Minimum wage going up 10 cents

Democrats in Washington want to bump minimum pay to $10.10.
Tom Jackson
Dec 27, 2013
Ohio’s minimum wage will go up 10 cents Jan. 1, thanks to Ohio voters who approved a state question years ago to include cost of living adjustments.

Ohio workers may get another pay hike in the future if Congress approves a minimum wage boost backed by President Obama. The U.S. House is controlled by Republicans, however, who may block the measure.

According to a report from Policy Matters Ohio, a left-leaning think tank based in Cleveland, Ohio’s minimum wage will go up a dime when the new year begins, to $7.95 an hour. The minimum wage for Ohio workers who receive tips will go up five cents, to $3.95 an hour.

In 2006, Ohio voters OK’d a ballot initiative that raised the state’s minimum wage and provided annual hikes to keep up with the cost of inflation.

Democrats in Congress have proposed the Fair Minimum Wage Act of 2013, which would raise the minimum wage to $10.10 by 2015, in three steps of 95 cents each. It would also be indexed, starting in 2016, to keep pace with the cost of living.

U.S. Rep. Marcy Kaptur, D-Toledo, is listed as a co-sponsor of the House version of the bill, while U.S. Sen. Sherrod Brown, D-Ohio, is listed as a co-sponsor of the Senate version. U.S. Rep. Jim Jordan, R-Urbana, and U.S. Sen. Rob Portman, R-Ohio, are not listed as sponsors.

Kaptur has repeatedly said she supports raising the minimum wage, spokesman Steve Fought said”

“She thinks it’s important to raise the minimum wage because it’s long overdue,” Fought said. “The effective purchasing power of the minimum wage has declined severely.

“A lot of people work for minimum wage and they can use the increased purchasing power,” Fought said. “It’s also important because it sets a base for wages in general and would help other people who are making above minimum wage”

Brown released a statement earlier this year on why he supports hiking the minimum wage.

“Working full-time in a minimum wage job in Ohio pays about $16,000 a year — which isn’t much to live on when you’re trying to put food on the table, fill your gas tanks, send your children to school and provide a safe place for them to live. Ensuring a fair wage is good for middle class families and good for our economy” he said.

U.S. Rep. Jim Jordan’s spokeswoman was out of the office Thursday and could not be reached for comment. A phone call Thursday to Portman’s press office wasn’t returned.

Conservative economists generally argue that raising the minimum wage hurts workers who have poor job skills by making it harder for them to find employment.

“Even studies that find the minimum wage has negligible overall employment effects find it decreases the employment of disadvantaged workers” said James Sherk, a policy analyst for the Heritage Foundation, during June testimony before a Senate committee.

“Kevin Lang and Shulamit Kahn of Boston University examined how restaurant employment changed after minimum wagehikes in the late 1980s and early 1990s. They found no evidence that the minimum wage reduced total restaurant employment, but they did find that it dramatically changed the mix of workers that restaurants hired. Teenage and student employment rose, while adult employment dropped” he said.

“A higher minimum wage is great news for a high school student working part time to buy an iPhone. It hurts lower-skill adult workers who need work to support themselves and perhaps their families. Making entry-level jobs less available makes it harder for them to gain the skills and experience necessary to advance to better paying jobs. The minimum wage effectively saws off the first rung on their career ladder” Sherk said.

Whether Ohio’s minimum wage law remains relevant depends on what Congress decides to do, said Amy Hanauer, executive director of Policy Matters Ohio.

If federal lawmakers do nothing, Ohio’s law will continue to affect many workers. If Congress raises the minimum wage but doesn’t include indexing, Ohio’s minimum wage eventually will overtake the federal minimum. But if federal lawmakers raise the minimum wage to $10.10 and also index it, Ohio’s minimum wage law will become irrelevant, she said.

Comments

Good 2 B Me

Sadly, a higher minimum wage means that companies will raise prices in order to pay for it. It happens every time!

FlyBoy86

Not the case...

