Democrats are forever wanting to raise the minimum wage. Tom Harkin recently introduced the Rebuild America Act which, among other New Deal type programs, would raise the minimum wage again. He says raising the minimum wage will help the economy.
“People who are making the minimum wage, basically they’re spending just about all their money because they don’t have much left,” Harkin says. “So if you give them a raise, it means more for our gross domestic product.”
Harkin estimates that his minimum wage increase would mean about $25 billion more for GDP, 100,000 more jobs and 28 million Americans would get a raise.
What is good for American workers strangely is not so good for Samoan workers. Congress just delayed a scheduled 50-cent increase in the minimum wage for Samoans. Instead of happening this September, it’s been put off until 2015. Somehow what Democrats see as so beneficial for our economy is a really stinky idea for American Samoa.
Minimum wage in the U.S. territory varies from $4.18 to $5.59, depending on the industry. A report last year by the U.S. Government Accountability Office says employment in American Samoa has suffered because of minimum wage increases that began in 2007. American Samoa employers say layoffs, work hour reductions and hiring freezes were due to the minimum wage increase.
Maynard appends: They never stop. See my earlier post, “Minimum Wage: Doing Good vs. Feeling Good”.