Minimum Wage and the National Debt

Minimum wage is being raised across the nation and is effective July 29, 2009. This will be the third increase on minimum wage since 2007. The United States Wage and Hour Division enforces some laws like minimum wage, youth employment, overtime pay, worker protections and other laws or programs. So starting July 29th nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour. Some people welcome this increase and that is great. However, this is a sign of how our economy is really doing.

Is it possible that the mandated raise will force small business owners to lay off workers? Prices have already gone up on just about everything. It seems everything is at a higher rate. Groceries and gas are constantly having price changes. Buying a car is not really affordable. If you can pay $13,000 or more, in cash, for a car your doing well. Plus it is almost impossible for someone with good credit to get a home loan. Yes there are great deals right now on first time buyers who are buying a home. That is not going to help those of us who are just trying to keep what we have already. As long as our economy is in debt and unstable there is no room for growth. I am aware of the stimulus packages that Obama has passed, but that is not going to help me or my fellow Americans very much. Although minimum wage is raised it just proves that the cost of everything is higher as well.

Did you know there are five states in the United States with no minimum wage law? These states are Louisiana, Mississippi, Alabama, Tennessee, and South Carolina. There are 28 states that are above the average minimum wage law. Those states that are above average have a higher cost of living and some of those states have their own debt problems. Yet, Wyoming, Kansas, Arkansas, Minnesota, Wisconsin, and Georgia are states that are lower than the average minimum.

Given the present situation we are now living in the raise of minimum wage seems like a bad idea. We already have a higher unemployment rate. A higher national debt, which last time I looked was 11 trillion dollars. If the health care reform happens that will raise the national debt even more. Mandating higher wages, at this time, could force some employers to cut jobs. No matter how you look at it $7.25 per hour is not going to cut the debt you now have on your shoulders. In fact, if you make $7.25 and hour your at the poverty level already. Which should speak volumes about our country and where we are headed.

Resources:

United States Department of Labor

http://www.usdebtclock.org/

NPR- National Public Radio