The federal minimum wage was raised from $6.55 to $7.25 last Friday. For affected workers, this means employers are about to decide, on an individual basis, whether to grant the raise or eliminate the job. Those on the “wrong” side of that decision will now have the opportunity to see, up close and personal, what it means when unemployment rises. The Associated Press reports, “More than 90 percent of the nation’s largest metropolitan areas saw their unemployment rates climb in June from the previous month.” Raising the minimum wage won’t help.
The Department of Labor says a full-time minimum-wage earner (one who manages to stay employed, we might add) can expect an extra $120 a month. What might a full-time minimum-wage earner do with all that extra money? The Department of Labor has the answer: extra groceries, more gas or (no kidding) replace every light bulb in the house with compact fluorescent light bulbs, “which would save the family money in the long term and be an important step toward a greener country.” Because what American home doesn’t need more compact fluorescent light bulbs? And what was that about buying extra gas, then?
No instructions yet on what those who lose their jobs due to the higher minimum wage should do with their sudden summer vacation. Based on the DoL advice we have seen, maybe that’s a good thing.
