John Kerry recently proposed that he would raise minimum wage from $5.15 and hour to $7.00 and hour if elected. This would be the first minimum wage increase in America since 1997. Kerry, speaking of President Bush, stated, "If a president can go out and fight for four years to provide over a trillion in tax cuts to the wealthiest people in America, we can fight for a few months to raise the minimum wage for the poorest people in America." I would like to hear some opinions on this proposal.
My personal feeling on the issue is that raising minimum wage won't solve too many problems. Even though the wage increase would increase my current paycheck, I don't feel that it would be a long term benefit to me or America. With a wage increase, inflation is sure to follow. Eventually, costs to employers will go up, prices will climb, and things will balance out. We'll be right back where we started.
I do think the a wage increase would benefit minimum wage workers for a short time, but how long would it be before current $7.00 and hour wage earners would demand that their wage's be increased as well? As I stated before, I think the whole proposal would just start a balancing act that would eventually land us back where we started.