Tuesday, October 8, 2013

Will California’s $10-per-hour minimum wage push other states to act?

http://www.csmonitor.com/USA/Politics/2013/0926/Will-California-s-10-per-hour-minimum-wage-push-other-states-to-act

It is no coincidence that California has one of the highest unemployment rates of any American state. They have increased the minimum wage to  $10 per hour. If an individual can make $10 an hour working at a fast food restaurant, then the incentive to ever achieve higher education decreases. Also, lets remember that in order for an individual to benefit from those wage increases, he or she must be employed. Since California's unemployment rate is so high, its increase in minimum wage is less beneficial to the poor working Americans than an increase in many other states would be. If there is less incentive to get a good education, isn't the law simply making our future population less educated?

Also, the skills of workers are remaining the same. Workers in California are simply being paid more for low skill jobs. Those with high skill positions did not see an increase in wages. It is a push to cut the income gap, but by cutting the income gap, eventually you will cut the skills gap, and then everybody will be the same. Who wants that? The article does say that a minimum wage job brings in a yearly salary of $15,080, which is $50 below the poverty level FOR A FAMILY OF TWO. First of all, if it is a family of two adults, even two positions at minimum wage puts them well over the poverty line. If it is a single mother (or father: equal rights equal rights) with a child, she/he receives tax credit that equates the wage to around $9.75 per hour. So how many minimum wage workers are really living in poverty?

- David Gerhart

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