This article reflects on the second state to recognize Obama's push to raise the minimum wage. Maryland announced Monday that they would raise the minimum wage to $10.10 by July 2018. The law gives “... so many Maryland families the raise they deserve". Other legislators, such as Minnesota lawmakers, have agreed to raise the minimum wage to $9.50 by 2016- which may be a safer move, in my opinion. As opposed to the lawmakers in Connecticut who ended the move to raise the minimum wage $10.10 by the year 2017.
Republicans, the minority, believe that Maryland will be at a disadvantage with other states because it will reduce the labor force and force prices to increase. Some believe that this raise would cost over 500,000 jobs nationally; reversing the efforts to reduce unemployment.
This is interesting to read in light of the fact that even though jobs might be lost, raising the minimum wage to an acceptable level can bring many families above the poverty line and reduce dependence on transfer payments. Similarly, I read that increasing the minimum wage will not really affect the cost of most basic goods by much.
ReplyDeleteI see a good point from the republican side. From what professor Skosples says in class, the unemployment will rise causing less production from the workers. The wages would slowly fall in the long run.
ReplyDeleteForgot the link, sorry!!
ReplyDeletehttp://www.nytimes.com/2014/04/08/us/politics/pressing-obamas-agenda-maryland-lawmakers-raise-minimum-wage.html?_r=0