Many states around the nation including Ohio, New York, New Jersey, and Connecticut have taken initiative to raise their minimum wage above the national requirement and West Virginia might be following the trend.
The House of Delegates has introduced legislation that will increase the minimum wage a total of one dollar in the next two years. There is much debate statewide and nationwide on if raising the minimum wage will positively effect those living in poverty and on the overall economy.
Advocates for raising the minimum wage believe that it will benefit hardworking citizens who work 60 or more hours a week but are still unable to afford life’s basic necessities. According to a study at U.C. Berkeley, roughly half of those that would be affected by a minimum wage increase are in families making $40,000 a year or less. In addition, many supporters of the increase believe that raising the minimum wage would boost the economy because low-income families would have extra money that they would spend in local communities.
“Studies show that a reasonable raise in the minimum wage will help the economy because it’s going to give a little money back to the people who we know are going to spend it,” said Stephen Skinner, D-Jefferson, a cosponsor on House Bill 4283, the House’s minimum wage bill.
Christina Romer, a U.C. Berkeley economics professor and former chair of President Obama’s Council of Economics, says that some evidence suggests that a raise in the minimum wage could result in lower turnover rates which raises productivity and labor demand.
Conversely, however, many are concerned that raising the minimum wage will negatively effect businesses and will result in a lower number of jobs. Some believe that businesses will be forced to cut down their number of employees as a result of a minimum wage increase; therefore, those who work minimum wage jobs would have a harder time finding jobs and potentially keeping their current job.
Additionally, economists who are opposed to raising the minimum wage argue that raising it would simply inflate the prices of goods and services which would put minimum wage workers back in the same position they started in. Contrary to Romer, some are concerned that raising the minimum wage will lower work ethic in employees and discourage young adults from seeking higher education if they’re able to make a living working a minimum wage job.
“The real solution is to create more jobs so that more people are working,” said Delegate John Overington (R-Berkeley), who was one of two delegates to vote against HB 4283. “Employers will offer more than the minimum wage because there’s a lot competition for employers looking for people.”
Many legislators are supporting the bill because of the positive effect they believe it will have on the economy. Delegate Jason Barrett (D-Berkeley), the lead sponsor of the bill, believes that raising the minimum wage will reduce the amount of government aid required to help people who need the extra assistance.
“When someone is making minimum wage, they are going to spend every cent they have and there’s not going to be any money left at the end of the month,” said Barrett. “All the additional money that these people will earn with this minimum wage increase will be spent back into our economy.”
The legislation has a provision that will exempt business owners with fewer than six employees and has support from the State Chamber of Commerce.
The bill has passed through the Industry and Labor Committee and will now be considered by the Finance Committee before making its way to the House floor for a vote. to get opinions and recommendations from water experts.
