Minimum Wage Hike To Cost More Jobs
Increase the Next Step in Democrats’ Job-Killing Agenda
Congressman Tom Price (R-GA) issued the following statement on the federal minimum wage hike that will take effect on July 24, 2009. Since the Democrats took control of Congress in January 2007, the federal minimum wage has increased by over 40%, and the unemployment rate for workers without a high school degree has increased by nearly 130%.
“America is often called the Land of Opportunity, but misguided policies like minimum wage mandates make job opportunities harder and harder to find,” said Congressman Price. “This wage hike will hurt the very same Americans it is intended to help by putting strain on the payrolls of the small businesses that drive job creation. When employers can’t afford to pay the higher wages, they will respond by cutting workers’ hours, laying off employees, and refusing to make new hires.
“The notion that mandating higher wages will help workers is a myth, plain and simple. Instead, it will make employment opportunities disappear. The job-killing agenda being pursued by Democrats in Washington is in full swing, and this is just one more step down their perilous road. To truly stimulate job creation and help American workers, we must unleash the power of the American entrepreneurial spirit and allow free markets to decide what labor is worth.”
| Minimum Wage Increase vs. Overall Unemployment Rate | | Date | Federal Minimum Wage | National Unemployment Rate | | January 4, 2007 | $5.15 | 4.6% | | July 24, 2007 | $5.85 | 4.6% | | July 24, 2008 | $6.55 | 5.7% | | July 24, 2009 | $7.25 | 9.5%* |
| Minimum Wage Increase vs. Unemployment Rate for Workers w/o a High School Degree and African American Teens | | Date | Minimum Wage | Rate w/o High School Degree | Rate for African-American Teens | | January 4, 2007 | $5.15 | 6.8% | 29.2% | | July 24, 2007 | $5.85 | 7.2% | 26.4% | | July 24, 2008 | $6.55 | 8.6% | 32.0% | | July 24, 2009 | $7.25 | 15.5%* | 37.9%* |
* The unemployment rates for 2007 and 2008 are based on July Bureau of Labor Statistics (BLS) seasonally adjusted data. The rate for 2009, however, is based on June BLS data because the July unemployment rate has yet to be released.
|
