Will Raising The Minimum Wage Help Or Hurt Workers? [VIDEO]

Does raising the minimum wage help create jobs? AOL Jobs hosts its As Washington argues over the federal budget and sequestration, another issue has emerged of immediate concern to workers: Is it time to raise the federal minimum wage from $7.25 an hour to $9 by 2015? President Obama suggested it during his State of the Union speech, when he said it's "wrong" that a full-time worker earning minimum wage ends up with a $14,500-a-year-salary. For a worker with a family of with two kids, that means life below the poverty line, he said. (Ten states are also planning to raise their minimum wage in 2013, Reuters reports.)

But there has been fierce debate over whether a higher minimum wage will help workers -- or the struggling economy. Reams of studies can be cited on both sides. A landmark 1993 study on the subject found that when fast food workers had their wages raised from $4.25 to $5.05 an hour, overall employment at restaurants increased by 10 percent. But critics argue that even though a worker ends up with a higher salary from a higher minimum wage, they in fact lose out.

"Any minimum wage increase [is] not money coming out of the sky," James Sherk, senior policy analyst specializing in labor economics, at the right-leaning Heritage Foundation, said during AOL Jobs' "Lunchtime Live" series on Friday. "It's either going to be coming out of employers' pockets in the form of lower earnings, or more often from consumers' pockets from higher prices."

Also appearing on "Lunchtime Live" was Doug Hall, director of the Economic Analysis and Research Network at the left-leaning Economic Policy Institute and Joe Olivo, the owner of Perfect Printing, a small, commercial printing business located in Moorestown, N.J. Not surprisingly, the three had a lively discussion on the topic.

Take a look, and then tell us: Do you think raising the federal minimum wage will help workers?

Lunchtime Live - Minimum Wage

(To watch the full video chat, go here.)

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frank maserati

they got the job and they were told how much they will be paid.if there not happy . or if they don't like it there. they should just quit. I will not missed them at all.

April 15 2013 at 10:20 PM Report abuse rate up rate down Reply
richastee

There have been a loot of comments that minimum wage jobs are for people with no skills who are not supporting a family. Unfortunately with the current economic conditions this is often not true. My son who has a degree, several years of management experience and a teaching certificate was forced to take a job making not much above minimum wage-less than the proposed $9.00. At first he was ashamed to be working there. Then he noted that there were several people a day at least as qualified as him who were coming in to apply for his job.

March 04 2013 at 11:55 PM Report abuse rate up rate down Reply
airborneinore

Usually the people crying about paying 9.00 hr. are making six figures and would rather pay some kid that has to do some thing 3 times to get it right. In the long run if you pay a person a decent wage , treat him good , he will cost you alot less then retraining some one every few months.

March 04 2013 at 10:59 PM Report abuse +2 rate up rate down Reply
rjnod80

what fails to be recognized is that the entry level jobs were for high school kids, homemakers looking for part time work, retired folks, and those with no skills but willing to work. IT WAS NEVER INTENDED FOR RAISING A FAMILY!!!!!!!!!! IT WAS NEVER INTENDED TO BE A LIVING WAGE!!!!!!!! by raising the minimum wage the entry level work force is further reduced as payroll can only support so many with out skills. So the urban youth which is 35 to 45% unemployed will see fewer job opportunities and delay their entry into the work force, if they ever get there.
The dirty little secret about minimum wage, is that many of the union contracts for wages are based upon the minimum wage(multiples of it) so now its easy to see why this is nothing more than payback for getting the vote out. Politics as usual.

March 04 2013 at 9:13 PM Report abuse +1 rate up rate down Reply
laugh

Tell the guy/girl earning $7/hr. that $9 won't be good for him. $18,700 still won't get a family of 3 above the $19,500 poverty level. I guess that would be why most of the folks here in townMUST have both working.

March 04 2013 at 7:32 PM Report abuse +3 rate up rate down Reply
1 reply to laugh's comment
fritzcalkins

THe minimum wage was never intended to provide a "living" for 3 people. You should either get skills or delay having a "family of 3".

March 04 2013 at 8:52 PM Report abuse +2 rate up rate down Reply
hsenpfeffer

Why is it only a bad thing when workers wages are increased? Why is it supposedly a good sign when housing prices increase and thus the commissions of real estate sales trash? Why is it a good thing when CEOs of failed institutions see their wages skyrocketing beyond any right or reason? But then when it comes to people who actually do something constructive it is bad to raise their wages. No one whines about salestrash seeing their grubby commissions increase even though they produce nothing at all. Workers need to receive an honest days pay for a days work. And if that is not enough to survive on it is not honest pay. Either pay an honest salary that actually covers cost of living or quit whining about welfare.

March 04 2013 at 6:42 PM Report abuse +2 rate up rate down Reply
1 reply to hsenpfeffer's comment
David

What is bad is when wages are forced to be raised against the market's natural call for it. When housing increases it is a natural sign the market is growing (except when done artificially thanks to the community reinestment act) ... so when increases are natural, due to econ 101, supply and demand, it is good, no, great for everyone. As far as wages, if things are good labor cost naturally rise because good people can choose to find a different job and if you are worth keeping, you present employer will have to pay more to keep you. There is no 'yeah buts', or 'what ifs', it has to be ... economics is human nature and cannot be artificial for any length of time or it WILL collapse.

March 04 2013 at 8:34 PM Report abuse -1 rate up rate down Reply
stinkyheadzzz

If it had kept pace with CEO pay it would be $23 hr THINK ABOUT IT

March 04 2013 at 6:41 PM Report abuse +4 rate up rate down Reply
kentblackdog

Good for those woprkes who STILLl have jobs, not so good for the rest.

Thew added costs have to come from someplace-----------more poeple losing thier jobs and more people getting fewer hours, and nmore full time jobs going the temp route--under 30 hours.

Carefull what you wish for--------the higher wage costs, have to come fro someplace--------(it as as it always has been----no such thing as a free lunch)

March 04 2013 at 6:21 PM Report abuse -3 rate up rate down Reply
Vince

Raising minimum wage is one factor in the cause of inflation.

March 04 2013 at 5:24 PM Report abuse rate up rate down Reply
mcgowann

Minimum wage rates are for entry level workers with no previous job experience. It's not about an adult with a wife and kids. Right now, unemployment rates for teens is above 25% and for black male teens it's around 50%. It's been that way since the last increase in the minimum wage. It's why employers prefer to hire seniors instead of teens. Seniors have experience and a stronger work ethic.

March 04 2013 at 4:54 PM Report abuse +1 rate up rate down Reply
2 replies to mcgowann's comment
brl131psu

Thank you!!! I've been saying this all along. They are going to go after 1 person who can do the job of 2 teens for this increase. Guess what? Higher teen unemployment and a bigger deadbeat factory that is the US

March 04 2013 at 4:58 PM Report abuse rate up rate down Reply
deesub

I work in retail ,they just hired two old guys that are tool and die that lost their jobs to outsourcing , they both are making just above minimium wage until they are old enough to retire,,,soon

March 04 2013 at 7:44 PM Report abuse +1 rate up rate down Reply

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