Minimum Wage Rises This Month

On July 24th, the federal minimum wage will rise from $6.55 an hour to a "lofty" $7.25 an hour. This will only affect 29 states, since 14 states already have a minimum wage higher than that (see chart at left) and another seven states are already at the $7.25 level.

The new level is still sadly inadequate for anyone trying to pay their own way, and totally inadequate for anyone with a family. In fact it is below the federally-designated poverty level. But I'm sure that won't stop the wailing, crying, whining and gnashing of teeth of Republicans and their business masters.

I'm sure we'll hear all the old and already discredited lies about how this will cause employers to lay-off employees and maybe even go out-of-business. Frankly, any business that cannot afford to pay their employees $7.25 an hour is already in dire financial straights and I doubt anything could save them.

Of course the Republicans will also try to use our ailing economy as a reason to delay or do away with the new minimum wage. Some of them have already started mouthing this new excuse to abuse workers.

John Lonski, chief apologist for Moody's Investors Service, says, "You wonder if this might be a little too much for certain employers to shoulder, especially in a time that's been marked by a decline in business sales. This might actually delay the return of job growth."

They want us to believe that outrageously high executive salaries and bonuses are good for the economy and business growth, but paying an employee a poverty-level wage will hurt the economy. That makes no sense, but they're not in the business of making sense. They're in the business of reporting ever larger profits, even if they have to abuse their workers to do it.

The fact is that every bit of the extra $28 a week that these minimum wage employees will make will be spent. These people aren't making enough to live on as it is, so the money will not be saved or tucked away (like it would be to give more to the rich). And since it must be spent, the chances are good that it will actually help the economy.

I really think $7.25 an hour is too small a minimum wage (and 14 states already agree).