Minimum Wage Increase
As promised the new Democratic majority in The House has increased the Federal minimum wage from $5.15 to $7.25. It now goes to the Senate, then the Senate and House most likely will have to reconcile their differences, and then on to President Bush.
All Democrats in the House voted for the increase and so did EIGHTY TWO Republicans. 116 Republicans voted against the increase. It is depressing to me the so many Republicans voted in favor of this increase... They truly are another large government Party... I have been telling you that for years...
This post is not meant to start a discussion about whether increasing the minimum wage is good or bad. There are currently six contributors to this blog and I am pretty sure that we think the following:
Raising the Federal Minimum wage is good: Robert Rouse, Sheri Rouse, Jeff Pruitt, and Stan Matuska
Raising the Federal Minimum wage is bad: Mike Sylvester and Andrew Kaduk.
As most of you know I am against a Federal minimum wage at all. I think each of the fifty states, the District of Columbia, and all US Territories should set their own rates; that being said, I do not think raising the minimum wage will destroy our economy like some "right wingers" think. I think it will hurt some industries and raise some prices. I also do not think it will help as many people as some "left wingers" think... I think it will help some people; however, most people will not be helped by this increase. Some people will lose their jobs after this increase...
There is no doubt in my mind that the Federal Minimum wage will be increased...
There has been a lot of media attention about the fact that The Federal minimum wage was not implemented in the American Territory of American Somoa; however, it was implemented for the Northern Marianas Islands.
First of all there are 14 US Territories. I have been to three of them...
Baker Island, Howland Island, Jarvis Island, and Navassa Islands are all uninhabited.
Palmyra Atol is privately owned and is used as a vacation home.
Kingman Reef and Midway Islands do not have indigenous populations and each has a small government facility on them belonging to the military and US Fish and Wildlife respectively.
Johnson Atoll does not have an indigenous population. It has a weapons disposal facility and I have a couple of friends who work there...
Wake Island does not have an indigenous population and is the home of a couple hundred contractors...
All nine of the above US Territories are either uninhabited or have small, highly skilled and highly paid employees. We do not need to worry about The Federal minimum wage in any of them.
The last five all have indigenous populations:
American Somoa has about 58,000 inhabitants and has not been covered by the Federal minimum wage in the past. Minimum wages are set by industry and range from $2.63-$4.09. The new law passed by Democrats excludes American Somoa just like was done in the past.
The Northern Marianas Islands have a population of about 82,000. These islands have in the past been exempt from the Federal minimum wage; however this new legislation will make the Northern Marianas Islands have to comply with the Federal minimum wage.
Guam has a population of about 171,000 The Federal minimum wage applies to Guam.
The Virgin Islands have a population of 108,605. They have a minimum wage higher then the Federal minimum wage.
Puerto Rico has a population of almost 4 million. The Federal minimum wage applies to Puerto Rico.
The new Federal minimum wage will apply to all of the US territories EXCEPT American Somoa, it will apply to all fifty states, and it will apply to the District of Columbia...
I think that the Democrats made a mistake with this bill.
They keep saying that they want to increase the minimum wage for everyone and then exempt one US Territory while applying it to one US Territory that has been exempted in the past.
From all accounts The Northern Marianas Islands are rife with corruption and working conditions are horrendous. Several key Republicans got a "black eye" for their ties to the Northern Marianas and they SHOULD have gotten a black eye.
The Northern Marianas has one major industry, the garment industry. Much of the garment industry has moved to China and Asia. I think it is very likely that applying the minimum wage to The Northern Marianas may damage their garment industry and put the islands into even more poverty, we will see.
American Somoa is similar in that it has one major industry as well, the tuna industry. Two large multi-national companies are in American Somoa and make a lot of money off of their plants in American Samoa where they pay their workers about $3.60 an hour.
There are accusations flying that Nancy Pelosi caved in to pressure from Starkist (A major tuna company headquartered in her Congressional District) to exempt American Somoa from the minimum wage. I do not know if these accusations are true; however, The Democrats made a definite mistake.
Why on earth would they exempt one Territory and include another?
I plan on watching the economies of these two US Territories in the next couple of years. I would guess that the Northern Marianas are going to pay a dear price for the minimum wage increase and I imagine that American Somoa is going to do just fine since they were exempted...