Good 2 B Me

Sure is. Look at the prices of groceries. Follow them with the minimum wage increases. It sucks, but it does happen. That and the people making slightly higher than Minimum Wage do not get raises, they just get closer to the lower end of the pay scale. :(

Good 2 B Me

BTW, I am talking about the Federal Minimum Wage that they are talking about bringing up to $10.10, not the $.10 Ohio increase.

pntbutterandjelly

Let's do the math....
$16k is a gross figure. Now deduct all taxes before they receive their net pay. Typically that would be an end net of around $12k. So that means they have $1k per month for all expenses. Now...let's figure they are renting and that amounts to $400.00, eat 3 home cooked meals for another $10.00 per day ($300 per month, own their own auto outright (no payments) but need, on average of $50.00 per month for repairs, gasoline purchases (factored at 15k miles {national average} per year at 20 mpg (x) $3.00 per gallon divided by 12 months) =(+-) $200.00 per month, have utilities (electric, natural gas/propane/telephone, TV-Internet) overall amounting to $200.00 per month for grand total expenditures of (NOT including; auto insurance, health insurance, medications, apartment insurance, entertainment, clothing, tithing, INFLATION, etc.) $1,150.00 OR $50.00 left to cover the above that was NOT factored in. Now then...how are they to help spurn the economy and hence you too, get a rung up the financial ladder of the good `ol USA or...pay for all the "incidentals" that were not included in the above calculation? Better yet...how many of you making more than "minimum" wages would like to try to "LIVE" on it? Hmm?
Too many people complain about the unemployed being "lazy" or aren't pulling their fair share. So...why wouldn't we all WANT to help those who ARE trying but are held back by Corporate America's ploy to make more and more profits (read "control")ONLY for themselves and their shareholders by suppressing anyone and everyone they can including the working poor, middle class American and the elderly to name few???

The VAST American population is being suppressed by Big Oil, Big Insurances, Big Pharmaceuticals, Big Medical, Big Banks and Big Profits. This insatiable vortex is swallowing our country down deep into the bowels by the Big Sucking Sound called "Big Greed".

`Ya better wake up to the realities of the New American Enterprise System and New World Order. It and they are coming to take what all you have worked for and they really don't care who you are. In fact...they will eat each other's lunches to make a buck. "Free Markets" without restraints is the freedom to rip off whomever, whenever, wherever and however.

Support those who are actually working and producing a product or service NOT those who produce only wealth for themselves.

Our Democracy's ship is listing badly on the Starboard side and we need to right her soon before it's too late. (I talking to YOU!)

Have a lovely day.

Contango

Re: "The VAST American population is being suppressed by Big Oil, Big Insurances, Big Pharmaceuticals, Big Medical, Big Banks and Big Profits."

Why do public ee. pension trusts (like Calpers, Calsters, SERS, et. al) invest hundreds of billions of dollars of their assets in these and other corps. for the benefit of their pensioners?

Do you personally have any invested retirement assets and do you expect a rate of return?

pntbutterandjelly

The average pay scale for an "undocumented" (read: Illegal) crop picker is $4.50 per hour (gross). How many of this readership would be willing to pay a legal American worker the minimum wage to do the same job AND at the same time (A) generate better paying jobs to help replace the 11 million jobs stolen by Corporate America and sent overseas, (B) create a better tax base for all government levels (C) spurn our economy as a whole, (D) get many unemployed Americans off the welfare roles, (E) give those same working families their pride back as well as an opportunity to move up the ladder of the Great American Dream? OR....would you rather pay less (very little less by the way) for your fresh-picked fruits and vegetables and blame some working stiff for our economies woes? If your answer is "no", then you obviously are attempting to help with the Great Downward Spiral of our standards of living.

