Proposition B: Minimum wage hike on its way?

Wednesday, November 1, 2006

By Colette Lefebvre-Davis

Nevada Daily Mail

On Nov. 7, voters will choose whether to amend the state's constitution, raising the minimum wage to $6.50 per hour, and changing the minimum wage each year, based on changes in the Consumer Price Index.

Proposition B states that the minimum wage shall be increased or decreased on Jan. 1, 2008, and on Jan. 1 of successive years, by the increase or decrease in the cost of living. It also states that on Sept. 30, 2007, and on each successive year the director shall measure the increase or decrease in the cost of living by percentage.

Supporters of the raise in minimum wage, like the group Give Missourians a Raise, stand firm in their stance that it is a benefit to the individual workers. The group denounces the mindset that hard work prevents poverty. They point out that it has been over a decade since Missouri's minimum wage was increased. The last time it was increased was in 1996 when Congress voted to raise the minimum wage for all Americans from $4.25 to $5.15 an hour. The group also cites the increase in cost of living expenses, stating that the current minimum wage is at its lowest value in more than 51 years. These statistics are refuted by opponents of the bill that state an increase in the minimum wage could lead to job loss and inflation. Opponents also say that Proposition B would undermine Missouri's ability to attract further capital., especially in counties that border states with a lower minimum wage.

State Rep. Barney Fisher, 125th District, who is seeking to retain his seat this November, says it's a bad idea, in that it shouldn't be tied to the Consumer Price Index but to productivity. As it is, he believes it's a recipe guaranteed to boil up a recession.

But proponents offer more facts, saying that 22 states have already increased their minimum wages and citing that according to the Missouri Office of administration, the Department of Budget and planning, raising the minimum wage will also generate between $3.3 million and $4.3 million in new revenue, because workers will have money to spend. This new revenue, will help fund health care, education, and transportation programs.

"Proponents of minimum wage hikes contend that the attendant job loss is minimal and worth it, but they are ignoring the fact that it is almost exclusively low-skilled adults who lose their job," said Mike Flynn, director of Legislative affairs at the Employment Policies Institute. "Minimum wage hikes end up hurting the very people they are intended to help jeopardizing the jobs of those most in need of assistance." Minimum wage is currently touted as destroying jobs, this is according to the Employment Policies institute, a non-profit organization. In a recent press release they state that they have managed to find a mere 650 economists that agree with Proposition B. They then sought an unknown survey conducted by the University of New Hampshire that reveals 77 percent of labor economist believe that minimum wage hikes have a negative effect upon employment. This and other surveys were cited by the institute as confirming that low-skilled adults suffer considerable job loss following minimum wage hikes.

However, other studies show conflicting information. Tim Wells, a Democrat seeking election to the 125th District seat, favors a minimum wage increase and said in a recent debate that if the people have more money, they spend more in the community.

The proposition is one of many that are currently being debated. On Nov. 7, Missouri voters will go to the polls and vote on whether or not, to raise minimum wages. For more information visit www.givemissouriansaraise.com or www.vote-smart.org.

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