Oberstar Praises Minimum Wage Increase
Press Release
Oberstar Praises Minimum Wage Increase
Over five million hard working Americans got a pay raise today, as a new law that increases the minimum wage went into effect. The 70-cent raise that takes effect today will be followed by two more 70-cent increases annuallyfor a total of $2.10 an hour, or $4,400 by July 2009.
Congressman Jim Oberstar believes this wage hike will actually stimulate economic activity and create jobs. "This is money that will go directly into our economy," said Oberstar. "These are people who are living on the edge of our economy and they spend on the necessities of life."
It has been over 10 years since Congress last increased the minimum wage. In that time, inflation has eroded the buying power of that last increase. The Republican-led Congress opposed increasing the minimum wage over the past decade because they claimed it would halt economic growth. However, Oberstar says he's heard all of those arguments before and history has proven them wrong.
"I have voted to increase the minimum wage at least six times since I've been in Congress," said Oberstar. "And each time we've heard the same old saw: it's going to cost jobs, businesses will have to cut back their employment, it will be a detriment to the economy.' And each time we've seen entry-level wage jobs increase in our economy."
Source