaron Albright, a spokesman for Miller, said in an email. “This action unites all Democrats and minimum wage advocates behind one proposal that addresses income inequality in a powerful way. Congress must move to raise the minimum wage now.”

    And from President Obama, from his State of the Union Address – “Even with the tax relief we’ve put in place, a family with two kids that earns the minimum wage still lives below the poverty line. That’s wrong,” Obama said. “Tonight, let’s declare that in the wealthiest nation on Earth, no one who works full time should have to live in poverty.”

    Still, critics of the proposal to raise the minimum wage argue that even the $10 minimum wage is a “jobs killer,” and claim a higher Federal minimum wage will result in a worsened unemployment rate.

    Anyone concerned for the millions of struggling Americans, instead of concern for the companies that are famous for paying minimum wage – McDonald’s, Wal-Mart and others who are some of the wealthiest corporations in America, these corporations should be required to pay the wage increase, and then some.

    Image via YouTube

  • $11.50 Minimum Wage: Some Officials Skeptical of the Decision

    After nearly a year of protesting and organized demonstrations, fast-food and retail workers have finally received changes that definitely rule in their favor.

    The Washington City Council announced on Tuesday, Dec. 17, that the decision to raise minimum wage to $11.50 was unanimously approved.

    According to the NY Times, the new hourly pay rate which was increased from an $8.25 minimum, is one of the highest in a number of American cities. The $11.50 minimum wage rate is scheduled to go into effect in 2016, and will be indexed accordingly based on the level of inflation.

    Although the decision was unanimous, there was one democratic voice that opposed the wage hike. Mayor Vincent Gray stated that he opposed the change simply because there is no definitive way to determine how the change would affect the labor market. Gray recommended that minimum wage increased to just $10. However, Gray’s one veto wasn’t substantial enough to sway the decision as the unanimous vote still allowed the council to pass the measure.

    “The DC Council could vote on the $11.50 per hour minimum wage within the next week or two and to do so would be wrong. I hope our elected officials can reverse their trend of misguided and arbitrary business decisions,” the Reuters blog said. “That is far too high of a number and clearly would not have the impact on District residents that proponents have suggested.”

    Reuters reports that a plan was formulated by the District of Columbia Chambers of Commerce more than three years ago to move forward with the minimum wage increase, but the measure only started to progress recently.

    With the minimum wage increase, millions of workers across the region will see a slight surge in earning, while the market shifts to balance out the increase. By 2016, other states may incorporate such changes. However, there are still many concerns and reservations over the raising minimum wage more than $3.00 an hour. While more regions will probably make strides to approve such measures, skepticism may play a major role in the passing of the law in other regions, due to the evident long-term labor market uncertainties.

    Image via Wikimedia Commons | Food Strikes