More on raising the minimum wage

The following excerpt from the U.S. Department of Labor’s website (www.dol.gov) provides an excellent overview of some of the common objections to raising the minimum wage. While these are just one commenter’s views, it is important to keep an open dialogue and provide citizens with information on the subject.

The president's plan to raise the federal minimum wage will benefit 15 million American workers, and have a positive effect on the economy. Still, there are some common myths about raising the minimum wage. We checked in with our Chief Economist Jennifer Hunt on the following three myths:

Myth: Raising the minimum wage reduces employment. False Minimum wage increases have little or no adverse effect on employment as shown in independent studies from economists across the country. Additionally, a recent letter by leading economists including Lawrence Katz, Richard Freeman, Joseph Stiglitz and Laura Tyson points out that "[i]n recent years there have been important developments in the academic literature on the effect of increases in the minimum wage on employment, with the weight of evidence now showing that increases in the minimum wage have had little or no negative effect on the employment of minimum wage workers, even during times of weakness in the labor market.

Myth: Only part-time workers are paid the minimum wage? False Fifty-three percent of all minimum wage earners are full-time workers.

Myth: Raising the minimum wage will negatively affect teen employment. False Eighty-nine percent of those earning the minimum wage are 20 years of age or older, and studies have shown that minimum wage increases have had little or no adverse effect on teen employment.

Obama Calls for Minimum Wage Increase

During Tuesday night’s State of the Union address, President Obama made a call to Congress to raise the federal minimum wage from its current rate of $7.25/hour. Speaking emphatically regarding the current state of the low wage worker, the President said,

“We know our economy’s stronger when we reward an honest day’s work with honest wages. But today, a full-time worker making the minimum wage earns $14,500 a year. Even with the tax relief we’ve put in place, a family with two kids that earns the minimum wage still lives below the poverty line. That’s wrong. That’s why, since the last time this Congress raised the minimum wage, 19 states have chosen to bump theirs even higher. Tonight, let’s declare that, in the wealthiest nation on Earth, no one who works full time should have to live in poverty -- and raise the federal minimum wage to $9 an hour.”

Check back for updates on any congressional action taken in relation to the President’s challenge.

Chicago cracks down on wage theft

Arise Chicago, an organization focused on building partnerships between faith communities and workers in the Chicago area, successfully ushered in a new anti-wage theft ordinance which is to take effect this summer. The ordinance passed the City Council by unanimous vote. The ordinance allows the city to suspend or revoke a business license of businesses who violate the Illinois’ Wage Payment and Collection Act.

The Ordinance comes after a University of Illinois study finding wage theft rampant in Chicago car washes. http://www.wbez.org/news/study-wage-theft-rampant-chicago-car-washes-102562

Visit http://arisechicago.org/ for more information.