Does anyone think The Democrats were smart by excluding one US Territory and applying it another very similar US Terriotry that used to be exempt?
Mike Sylvester
All Democrats in the House voted for the increase and so did EIGHTY TWO Republicans. 116 Republicans voted against the increase. It is depressing to me the so many Republicans voted in favor of this increase... They truly are another large government Party... I have been telling you that for years...
This post is not meant to start a discussion about whether increasing the minimum wage is good or bad. There are currently six contributors to this blog and I am pretty sure that we think the following:
Raising the Federal Minimum wage is good: Robert Rouse, Sheri Rouse, Jeff Pruitt, and Stan Matuska
Raising the Federal Minimum wage is bad: Mike Sylvester and Andrew Kaduk.
As most of you know I am against a Federal minimum wage at all. I think each of the fifty states, the District of Columbia, and all US Territories should set their own rates; that being said, I do not think raising the minimum wage will destroy our economy like some "right wingers" think. I think it will hurt some industries and raise some prices. I also do not think it will help as many people as some "left wingers" think... I think it will help some people; however, most people will not be helped by this increase. Some people will lose their jobs after this increase...
There is no doubt in my mind that the Federal Minimum wage will be increased...
There has been a lot of media attention about the fact that The Federal minimum wage was not implemented in the American Territory of American Somoa; however, it was implemented for the Northern Marianas Islands.
First of all there are 14 US Territories. I have been to three of them...
Baker Island, Howland Island, Jarvis Island, and Navassa Islands are all uninhabited.
Palmyra Atol is privately owned and is used as a vacation home.
Kingman Reef and Midway Islands do not have indigenous populations and each has a small government facility on them belonging to the military and US Fish and Wildlife respectively.
Johnson Atoll does not have an indigenous population. It has a weapons disposal facility and I have a couple of friends who work there...
Wake Island does not have an indigenous population and is the home of a couple hundred contractors...
All nine of the above US Territories are either uninhabited or have small, highly skilled and highly paid employees. We do not need to worry about The Federal minimum wage in any of them.
The last five all have indigenous populations:
American Somoa has about 58,000 inhabitants and has not been covered by the Federal minimum wage in the past. Minimum wages are set by industry and range from $2.63-$4.09. The new law passed by Democrats excludes American Somoa just like was done in the past.
The Northern Marianas Islands have a population of about 82,000. These islands have in the past been exempt from the Federal minimum wage; however this new legislation will make the Northern Marianas Islands have to comply with the Federal minimum wage.
Guam has a population of about 171,000 The Federal minimum wage applies to Guam.
The Virgin Islands have a population of 108,605. They have a minimum wage higher then the Federal minimum wage.
Puerto Rico has a population of almost 4 million. The Federal minimum wage applies to Puerto Rico.
The new Federal minimum wage will apply to all of the US territories EXCEPT American Somoa, it will apply to all fifty states, and it will apply to the District of Columbia...
I think that the Democrats made a mistake with this bill.
They keep saying that they want to increase the minimum wage for everyone and then exempt one US Territory while applying it to one US Territory that has been exempted in the past.
From all accounts The Northern Marianas Islands are rife with corruption and working conditions are horrendous. Several key Republicans got a "black eye" for their ties to the Northern Marianas and they SHOULD have gotten a black eye.
The Northern Marianas has one major industry, the garment industry. Much of the garment industry has moved to China and Asia. I think it is very likely that applying the minimum wage to The Northern Marianas may damage their garment industry and put the islands into even more poverty, we will see.
American Somoa is similar in that it has one major industry as well, the tuna industry. Two large multi-national companies are in American Somoa and make a lot of money off of their plants in American Samoa where they pay their workers about $3.60 an hour.
There are accusations flying that Nancy Pelosi caved in to pressure from Starkist (A major tuna company headquartered in her Congressional District) to exempt American Somoa from the minimum wage. I do not know if these accusations are true; however, The Democrats made a definite mistake.
Why on earth would they exempt one Territory and include another?
I plan on watching the economies of these two US Territories in the next couple of years. I would guess that the Northern Marianas are going to pay a dear price for the minimum wage increase and I imagine that American Somoa is going to do just fine since they were exempted...
Does anyone think The Democrats were smart by excluding one US Territory and applying it another very similar US Terriotry that used to be exempt?
Mike Sylvester
posted by LP Mike Sylvester at 10:35 PM
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