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House Speaker: Minimum Wage Hike to Stimulate Economy [POLL]

Some support an increase, while others traditionally argue that it hurts small businesses. What do you think? Participate in our poll.

 

The following is a press release:

House Speaker Christopher G. Donovan (D-Meriden) joined Democratic legislators, labor leaders, a small business owner and minimum wage workers Tuesday to propose an increase in Connecticut's minimum wage, and said legislation to be proposed in the 2012 session will call for indexing the wage to keep pace with the rising cost of living and give employers predictability on their labor costs.

The proposal calls for Connecticut's current minimum wage of $8.25 per hour to be raised to $9 per hour this year, $9.75 per hour next year and then to be indexed in the years following. He was joined at a news conference today to discuss the proposals by Democratic State Representatives Zeke Zalaski, Ezequiel Santiago and Diana Urban, labor representative Lori Pelletier, business owner Barbara Stasiak and Elaine Peters of Mothers for Justice.

"More families than ever are relying on low-wage and minimum wage jobs to make ends meet," Speaker Donovan said. "That leaves them struggling. While most job losses in the recession hit higher wage sectors like construction, manufacturing and finance hard, much of the new job growth has been concentrated disproportionately in low-wage industries."

He added, "Raising the minimum wage now is good for Connecticut workers and good for our economy. Doing so can stimulate the economy by increasing consumer spending, which in turn helps to create jobs at local businesses needed to meet increased demand."

"We must continue the push to establish a minimum wage that allows individuals an opportunity to provide for themselves and their families," said Rep. Ezequiel Santiago (D-Bridgeport), vice-chair of the Labor Committee. "The minimum wage is an especially important issue for me as city residents — who disproportionately rely on service industry jobs — are the most affected by changes to the base level income."

"Low wage earners in our state are struggling to survive in an economy that continues to be very difficult," said Rep. Bruce "Zeke" Zalaski (D-Southington), House chair of the Labor Committee. "While we have made strides in improving the minimum wage in recent years, raising and indexing the minimum wage will help single mothers, families and all those who work at minimum wage paying jobs. Many of these wage earners work at part-time jobs and they deserve our support."

"Currently a single mom of two working full-time-40 hours a week and 52 weeks a year-would still fall well below the federal poverty level and that is simply shameful," said Rep. Diana Urban (D-North Stonington and Stonington), House chair of the Select Committee on Children. "This is also a great way to help boost our local economy since most minimum wage earners live paycheck-to-paycheck and will spend increased earnings-more than $71 million per year-at local businesses."

"Increasing the minimum wage is vital to Connecticut workers and their families, and in particular woman and people of color," said Lori Pelletier, secretary-treasurer of the CT AFL-CIO. "Increasing the minimum wage puts more money into families' pockets and in turn those families spend it in the Connecticut economy. Low income families have been hit hard by the economic downturn of the past three years and now is the time to provide those families with an increase in their wages. By leading the way on this issue Speaker Donovan has once again shown his support for workers and their families."

Barbara Stasiak, owner of Bridal Bells Boutique in Berlin, Conn., said she pays employees at rates above minimum wage. "I challenge anyone, business owner or otherwise, who opposes a minimum wage increase to try to live on $8.25 an hour. A fair and living wage keeps employees loyal and productive. Paying a fair wage hasn't hurt my business, it's helped it. It's time that lawmakers and business owners stand up for their workers. Raising the minimum wage is the right thing to do, and the right time is now."

Speaker Donovan said that in 2010 the industries that experienced the highest job growth were retail sales persons, cashiers, and food preparation workers - all occupations with median wages below $10 per hour.

He cited a poll by the National Employment Law Project that found that 67% of Americans support gradually raising the minimum wage from the current federal rate of $7.25/hour to at least $10/hour.

Connecticut last raised its minimum wage from $8.00 per hour to $8.25
per hour in January 2010. The indexing proposal would automatically adjust the minimum wage annually to keep pace with the rising cost of living. States that currently index their minimum wages so that they are automatically adjusted each year are: Arizona, Colorado, Florida, Missouri, Montana, Nevada, Ohio, Vermont and Washington.

The federal minimum wage would be $10.40 per hour if it had been indexed since its inception based on cost of living.

The last time the federal government raised the minimum wage was July 2009 from $6.55 per hour to $7.25 per hour.

  • Do you support a proposal to raise Connecticut's minimum wage from $9 to $9.75 an hour?

    (Voting has been closed for this question)
    • Yes, the minimum wage is too low to live on and an increase could boost the economy, because workers would have more disposable income.
        35 (35%)
    • No. This increase would hurt small businesses.
        64 (64%)
    Total votes: 99
  • This is not a scientific poll. View Results Vote!

QWERTY

8:53 pm on Tuesday, January 31, 2012

Household income increased last year but spending did not. How does this stimulate the economy again?

Here we go again, this state only helps those who contribute the least. Does this increase apply to all Connecticut workers across the board? Is my employer going to give me a $1560 increase? NO! What about me? Oh that's right, I "make too much money".

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monroe taxpayer

10:04 pm on Tuesday, January 31, 2012

Household income increased last year? Where did you get that info from?

