The minimum wage in the United States is one of those issues that people on both sides of the political spectrum have differing views on. To some extent, I can see both sides of the argument, though I would want the minimum wage to increase with respect to inflation. Looking at it simply, if someone who works two jobs at minimum wage barely makes ends meet at the end of the day, especially if one has a family to take care of. If inflation is a part of the economic situation at the time, then how can one realistically still be able to meet those financial obligations without an increase in the minimum wage to match inflation.
Costs of everything go up, but minimum wage should stay linear? I don’t think that is the right thing to do. This may explain why some states have differing minimum wages, many of which are higher than that of the federal government mandate.
Mitt Romney was asked this question earlier this year; his position on the minimum wage. His response was “My view has been to allow the minimum wage to rise with the Consumer Price Index or with another index so that it adjusts automatically over time.” Two months later, literally two months later, Mitt Romney changed his mind on this saying he was not in favor of tying the minimum wage to inflation in order to placate the republican base. Supporting the minimum wage being pegged to inflation or consumer price index is not a position that the GOP generally stands for. What is puzzling is that Mitt Romney actually held this position when he launched his gubernatorial campaign in 1994. However, when it came time to sign a bill that would have increased the minimum wage, he did veto the bill. With many policy positions, he straddles both sides of the fence.
The argument against tying the minimum wage to inflation is that it will not spur job creation. In fact it will have the opposite effect. In countries like China, India and some other south-east Asian nations, there may not be minimum wage laws, which may also explain why children as young as 10 work long hours (12-14 hr days) getting paid $1-$4/day. The argument here is if we scrap the minimum wage, there will be an increase in job creation in the United States. However, minimum wage last went up to $7.25/hr in 2007, and corporations have seen for the most part, nothing but record profits or met growth/profit estimates. Mitt Romney seems to know that the republican and conservative base views him as suspect, but it is an odd marriage because they certainly don’t prefer the alternative. On major policy issues, Fmr Governor Mitt Romney does not seem very decisive. Just change positions for political expediency.
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