President Obama said on Tuesday evening that he will raise the minimum wage for new federal contracts to $10.10 per hour. And, in the case that a Democratic proposal to raise the national minimum to the same level or where state governments haven’t already raised the minimum (as 14 states have this month), the President urged private sector employers to take the initiative to raise wages on their own.
Many argue that the federal minimum of $7.25, unchanged since 2009, is not a living wage in the current economy. With the average price of a gallon of gas at $3.28 and a gallon of milk at $3.50, it’s hard to imagine how the 2 million or so people who earn that wage are able to support themselves, let alone families. MIT’s living wage calculator and anecdotal reports, including one describing a Hartford, Conn., Dunkin’ Donuts manager with three children, indicate they simply can’t.
A CBSNews report this week pointed out that “adjusted for inflation, $7.25 an hour is 23 percent lower todayRead More »from Would Minimum Wage Hike Help or Hurt Small Business?