Rising Minimum Wage For Federal Workers
Sam Larsen
Staff Writer
During the Jan. 28 the State of the Union address, President Obama announced that he is acting to raise the minimum wage for federal contract workers.
Obama will sign an executive order stating federal workers will receive $10.10 an hour instead of $7.25. However, this will not apply to all involved in government payroll; to make it apply to all government employees would take an act of Congress.
Raising the national minimum wage is meant to adjust to inflation throughout the years. Minimum wage critics claim that raising the rate will have a negative effect. It is possible that it may discourage businesses from hiring workers at one time when the government wants to increase job growth.
The reason for hiking minimum wage is to build momentum for all Americans’ minimum wage. Last year, five states raised their minimum wage. But this may raise the cost of living as well and create more poverty.
“I do feel bad for people who work in minimum wage jobs,” business teacher Trent Goldsmith said.
California will soon require the highest minimum wage in the U.S. California is already ahead of the pack in the national government to raise minimum wage. In 2015, minimum wage will most likely reach $11 per hour, $12 in 2016 and $13 in 2017.
Raising the minimum wage will create a hard life for those who own their own business. They will either not make a profit, let employees go, (which will create a larger unemployment) or raise the prices of things. This will not benefit the economy.
“The government runs a deficit every year,” Goldsmith said. “Maybe the federal increase won't hurt as much, but I do believe it will lead to higher prices for federal services and slow down economic growth.”
Although the president believes this will be the best thing, no one can what will know what will happen for the future. America will just have to wait and see.
