> es Is It Time to Raise > the Minimum Wage? Kf you're in high school and have a part-time job, the chances are good that you're being paid the minimum wage Since the last increase in the fed- eral minimum wage to $7.25* an hour in 2009, Infiation has been eating awey at its buying power. Today's minimum wage workers are better educated and mare productive than ‘thelr predecessors, but their wages are less adequate for meeting thelr needs. A worker employed fulltime at the minimum wage would earn $15,080, nearly $3,500 less than the federal poverty level for a family of three. [As we slowly recover from the worst economic down- turn since the Great Depression, corporate profits are soaring, but American work: ers continue to be left behind. Increasing the minimum wage would help put American famiies on a more solid economic path. It ‘would also move the U.S. toward ‘model of greater shared prosper- ity, where workers can improve thelr ving standards. through Increased earnings rather than through increased debt. Minimum wage workers are mainly adults who work many hours and lve in low-income households. Of the workers who directly benefited from the last minimam wage Increase, more than half belonged to familfes with a combined Income of less than $35,000 a year. Contrary to popular belief, Increasing the minimum wage does riot cause significant Job loss, Economists broadly agree that the Impact of a minimum wage Increase on jobs Is very small. Moreover, Increasing the minimum wage benefits the economy, tt puts additional income into the hands of workers who often struggle to make ends meet and therefore are very likely to spend that extra money. This {s excellent stimulus for the econamy, precisely when ‘our economy needs it the most. « DOUGLAS HALL Economic Paticy Institute a eT TE TTT TS SIT ‘Teens in the job market are facing a very NO ec in the minimum wage would only make things worse. The issue boils down to a law of physics that also applies to economics: For every action, there Is an equal and opposite reaction. It the government mandates that a business must pay its employees a higher wage, the additional cost will have to be offset somehow. t's hard for any business to raise prices right now because the economy Is so slug ‘lsh, but it's a particular problem for small businesses, which operate on slim profit ‘margins to stay competitive, If they can't raise prices, an Increase in the minimum wage would force employers to react by cutting workers’ hours, lay- ing people off, and leaving open positions vacant rather than hiring new workers, The Impact will be on job seekers, who will find a fot fewer jobs available as a result. That's obviously bad news for People entering the job market, particularly teens and young adults with litte experience who atten compete for entry-level positions that pay the minimum wage, In other words, ralsing the minimum wage would end up hurting the very people It's designed to help. ‘Small businesses are the embodiment of the Amerl= can dream=the ides that anyone can create a sai business from scratch—and they're responsible for a large chunk of the country's new-Job creation, These businesses already go to great lengths to make sure thelr employees are compensated faty. A higher mini- ‘mum wage will make tt harder for them to create jobs, and that’s not good for Job seekers, business owners, or the communities they both entich, « , ~OAN DANNER (National Federation of independent Business