Monday, January 24, 2005


Dems want to raise hourly minimum wage to $7.15 over two years
LANSING, Mich. (AP) -- Democrats in the state Legislature want to raise Michigan's $5.15 minimum wage to $7.15 over two years, the first increase in seven years.

House and Senate Democrats on Monday plan to announce a package of bills that would increase the state minimum wage by 75 cents in July, 75 cents in January 2006 and 50 cents in January 2007 to bring it to $7.15, The Associated Press has learned.

The proposal also would tie future state minimum wage increases to the rate of inflation so the minimum wage could rise without legislative action.

House Minority Leader Dianne Byrum, D-Onondaga, said Michigan needs to join a growing list of states that have taken the wage issue into their own hands to counter Congress' refusal to raise the federal minimum wage. The federal rate last increased in September 1997.

Since the federal government last increased the minimum wage in 1997, inflation has reduced the purchasing power of the $5.15 hourly wage in Michigan by 16 percent, making it equivalent to $4.33, according to a recent report by the Lansing-based Michigan League for Human Services.

Nice try, but not gonna happen, kids. We wouldn't want to scuttle Betsy DeVos's dream of making Michigan a low-wage state. {/sarcasm}

A search on this brought up an interesting article from 1999- seems this was introduced before. In 1997 the feds raised the rate, Engler said it would "kill job growth"- it did not. The state gained employment. BUT- that was then, in a growing economy. What effect would it have now? Not sure. According to the Freep article, only 3% of Michigan workers make minimum wage as it is- most companies start well above that anyway. How would it stifle growth when companies already are offering starting wages above this level?

Still, it would make the Dems look good. Future ammunition to use. :-)