How Will the President’s Plan to Raise Minimum Wage Affect MississippiBy Lawayne Childrey | Published 13 Feb 2013 08:11pm |
Some 58,000 Mississippians making minimum wage could benefit from President Obama's proposed minimum wage increase. But not everyone believes it would be in the best interest of the economy.
22-year old single mother, Ashley Guise spends her days making an honest living for she and her two daughters.
She is a janitor at Jackson State University and she says raising the minimum wage from $7.25 to $9 dollars an hour would give a tremendous boost to her family's quality of life.
"Because it was hard being a single parent with two kids on my own with pampers and formula and more gas, back and forth to school transportation. So yeah, a lil more pay is better, a lil more pay in my pocket," she says.
While some opponents believe the increase could cut workers hours and leave jobs vacant, Assistant Professor in the Department of Economics Finance at Jackson State University, Dr. Nicholas Hill does not necessarily agree with that theory.
"One of the things that we do know is that now more laborers will come to the market because of the fact that they now can obtain a higher wage," he says, "Also we know that because we are paying more they are gonna consume more and because they're gonna consume more that may actually increase production because now they are coming to the market demanding more goods to consume. And because of that now the firm has to hire more workers," continues Hill.
Senior State Economist Marianne Hill says research shows there could be an upside to raising the minimum wage.
"As people come out of poverty there is a positive impact for the taxpayer who has been subsidizing programs such as food stamps and earned income tax credit. So it could be a sizable impact on the public coffers to not have to pay for those programs," says Hill.
The last time lawmakers approved a minimum wage increase was in 2007 when they agreed to a three step increase from $5.15 to the current $7.25 an hour.
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