Sunday, June 19, 2011
Living wage debate in NY: Replace the Minimum Wage with a Living Wage
Personally I'm against the Minimum Wage and before you accuse me of being a conservative or libertarian, let me explain why. For the simple reason that it doesn't pay enough and people with just one job making Minimum Wage without any other income, can't live on it. If you believe in a Safety Net as I do and not a Welfare State as I do as a liberal. You believe that there should be floor in the economy that no one should have to live under. And the Minimum Wage in America is under that floor, especially if you live in large Metropolitan Areas like Washington, New York, Miami, San Francisco, Los Angeles and others. What I'm am a for is what's been called a Living Wage that would mean that Minimum Wage workers would get a large Pay Raise, that wouldn't put them in the Middle Class on its own. But would make their lives a hell of a lot easier and would also encourage people on Welfare and Unemployment Insurance and give more incentive to work or go back to work. Because they would end up making more money making the Living Wage then being on Welfare or Unemployment Insurance. But this wouldn't just help Low Income workers but the economy as a whole. Because these people would automatically end up making more money. Which they would spend right away because they aren't making enough money on their own to begin with. And this money would automatically go into the economy, which would create Higher Demand which would result in more Economic and Job Growth to meet the new Higher Demand.
The current Federal Minimum Wage is around 7.15-25$ an hour, I apologize for not knowing the exact Minimum Wage but thats real close. I would get rid of the Minimum Wage and replace it with a Living Wage that would be around 10$ and hour. Or move it up to what the Minimum Wage was in 1970 and Index it for Inflation. Where it would be around 12$ an hour in 2011 dollars. And I would Index for Inflation the Living Wage indefinitely. And allow employers to deduct 30% of that cost from their taxes so their Payroll Costs don't go up. This would be an example of a good War on Poverty program that works because it would be encouraging Low Income people to work instead of collecting Government Checks.
Click on the link of the blog to see a video about the Living Wage proposal in the Empire State