Connecticut already has the sixth most burdensome minimum wage in the nation. A high minimum wage raises labor costs for small businesses, and eliminates jobs for many low-skilled and young workers. It’s bad for both small businesses and workers.
Raising the minimum wage often makes for a nice political sound bite, but it makes no economic sense whatsoever.
The Connecticut law would jack up the state’s minimum wage from $7.65 per hour to $8.00 as of January 1, 2009, and then to $8.25 on January 1, 2020.
Currently, the federal minimum wage is $5.85, and is scheduled to rise to $6.55 on July 24, 2008, and then to $7.25 on July 24, 2009.
Rell has opened the door to a possible veto. Connecticut’s Republican-American editorialized on May 21:
Some studies have shown minimum-wage increases kill jobs and force unskilled people to work "under the table" for whatever an unscrupulous employer is willing to pay them. The minimum wage also may be viewed as a stealth tax, as government transfers to businesses the cost of supporting low-income workers.
"A lot of businesses have said to me, 'I won't be hiring because of this if it goes into effect,'" Gov. Rell said. "So do we give people the benefit of an additional few cents in wage per hour, or do we try to keep more people employed?"
The editorial is absolutely correct about the economics. Governor Rell is right in her concerns.
All that’s left is that veto.
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