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Raising Minimum Wage Is A Temporary Solution At Best
Twin Falls, Idaho ( KMVT-TV / KTWT-TV ) Right now, the minimum wage here in Idaho is $7.25 an hour. President Barack Obama wants to raise the minimum wage to $9.00 an hour two years from now. But will that have the desired effect?
On the surface, raising the minimum wage seems like a good idea. But that's usually not the case in the long run.
All of us could use a bigger paycheck, either to get ahead a little bit, or to pay off some nagging bills that we'd like to get rid of. But that's tough to do, especially on minimum wage.
Schoolteacher Neva Ward says, "I started waiting tables, and I grew up on a farm, being a farmhand. So I know first hand what little skimpy money is like. And I live comfortably now."
Ward says everyone from minimum wage earners all the way up to business owners are all greatly affected when the minimum wage pay rate goes up, but not always positively.
Business owners across the nation will have to compensate for that pay raise, which in some cases may mean cutting back on the number of employees they have, everyone from baristas to farm workers.
Ward says, "I think it's up to the business owner, the CEOs, and all those who are in charge. They can make those decisions. If it's raising their hourly wage, or giving a bonus to their employee. I think it's better for the owner to make those decisions that for the government or the president to make those kind of changes."
Ward says whenever the government regulates something, then free trade is greatly affected, which means both business owners and employees have to compensate accordingly. She says some great intentions like raising the minimum wage can only be just that sometimes – just a good intention.
Feb. 18, 2013.