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View Diary: Obama again presses for minimum wage rise in weekly address (52 comments)

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  •  That's not how it has worked in the past (3+ / 0-)
    Recommended by:
    gramofsam1, TexasTom, TheLizardKing

    When the federal minimum was raised in the past, those up one rung on the ladder were given increases as well.  It reverberated all through the wage scale, actually is known as the "ripple effect".

    Take California as an example:

    http://money.cnn.com/...

    That's what economists call a ripple effect, meaning an increase in the minimum wage spills over to higher wage brackets.

    On Jan. 1, 13 states raised their minimum wage (by varying degrees), and on July 1, California will increase its by $1 an hour.

    As a result, the Economic Policy Institute estimates about 4.6 million workers will see their wages increased, 2.6 million of whom are directly affected as the new minimum wage exceeds their current hourly pay. The other 2 million already make slightly more than the new minimum wage but will benefit from the ripple effect.
    And it could well be the entire country that sees an increase soon. Congressional Democrats and President Obama are pushing to raise the federal minimum wage from $7.25 an hour to $10.10 by 2015.

    Some info here on the Job loss myth:

    http://www.raisetheminimumwage.com/...

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