Do you hear it? I do, it’s the shrieks of horror by the House GOP, Boehner and Cantor! How dare the Democrats raise the pay of our lowest paid workers! $9.80 will most definitely kill businesses, they will most likely say.
Considering, minimum wage is only $7.25 an hour at the federal level, that equals to only $15,000 a year, if you work full time, every single week of the year.
This will bring a huge boost to the economy, over 2/3rds of minimum wage workers are employed for a large corporation who are currently sitting on over a trillion dollars.
The bill, named the Fair Minimum Wage Act, HR 6211 will bring federal minimum wage up to $9.80 an hour over three years. It will also increase wages for waiters and waitresses, whose pay has been stuck at $2.13 an hour for TWENTY YEARS. The pay for waiters and waitresses will increase by eighty five cents a year until it hits 70% of the regular minimum wage of $9.80.
Most minimum wage workers are teens, so the effect on the economy will be extraordinary with them. Teens do not have mortgages, bills etc. They spend every last dime, every week in the local economy. They go to movies, shop and eat out every weekend.
This increases the profits of business due to the increased cash coming in. The other ill conceived notion is that raising minimum wage will increase prices. There is truth to that on a small scale, maybe.
Let’s look at fast food restaurants, for instance McDonald’s has a dollar menu — the dollar menu is fairly universal regardless of the local laws. The dollar menu is the same in Washington State where minimum wage is $9.00 an hour or Texas where minimum wage is $7.25 an hour.
This is a great way to “redistribute” wealth, not through taxation but through wage increases. Americans deserve a portion of those trillions of corporate cash, which they helped create through their labor. Raising the minimum wage forces corporations to unlock that cash and bring it into the hands of the working people.