Iowa Trying To Make Minimum Wage Increases Illegal
Henry Ford once said that the best customers he had for his vehicles were his employees. So, he made sure he paid them a wage that made a Ford affordable for them.
Flash forward a hundred years and and many economists - and a recent study by the University of Illinois - agree that a middle class with a healthy disposable income is vital to a strong economy.
So, why, as WQAD reports, is the Iowa Legislature getting ready to pass a bill that would prevent local municipalities from not only raising the minimum wage beyond the state's rate of $7.25 an hour, but preventing those counties that have already raised the wage from enforcing it?
The legislation comes from a school of thought that argues that rising minimum wages will hurt business, and force cost increases to be passed on to consumers. However, the data proves the opposite. Many areas of the country that have raised minimum wages for employees have seen a boost in economic activity.
The House has already approved this ban on local minimum wage increases. Now, Senate debate will begin. In the meantime, many low-income Iowans wait to see if there livelihood will be put at risk.
Should the state be interfering with local governments to quash minimum wage increases? Sound off in the comments.