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Minimum Wage Hike Passes Connecticut House

Connecticut’s minimum wage could rise a quarter a year for the next two years to $8.75. A new study says that minimum wage increases do little to effectively help poor people.

The Connecticut House of Representatives approved raising the minimum wage from $8.25 to $8.75 in the next two years. The vote passed by an 88-62 margin and the bill’s fate is now up to the Senate.

According to the Hartford Courant, the proposal was pushed by House Speaker—and U.S. Congress candidate—Chris Donovan. He reportedly backed a more aggressive bill, which would have raised minimum wage to $9.75 in two years and then tied future increases to inflation.

Economists and politicians have never reached a consensus on the merits of raising the minimum wage and the potential effects on employment numbers. One new study from the University of Georgia states that raising the minimum wage doesn’t help poor people.

From the study’s executive summary

As one explanation of their findings, the authors show that over half (54.7 percent) of poor, less-educated individuals between ages 16 and 64 do not work. A similar percentage (53.6 percent) of individuals who report missing a rent or a mortgage payment do not work. Thus, many of the people policymakers are trying to help won’t benefit because they’re not working.

Even among those who do work, the minimum wage appears to be poorly targeted. Nearly 87 percent of the wage earners who benefited from the 40 percent increase in the federal minimum wage between 2007 and 2009 were not poor—56 percent lived in households with an income more than two times the poverty threshold, and one-third lived in households with an income more than three times the poverty level.

 

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Editor's note: This article originally was published on Darien Patch at 3:28 p.m. The time stamp was changed for layout purposes on the Home page.

Glen K Dunbar April 27, 2012 at 07:54 PM
It all helps the poor people. So, I am for this. IT may not be much. But, for those who make that it is some help. Sad that some have to make so little. But, at least they have work. I am no millionare. But, I LOVE my work and job. Now if I could just focus on it more instead of this nonsense of living in New Canaan and doing work outside of work that NOBODY else has to do. Really unfair here. GLEN
Alex Tytler April 28, 2012 at 09:39 AM
Brilliant master stroke. Democrats are idiots.
Darien Taxpayer April 29, 2012 at 08:39 PM
If raising the minimum wage is such a brilliant idea, and since the Democrats have control of the Legislature, the Senate and the Governor's office, why didn't they raise it by $5 or $10 an hour to a "living wage" and let's see what happens. The CT economy would disintegrate. So instead they increase it a measly 25 cents to pretend they are doing something. Democrats have done more to damage CT economy than any single factor you can name. They are morons and now we see they are cowards, too.

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