President Obama wants to raise the minimum wage. He has already used an executive order to establish a new minimum wage of just over $10 for workers on government contracts, but now he wants to go a step farther.
The president and many democrats in Congress want to raise the federal minimum wage for all workers to $10.10 an hour. This is more than a 28 percent increase and the president wants it to take effect by 2016. Now some states have higher minimum wage laws, but I don’t think they are dramatically higher than the current wage of $7.25.
But what is troubling is that the president has not offered any ideas on how businesses should pay for the forced increase. You don’t have to be a CPA to know that in most cases, forced higher wages would be passed on to customers. So could the economy suffer as a result of this dramatic increase? It sure has the potential to do so. Can you imagine paying an additional ten or even 15 percent more for products or services delivered by minimum wage positions?
Now, I am not against anyone making a good living in America, but raises should come over time, based on performance and should not be guaranteed. Additionally, the Congressional Budget Office estimates the move the president is proposing will lift 900,000 out of poverty, but will also cost 500,000 jobs, so what is the real gain? Leave the minimum wage alone and let the free market dictate a reasonable minimum wage. It makes sense economically and will make for a Better East Texas.
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