Wednesday, October 14, 2009

Colorado minimum wage to drop

Indexing works both ways.

The state Department of Labor and Employment ordered the wage down to $7.24 from $7.28. That’s lower than the federal minimum wage of $7.25, so most minimum wage workers would lose only 3 cents an hour.

Colorado is one of 10 states where the minimum wage is tied to inflation. The indexing is thought to protect low-wage workers from having flat wages as the cost of living goes up.

But because Colorado’s provision allows wage declines, the minimum wage will drop because of a falling consumer price index. It will be the first decrease in any state since the federal minimum wage law was passed in 1938.

Is there anything wrong with it adjusting downward?

(2) Comments
Posted by Owen at 0730 hrs
Economy + Politics + Politics - General

  1. That is an interesting question Owen. I would say that if the cost of living is decreasing than the minimum wage should decrease. But does the consumer price index cover everything?

    If I was a betting man - I’d say some dem legislator will quickly put up a bill to prevent this from happening.

    Posted by .(JavaScript must be enabled to view this email address) on October 14, 2009 at 1142 hrs


  2. Not at all, nor is there a problem with Social Security recipients not getting an increase.  I’ve always been a supporter of indexing, whether it’s the minimum wage (a concept I don’t support personally) or the gas tax, since the purchasing power of both fluctuates with CPI.  For things like income tax or sales tax, which are percentage based, the fluctuation exists naturally.  Indexing fixed-rate policies is logical.  Plus, it keeps politicians from wasting time having the same tired conversations over and over again.

    Posted by Recess Supervisor on October 14, 2009 at 1429 hrs


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