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It’s past time to raise the minimum wage

Posted By Rob Schofield On August 14, 2012 @ 2:23 pm In Uncategorized | Comments Disabled

[1]If we updated FDR’s statement at left it might go like this:

“Do not let any calamity-howling executive with an income of $40,000 a day,…tell you…that a wage of $392 a week is going to have a disastrous effect on all American industry.”

And a new study released today by the Economic Policy Institute [2] provides lots of hard numbers that demonstrate just how beneficial a hike in the federal minimum wage from $7.25 to $9.80 would be (both to average families and the economy as a whole).

Key findings include:

-Increasing the federal minimum wage to $9.80 by July 1, 2014, would raise the wages of about 28 million workers, who would receive nearly $40 billion in additional wages over the phase-in period.

-Across the phase-in period of the minimum-wage increase, GDP would increase by roughly $25 billion, resulting in the creation of approximately 100,000 net new jobs over that period.

-Those who would see wage increases do not fit some of the stereotypes of minimum-wage workers.

  • Women would be disproportionately affected, comprising nearly 55 percent of those who would benefit.
  • Nearly 88 percent of workers who would benefit are at least 20 years old.
  • Although workers of all races and ethnicities would benefit from the increase, non-Hispanic white workers comprise the largest share (about 56 percent) of those who would be affected.
  • About 42 percent of affected workers have at least some college education.
  • Around 54 percent of affected workers work full time, over 70 percent are in families with incomes of less than $60,000, more than a quarter are parents, and over a third are married.
  • The average affected worker earns about half of his or her family’s total income.

You can read the entire report by clicking here [3].


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URL to article: http://pulse.ncpolicywatch.org/2012/08/14/its-past-time-to-raise-the-minimum-wage/

URLs in this post:

[1] Image: http://pulse.ncpolicywatch.org/wp-content/uploads/2012/08/FDR-Minimum-wage.jpg

[2] a new study released today by the Economic Policy Institute: http://www.epi.org/files/2012/ib341-raising-federal-minimum-wage.pdf

[3] by clicking here: http://www.epi.org/publication/ib341-raising-federal-minimum-wage/

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