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Long-awaited raise

Senate, House pass bill that would raise minimum wage in Michigan for 1st time in 9 years; there might be more to it

The minimum wage hasn't been raised in nine years.

That means people who make only $5.15 an hour have been getting roughly the same salary for almost a decade, although the cost of living has changed.

Minimum wage earners have been forced to make ends meet, buy groceries and pay for rent with the same amount of pay for a long time.

The State House of Representatives and Senate attempted to change that situation this week by passing bills that would increase the minimum wage to $7.40 per hour by July 2008. The bill will now head to Gov. Jennifer Granholm for her consideration.

Hopefully Granholm will consider not only the immediate impact of the wage increase, but the unintended consequences as well.

The legislation's is not the only initiative in Michigan to raise the wage. A ballot proposal that is still gathering signatures would also raise the minimum wage and addresses people who receive gratuities, such as tips, at their jobs.

Although Michigan's minimum wage hasn't changed in a long time, it's in the same range as surrounding states, with Wisconsin at $5.70 and Illinois at $6.50. Ohio pays less at $4.25 while Indiana pays $5.15 according to the United States Department of Labor.

Although Michigan isn't far behind or ahead of surrounding states, the bill received support from Republicans and Democrats, with both parties claiming that raising the wage was something Michigan citizens supported.

Of course the idea of increasing the wage seems very appealing. Who doesn't believe a person, who works hard at a low-paying job, should get paid enough to survive?

But the reality is that raising the minimum wage so drastically could hurt the people it is intended to help.

According to the Associated Press, about 90,000 of Michigan's 2.9 million workers were paid at or below the minimum wage in 2004.

Many, including Republicans, believe raising the wage requires business owners to pay more.

They might make up for paying more by hiring fewer workers, cutting employees or raising prices.

Those are not things anyone wants to see happen.

Many who make minimum wage are supporting families, but many are also high school and college students trying to make a few bucks.

If businesses decide to cut jobs to make up for having to pay more, those who need jobs are going to be at a disadvantage. No one wants to see college students or those supporting families struggle to find jobs.

Raising the wage seems like a short-term solution for the problems that plague Michigan's economy. Anything that could increase the unemployment rate in Michigan needs some careful deliberation.

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