Last Modified: Friday, March 07, 2014 11:04 AM
An increase in the minimum wage would decrease low-income citizens’ dependence on government assistance, according to a report released Wednesday by the Center for American Progress.
“A lot of American families realize the economy isn’t working for them,” Ben Olinsky, senior fellow with CAP, told media members on a conference call Thursday.
President Barack Obama has proposed raising the minimum wage to $10.10 an hour, which Olinsky said makes the economy work for everyone — not just the wealthy. Minimum wage now stands at $7.25 an hour.
“It would actually put dollars in the pockets of hardworking, low-income Americans,” Olinsky said. “They would then have that money, and they would spend that money almost immediately in their local businesses and communities, which would create a virtuous cycle of prosperity.”
The Federal Reserve Bank of Chicago saw a stimulus effect in the first year after raising the minimum wage, he said. According to the report, raising the minimum wage nationwide would lower government spending by $46 billion over the next decade.
“The best way to reduce government spending on a program like SNAP (Supplemental Nutrition Assistance Program) is not to just cut benefits to families, but to actually raise the minimum wage and help them make more and sustain themselves,” he said.
Louisiana would see a decrease in spending of $108 million a year, or a 7.5 percent cut in 2012 expenditures in the state on SNAP, he said. And more than 360,000 workers in Louisiana would benefit from the pay increase.
Jan Moller, director of the Louisiana Budget Project, said the report proves what “has been long suspected.”
“When people get a raise then they are less dependent on public assistance programs,” Moller said on the conference call. “Contrary to some claims it would actually create jobs.”
Gov. Bobby Jindal has said he will not support raising the minimum wage because the economy is not strong enough.
According to the LBP, 73 percent of Louisianians support raising the minimum wage to at least $8.50 an hour.
Posted By: PQW On: 3/13/2014
Title: Like I said....
minimum wage is for minimum education. Minimum skills as well. I got a job in Louisiana and knew nobody before I moved here. My education and experience got me the job. Are you really getting a raise since the price of everything will go up because it will cost business more to employ you? Or maybe even them having to pay more could eliminate some jobs all together.
Posted By: Kisha Crochet On: 3/9/2014
Title: for the raise
Sorry dont know who informed u but they dont call it minimum wage because you have minimum education. I have an Administrative Assistant Computer Specialist Associate Degree and i work at a shoe store making $7.25 an hr because in Louisiana in order to get a good paying job uve got to know someone in the hiring department of a company. The good lord knows when business is slow my hours are cut and no where in this world can anyone live off of 200$ every 2 weeks. I have to pick up extra side jobs to survive. No i do not get any type of Government Assistance so i struggle my tail off to make it and ita very stressful!!!
Posted By: pqw On: 3/8/2014
Title: No raise
They call it minimum wage because you have minimum education.