Opinions split on how hike in wage affects the economy

[Omaha Steve]

http://www.buffalonews.com/145/story/744828.html

Some firms cut staff to cover payroll costs
By Diane Stafford and Tony Pugh
McCLATCHY NEWSPAPERS
Updated: July 26, 2009, 7:37 AM /

The federal minimum wage rose from $6.55 to $7.25 an hour on Friday, bringing with it controversy about whether the increase is good or bad for the economy.

The raise, which affects about 4 million workers nationally, is the third and final increase mandated by Congress in 2007.

For a full-time minimum wage earner, the bump up means $28 a week more.

“When you have low income, any kind of increase in your paycheck is a big help,” said Sharon Davis, a minimum-wage earner who has a clerical job for 4z hours a day.

Her small increase “makes you feel that much better about paying your bills,” said Davis, a senior citizen who entered the work force to augment her husband’s disability income.

But for small-business owners struggling to make a profit, the mandated increase may present problems.

FULL story at link.

[PSPS]

1. If a company can't afford an extra $28/week/employee, it's not a real business.

[doc03]

2. The Republicons raised hell about

Obama limiting CEOs salaries. The Republicons thought the big bonuses were just fine in the financial industries. But noooooo you can't give someone on minimum wage a 70 cent raise the economy will collapse on that one.

[clear eye]

3. Pass single-payer and take the burden of insurance from the small businesses

That would more than take care of it.

Also, what about larger businesses? what excuse do they have for complaining?

[defendandprotect]

4. Opinions may vary, but the evidence that it creates jobs seems clear . . .

[DailyGrind51]

5. Yet, when CEOs and investment bankers get multi-million dollar bonuses, there is never a problem.

[Buck Laser]

6. Right wingers ALWAYS bitch about rises in the minimum wage.

I don't think their predictions have ever proven corred, though.