Our free market enterprise system worked and worked very well for every American who was able (and willing) post WW2 and through the 1970s. Everyone was pulling their fair share and "life was good". Now...large corporations have figured out how to "game the system" (read: pay the lobbyists, politicians, et. al.)for their sole monetary benefit and leave so many Americans behind in their shameful dust. We NEED to get back to those former times of opportunity and prosperity for everyone rather than suppression of the masses.

Let's all pay an extra nickel for our apples, $10.00 as a minimum wage and watch our economy's engine shift back into 4th gear.

Let's NOT allow those who have reaped so much during these days of economic depression divide we working-class Americans who have historically been the real spine of America's future. "United we stand and divided we fall" are more than just words.

Contango

Re: "Our free market enterprise system worked and worked very well for every American who was able (and willing) post WW2 and through the 1970s."

After WW2, the U.S. was the only major industrial power left untouched by the ravages of war.

That "golden age" has ended. We now live in a global economy with numerous (and growing) competitors.

You can't put the jinn back in the bottle.

AJ Oliver

That need not be the case. If folks' productivity goes up with their wages (as is has), there need not be any impact on prices.

Nor'easter

Minimum wage increase = less hours = inflation = more retirees living below poverty line.

KnuckleDragger

While it may not cause prices to go up much it does nothing to help those it is intended to help. Minimum wage is nothing more than a "price control." How well did price controls work in countries such as the former Soviet Union? In fact there are a couple of studies one in 2007 done by an economist at the University of California at Irvine that found that minimum wage hikes actually hurt low wage workers. Then there is the 2010 study that found a higher minimum wage drove down GDP in low-skilled industries. While the window dressing may look good, what it does is cover the rotting window behind it, it doesn't fix the window. There are other ways to help low skill workers obtain a living wage however politicians do not want to bother because they are simply out to hang window dressings because something that looks good superficially is easy to do and will help them retain their office. Unfortunately, many of the minions do not have enough sense to know they are being duped.

tennisgirl05

What about the folks who already make over minimum wage? Cost of living has increased, but my wages have not in 3 years???

AJ Oliver

Sorry to hear that Ms. Girl. Lots of jobs around here are paying less than they did 4 or 5 years ago - in nominal dollars even, not inflation adjusted. Rember, the purpose of an economy is to serve people, not the other way around. Even 58% of Republicans support raising the minimum wage, for Pete's sake. And to answer your question, when min wage is raised, those with wages near that level also get raises - as well they should.

KnuckleDragger

Unfortunately in an economy based heavily on consumption it appears that just the opposite is the case.

Contango

Democracies tend to inflate their way out of debt thus paying it off with cheaper currency.

Go ahead, raise the min. wage and you'll NEVER stay ahead of the Fed cheapening the dollar.

Since 2000 inflation has risen 35%.

Wages are gonna need to be raised A LOT in order to catch up with the loss of buying power.

The Big Dog's back

So why don't you right wingnuts feel that way about the 1% who give themselves enormous pay increases every year?

Darwin's choice

You mean the democrats in Congress?

Sam

piddle pup, the 1% wealth has increased under obbie, who by way net worth now makes him part of the 1%...

toredown11

You can argue all you want about Keynesian, Chicago School, Austrian and Supply/Demand-Side economic theories, but here is the bottom line for me and my business:

I sell non-essential goods and my demographics is 19 to 49 year-olds, weighed slightly higher toward men than women, but not by much. The product that I sell is somewhat inexpensive (most of the product is in the $10 to $20 range, but it can go as high as $100). For the past thirty years, I have seen a fairly healthy bump in sales every time that the minimum wage has risen. The benefits of the increase in sales far outweighs the increase in my overhead costs because I'm only having to pay 50 to 100 employees (depending on the time of year) an increased wage, yet the pool of people that have more spending money in their pockets is unlimited with the e-commerce (internet) side of my business. My sales increases are not limited to the e-commerce side; I also see an increase in sales in my brick-and-mortar stores and the increase more than handles the increased overhead there, too (again, my pool of customers is much larger than the number of people that I have to pay).

