Obama’s Minimum Wage Goals Under Fire
December 31, 2010 by Special To Personal Liberty
Seven states are set to raise their minimum wage on Jan. 1, which could give President Barack Obama the momentum he needs to increase the Federal minimum.
Obama has pledged to raise the Federal minimum wage from its current $7.25 level to $9.50 per hour by the end of 2011. Although the President has focused on other campaign goals, such as healthcare reform, financial regulation and stimulus packages, some experts believe that the wage increases on the state level will give Obama fuel to hit his target of $9.50 per hour.
However, a potential minimum wage increase has received harsh criticism from some finance specialists. Tad DeHaven, a budget analyst at the libertarian Cato Institute, told FOX News that the move would slow hiring and hurt investment by making states with lower wages more appealing to prospective businesses.
"The existence of the minimum wage is already inhibitive. Increasing it would just add insult to injury," DeHaven told the media outlet.
According to The Denver Post, some business leaders in Colorado are concerned about the upcoming wage increase — from $7.25 to $7.36 per hour. Pete Meersman, the president of the Colorado Restaurant Association, told the news provider that the change may cause employers to be more reluctant to hire, or they may decide to shift the cost to consumers.