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QWERTY

10:53 am on Wednesday, February 1, 2012

And it was personal income that increased. I'm not entirely sure what the difference is.

Will Wilkin

7:20 am on Wednesday, February 1, 2012

Love to see any of the complainers live on anything close to the lowness of minimum wage.

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Rob

10:16 am on Wednesday, February 1, 2012

At 23 years old I had 3 jobs two part time and one full time. Now you cant get people to work 40 hours a week with out complaining

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QWERTY

10:55 am on Wednesday, February 1, 2012

That's why you work hard, better yourself and move up in life. Learn a skill that's in demand. We shouldn't be rewarding people who do the bare minimum.

B Miller

7:40 am on Wednesday, February 1, 2012

If the legislators goal is to guarantee unemployment above 15% for the inner cities and 25% unemployment for youth, especially minorities, then they are right on track. Minimum wage jobs are primarily for low skill, first time workers and instead of doing everything we can to encourage their employment the legislator does the opposite and blames businesses. They, legislators, should all be forced to take an Econ 101 course so they have a rudimentary understanding how the economy works. You need to get people into the work force and allow them to grow with experience and training. This raise will help a small few but hurt many more unfortunately.

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Ron

8:25 am on Wednesday, February 1, 2012

Typical liberal Democrat, labor union pablum. Higher wages hurt employers of all sizes. Those who benefits are the few in our economy who actually work at minimum wage jobs and politicians who pander to them.

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Rob

10:14 am on Wednesday, February 1, 2012

I am trying hard to pay all my employees on the books, this increase will drive more small business owners to pay under the table costing more in the long run for us all. How can this state justify a 10% increase in wages to anyone. Minimum wage jobs are there to help kids and beginning wage earners start out in life gaining responcibility. Hey I'm out increase it if you like and I lay one worker off. Harder on me but i cant aford it

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Steven DeVaux

8:39 pm on Wednesday, February 1, 2012

Rob,

That's too easy. They need the 10% wage increase to collect the 20% tax increase they passed.

Woodbury Connecticut

11:45 am on Wednesday, February 1, 2012

Is it possible that we are focusing on the wrong problem in the wrong way? Is the problem the low minimum wage, or the lack of other employment opportunities in Connecticut? When manufacturing, clerical and construction* jobs leave the state, people who are motivated to take care of themselves will take service jobs which start at minimum wage. There are plenty of people working in fast food restaurants who took the job when the recession hit, in order to pay their property tax when their spouse was either laid off, or had to take a major pay cut in order to keep working.

*yes, construction jobs do leave the state when builders start putting up "pre-fabricated" structures, built in factories in states with lower taxes and labor costs. Over the last couple of decades, the face of construction has changed in Connecticut.

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Patrick O'Hara

11:47 am on Wednesday, February 1, 2012

Sales tax increased 7/1/2011
Tax exemption for clothes under $50 eliminated 7/1/2011
Tax added to new services 7/1/2011
New income taxes 7/1/2011
New taxes on yarn and fabric 7/1/2011
New taxes on hotel rooms 7/1/2011
New taxes on booze 7/1/2011
Dan Malloy said of his budget-"The budget is balanced, honest and contains none of the gimmicks that helped get us into this mess."

So with all the new taxes needing to be paid should there be any suprise wages will be hiked by the folks who need the taxes paid????

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QWERTY

11:55 am on Wednesday, February 1, 2012

I don't disagree, but what percent of the overall tax revenue do minimum wage workers contribute? 10%? 15? Perhaps lawmakers should focus on the 85% of us...those who "make too much money" yet still have two working adults away from the household for 40-50-60 hours a week...those of us who have to work until age 60-70 before retiring.

Joey

2:47 pm on Wednesday, February 1, 2012

Mr. O'Hara - do you receive tax breaks/subsidies for owning a farm?

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Patrick O'Hara

4:08 pm on Wednesday, February 1, 2012

I've been stimulating the economy for 20 years by paying my seasonal employees wages that were above the minimum.
My farm has remained undeveloped for 20 years and as such not added residential development to the town. Residential development has been documented to need more in service than they pay in property tax.
Thank you for your interest in my community contribution.

Don Carten

3:37 pm on Wednesday, February 1, 2012

This proposal is simply a blatant attempt to secure more votes for the liberals. The sad thing is that it will probably work. Anyone with any common sense will recognize that this hogwash will simply lead to more unemployment and therefore more government dependence and hence more support for the Democrats who have driven our once great state (and nation) into the ground.

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JM

8:39 pm on Wednesday, February 1, 2012

Just curious - if businesses were forced to pay a living wage, how many kids in high school would drop out and go flip burgers at McDonald's? A high minimum wage, while a noble idea to prevent poverty, is a job killer. This will result in more businesses not hiring or just shutting down. It's counter-productive. Minimum wage jobs are meant for college kids(and I was one of them) and low skill/entry level jobs. Period.

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Michael Gianfranceschi

12:15 am on Thursday, February 2, 2012

let's see... raise labor costs and those are passed on to the consumer... so the people who got the raise will end up paying more for what they need as we all will...not to mention the number of jobs that will be terminated because of these higher labor costs...just more government bs...

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