I imagine that an increase in minimum wage could hurt businesses that are only selling product to a finite clientele (in other words, a set number of customers), but I can't think of too many businesses that fall into that category.

2cents

tore, I have see the opposite. Our product is in the $4.00 to 15.00 range and because it is automotive and can be made elsewhere, we watched a major customer move our parts to China and I had to let go of 10 people because they could save $$. How can me paying my people more bring back that work? by the way I pay my people above that anyway.

toredown11

I see your point, 2cents. I'm selling the end product. I will say that my product costs haven't increased when the minimum wage has increased, but technology advancements have also led to cheaper production costs on their end.

I, too, pay most of my employees above minimum wage, but I always adjust their pay to meet the increase in minimum wage at their review date if their merit raise doesn't bring them up enough.

2cents

I understand but I have major OEM automotive customers demanding price reductions every year as well. It is a disgusting cycle and I am about ready to get out. We had a major supplier of ours just close their doors as of Dec 19 with only two weeks notice. The have been in business over 30 years but with all the restrictions and competition they just said screw it. They let go of about 50 people.

Contango

Re: "major OEM automotive customers demanding price reductions every year as well."

Reminds me:

The U.S. has been offshoring deflation for several decades, while the Fed (and most world central banks) has been waging an uphill battle to increase inflation.

The 1930s were a period of deflation and the recent financial crisis had some deflationary components, e.g. housing, financial assets, et. al.

Deflation causes people to put off purchases due to the expectation of future lower prices, while inflation does the opposite.

Thus, deflation causes a reduction in aggregate demand.

We've lived in a period where we expected prices to just continue to rise yr. after yr. - it ain't necessarily so.

By increasing the money supply, the Fed just put off the day of reckoning of the credit mess & we and all the world economies will eventually revert to the mean.

Contango

Re: "I sell non-essential goods,"

Without specifics your post is anecdotal nonsense.

Increase in wages without comparable increases in productivity = price/wage spiral.

toredown11

Yes, Contango, you obviously know everything about everything. Please tell me how to run my business; for nearly thirty years as a successful businessman I've just been waiting for you to come along and straighten me out.

Non-essential goods = not absolutely necessary (some would call them luxury items). This would NOT include food, drink, shelter and clothing.

And no, I am not a victim of a price/wage spiral. I learned a long time ago that happy employees are more productive employees. The longer someone is with me, the more effective they are at their job. If their effectiveness deteriorates, there is a process in place to coach them and if that fails, they are let go. Fortunately, I don't have much turnover. Treat people right, pay fairly, give them responsibility and usually they'll come through for you.

Contango

Re: "Non-essential goods,"

Allow me to spell it out for you:

Without SPECIFICS as to what these consumer discretionary items are, it's non-verifiable anecdotal nonsense.

Do you offer a "living wage" and also provide rich health and welfare benefits?

toredown11

Oh sure, Contango, let me just put my home address and phone number on here, too!

I have a sneaky suspicion that you're one of those people that never really created anything yourself. Instead, you stand on the sidelines, thinking that you're the smartest person in the room while the rest of us take the chances and actually contribute to society. I've yet to hear anything personal from you - no life experiences at all - only links to websites and quotes from articles that you read.

Contango

"I haven't seen a raise in three years, yet my company's profits are up just as they've been every year since the Great Recession hit. The owners tell us that they're not issuing raises because they're uncertain of the U.S. economy."

- toredown11, 12/24

http://www.sanduskyregister.com/...

And this from the same person who CLAIMS to be a business owner????

Mishegas.

grumpy

Give him a break, it is hard to keep all his stories straight.He is trying as hard as he can to make a life on a newspaper forum. You expect him to keep them all straight? He would except the topics keep changing.

Don S

Has the price of a hamburger stayed the same, even when the minimum wage has not gone up ??? So how are the workers going to afford lunch at the burger palace they work at? Their lunch costs over their hourly wage. Henry Ford had it right, when he paid his workers enough to be able to buy the cars they were building.

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