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Report states increasing minimum wage would help economy


SEPTEMBER 2014, LEHIGH VALLEY Edition of The Union News

Report states increasing minimum wage would help economy


REGION, August 20th- The American Federation of Labor and the Congress of Industrial Organizations (AFL-CIO) labor federation in Washington DC, requested in May that all affiliated labor councils throughout the nation conduct events in their community this summer to push for the raising of the federation minimum wage. The federation announced in the spring that it supported increasing the bench-mark to $10.10 an hour, which President Obama had proposed in his “state-of-the-union” address earlier this year.

The current minimum wage, which covers most workers employed within many industries excluding some retail and service establishments and farms and also employ students at wages of no more than 15 percent below the minimum with proper certification, is $7.25. The federal minimum wage has not been raised since 2009.

The AFL-CIO has been lobbying Washington legislators and organizing rallies supporting the raising of the federal minimum wage under the Fair Labor Standards Act (FLSAct).

Many states have increased their minimum wage above the federal bench-mark including New Jersey, Maryland and New York. However, anti-worker Pennsylvania Republican Governor Tom Corbett has made it clear he does not support increasing the wage. He has been lobbying fellow Republicans to not support the increase of the hourly wage, stating the higher wage would harm Pennsylvania’s economy.

There are 19 state’s and the District of Columbia that have a higher minimum wage than the federal standard. New Jersey’s minimum wage increased in January to $8.25 an hour.

Meanwhile, according to data released by the Department of Labor on July 18th, job growth in the 13 states that have increased their minimum wage has been more robust than states that have not. Average job growth in states that have increased the benchmark was 0.85 percent this year while in states that have not increase their wage was 0.61 percent.

The anti-increasing of the minimum wage supporters in Washington, mostly made-up of Republicans and business groups, have stated that according to a new study the American economy would be hurt by increasing the bench-mark and as many as 500,000 jobs could be lost should the wage be increased to $10.10 an hour.

However, the same report suggest that more than 16.5 million American workers wages would be increased, producing an overwhelmingly positive impact for the economy by giving those workers more money to spend on their families and themselves, increasing their purchasing ability which would benefit local and the national economies.