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Key Vote

Key Vote NO on the Senate's Minimum Wage Hike

As one of our over 6 million FreedomWorks members nationwide, I urge you to contact your senators and ask that they vote NO on any increase in the federal minimum wage. Sponsored by Senator Tom Harkin (D-IA), the latest Senate bill, S. 2223, would raise the minimum wage nationwide from $7.25 per hour to $10.10 per hour. Furthermore, it would provide for permanent automatic wage increases, indexed to inflation.

Wages are just like any other price in an economy – they adjust to reflect the value of the labor provided. The sort of jobs that pay at or below the minimum wage are generally completely unskilled, entry-level jobs. These are the first rungs on the economic ladder, which allow people with zero skills or experience to get their start. Raising the minimum wage is akin to pulling this ladder higher, until that bottom rung is too high for many people to reach.

A large majority of minimum-wage workers earn more than that wage within a year after starting their job, because their accrued experience has increased their value. But these people must have somewhere to start.

In addition to eliminating opportunities for workers just getting started, raising the minimum wage would have major consequences for people currently in the workforce. If businesses suddenly have to start paying more per hour for unskilled labor, that extra money must come from elsewhere in the business. Whether the necessary savings are found by cutting the number of workers, their hours, or from raising prices or decreasing services, businesses lose resources they could have used to support themselves and expand. As a result, the Congressional Budget Office has estimated that the wage increase currently being considered will cost at least half a million jobs from the existing economy.

For these reasons, I urge you to call your senators and ask them to vote NO on S. 2223 or any other bill to increase the federal minimum wage. We will count their vote as a KEY VOTE when calculating FreedomWorks’ Economic Freedom Scorecard for 2014. The Scorecard is used to determine eligibility for the FreedomFighter Award, which recognizes members of Congress who consistently vote to support economic freedom.


Matt Kibbe President and CEO, FreedomWorks

4unitsx90units_360units's picture

So lets discuss this. If a person earns $7.25 an hour then he or she can afford to live in a studio right? Because the realtor's, tax assessors, investors in big apartment complexes keep raising the property value. Then turn around and charge more for a studio or 1 bedroom or home...etc. because it "looks nice". So the person earning $7.25 per hour has to live on the street. Point being in case its not understood is the cost of living in a shelter be it a home, apartment, room for rent...etc. isn't matching the income index for hourly workers. Granted maybe raising the minimum wage isn't the right answer, but neither is the constant raising prices of apartments, homes, room rentals if people are to have a place to live without clogging up streets. Then cities have to manage apartment buildings to offer the homeless a place to live because the "free market" is out of touch with the realities of its workforce.

Morlocke's picture

Your grasp of economics is... well, what's lower than elementary? Minimum wage earners are typically high school and college age workers that either live with their parents (quite common in the Obama economy) or share housing costs with roommates. Workers with any experience can easily earn more than the minimum wage.

If you want affordable housing, move away from Democrat dominated states like California and New York to somewhere that the "free market" is actually allowed to operate without "progressive" restrictions driving up prices.