President Obama has proposed raising the federal minimum wage to $9 an hour, from $7.25. This will benefit unions, which will eliminate some low wage earner competition, and also put out of work some low-skilled individuals.
Below is a chart of current minimum wages at the state level.
There are 4 states that have a minimum wage set lower than the federal minimum wage. There are 19 states (plus DC) with minimum wage rates set higher than the federal minimum wage. There are 22 states that have a minimum wage requirement that is the same as the federal minimum wage requirement. The remaining 5 states do not have an established minimum wage requirement.
Federal minimum wage law supersedes state minimum wage laws where the federal minimum wage is greater than the state minimum wage. In those states where the state minimum wage is greater than the federal minimum wage, the state minimum wage prevails.
(via WSJ)
This'll do wonders for the unemployment rate.
ReplyDeleteHoover did this. How did that work out for you, Mr. Hoover?
Minimum wage is so misleading. What about the fringe benefits? What about the taxes that scalp wages?
ReplyDeleteNah, let's just myopically focus on an arbitrary government administered price floor.