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Tuesday, May 03, 2005

Senate OKs minimum wage raise

--posted by Tony Garcia on 5/03/2005

Here it is the Senate is raising minimum wage by a dollar.

This is incredible. I have been at the U for 5 years, busting my tail and during my 4 1/2 years in AFSCME I did not even get a cumulative raise of $1.

Unskilled labor, teens, workers getting unreported additional tip income and bad workers (sorry that all of those got lumped together, but that covers almost all of the people earning minimum wage at their primary job) all are going to get a nearly 20% raise.

This is a wonderful precedent being set the DFL Senate.

Something that came up during the debate yesterday is the observation that there is almost a direct correlation between the states with higher minimum wages (essentially a mandate of how little unworthy workers can be paid) and states with higher unemployment rates. (I have not verified this...I just heard it on the state House debate on this bill yesterday.)

Why would that be? Because when you force up the minimum wage those few people on minimum wage, most of whom are not deserving of a 20% raise, make the cost of doing business higher. The employer has two choices: (a) cutting costs, usually by cutting staff, (b) raising prices which generally lead to a decrease in both sales and profit margins which eventually lead to cut staffing.

Good job DFL. God help the border towns that have to compete with other states directly, other states with better business climates.

Good job DFL.


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