State legislature should increase minimum wage
If there is one point of unquestioned agreement between liberals and conservatives, it is the value of work.
As a nation, we value this so much that we have a national holiday, Labor Day, to celebrate work, and we have a federal tax policy — the Earned Income Tax Credit — to reward workers even when they make poverty-level wages.
Why not honor work with better wages?
That’s the point of raising the minimum wage.
House Speaker Greg Stumbo, D-Prestonsburg, has proposed an increase in Kentucky’s minimum wage, at $7.25 since 2009, to $10.10 over three years. That would mean that a person working full-time, year-round would earn $20,200 before taxes and deductions.
It’s not a luxurious living, but it is an affirmation of the value of labor and laborers that the Kentucky General Assembly should adopt.
Opponents of raising the minimum wage generally rely on two arguments: It will cause employers to cut jobs because of increased costs and it will have little impact on struggling families because most minimum-wage workers are middle-class teenagers earning spending money.
There is virtually no research to support the first contention, despite hundreds of studies since the first federal minimum wage (25 cents an hour) went into effect in 1938.
Some studies show slight job losses; some show gains as more money moves into the economy with wage increases. There is virtually no evidence of significant or enduring negative impact on employment in the 75 years since minimum wages have been in effect in this country.
It is also worth mentioning that low-income workers spend money carefully.
The Bureau of Labor Statistics reports that families receiving public assistance spend about 75 percent of their income on essentials: food, housing and transportation. And they spend more of their food dollars on meals eaten at home than do wealthier families.
Politicians talk about the importance of creating more high-wage jobs in Kentucky. But the reality right now is that the only jobs for many hardworking Kentuckians are in low-wage industries.
It’s right to honor their work with a higher minimum wage.
— Lexington Herald-Leader
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