This Wednesday morning, February 27th, The Assembly Committee on Jobs & the Economy will hold a hearing on Wisconsin’s minimum wage. The Committee’s hearing starts at 10:00am in room 400NE, and it will consider Assembly Bill 274, which would raise the minimum wage and index it for inflation.
Although federal increases in the minimum wage passed the U.S. Congress last summer, bringing the federal minimum wage up to $7.25 by July 2009, AB274 is important because of its long term implications. Without indexing for inflation, some obvious problems remain constant even after a boost to the minimum wage is given. As explained by Goldman Sachs Vice President Andrew Tilton in a 2006 issue of US Economics Analyst,
Read More »“the periodic debates about raising the wage consume politicians’ (and economists’) time and energy, and the unpredictability of the law – irregular large hikes followed by gradual erosion through inflation – makes business planning more difficult. If a minimum wage is desired, indexing it to inflation would avoid these problems.” (WCCF)
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