I’m sure that you have heard the ongoing national debate concerning fair wages and the increasing of the federal minimum wage. As with many other issues the pros and cons are argued on the news channels, in boardrooms, on the internet and throughout the political arena. Things get messy and confusing.
So, let’s take a look and see what some people are saying
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Federal Reserve Chair, Janet Yellen has stated that the central banks goal is to “help Main St. not Wall St.”. The Federal reserve is concerned about slow wage growth and that 7 million of the people employed in the US are part-timers. Yellen went on to suggest that, “in many ways, the job market is tougher than in the recession.”
Graphic: The Federal Reserve Bank of Chicago/ The Huffington Post
On the other hand, the National Retail Federation’s Senior Vice president for Government Relations, David French, said in a letter to the Senate that, “Raising the standard of living for low-skilled, low-wage workers is a valid goal but here is clear evidence that mandated wage hikes undermine the job prospects for less skilled and part-time workers.” He goes on to explain the that policymakers have other tools, such as :
increasing the Earned Income Credit
fixing the tax code
Improving education
immigration reform
transportation funding
strong trade alliances
In other words, we should raise the standard of living for low-wage workers….as long as their employers are not involved.
Graphic: Bill Marsh/ The New York Times
That certainly is not the mindset of Starbuck’s CEO. Howard Schultz. He told Poppy Harlow of CNN, “I applaud the President for taking a stance on raising the minimum wage.” He goes on to explain that he doesn’t believe that the change would increase the price of your cup of coffee.
Graphic: Economic Policy Instituts
I believe that for us to achieve a healthy economy with a lower rate of poverty and dependence on programs such as Medicaid and food stamps that we need to see that our workers have a chance to earn an equal and fair wage.
To Learn more about Democratic Candidate for the U.S. Congress in Florida’s 11th District Dave Koller, visit: www.davekoller.com