Minnesota is the next state to join the trend of increasing the minimum wage. State officials approved the raise last Thursday. The increase will raise the minimum wage to $9.50 and is set to begin in 2016. However the change does not apply to every company or business. the bigger the company, the more they have to pay closer to that $9.50 mark. Some smaller employers who are exempt from certain federal labor laws can pay a lower rate. That will increase to $6.50 hourly in August, $7.25 the following year, and then $7.75 a year later. The minimum wage will also be set at $7.25 for workers at larger businesses if they are under the age of 18 and as a temporary training wage for those 19 and 20 years old. That rate is also the federal minimum. Obama also commented on this raise "I urge Congress to follow Minnesota's lead, raise the federal minimum wage, and lift wages for 28 million Americans,"
http://money.cnn.com/2014/04/10/news/economy/minnesota-minimum-wage/index.html?iid=SF_E_LN
This hike in minimum wage will be the first move but it will only make a difference in that area and can still cause troubles with some companies. If we wish to grow the economy now and get to where we were, we need to keep wages low.
ReplyDeleteIf there is to be an increase in minimum wages I like that they are doing it in brackets and not increasing it just to one rate for everyone. If this were to happen many companies would not be able to pay these wages and would result in the firing of some workers so because they are separating the companies I believe this has a better chance of working
ReplyDeleteThis is the best chance for it to work, although I don't think its the best way for the economy to grow. I think they should keep wages low to allow the businesses to grow.
ReplyDeleteIf I were to agree to a major increase in the minimum wage, this would definitely be the closest plan I would choose. This is a safer plan in comparison to Maryland and Connecticut's hike to $10.10 an hour for all. This smaller increase would help reduce layoffs due to wage increases and still affect the standard of living. It's hard to explain to someone supporting a family why getting paid $7.25 is a good thing for the economy, so I think these small increases support both sides of the argument.
ReplyDeleteWe have talked about this in class before and I have never agreed to raising minimum wage, These jobs are meant to be part time and are not supposed to be a living wage. Hopefully we will see some of the effects that prove raising these wages is not as beneficial to the economy as some think.
ReplyDeleteI like the fact that small companies are not subjected to paying a higher minimum wage. It helps even the playing field for small and big companies. It is not fair that big companies who experience economies of scale use the same minimum wage as small companies that experience relatively higher cost.
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