President Obama called for raising the minimum wage to $9 an hour, during his State of the Union address last night, which would lift millions of Americans above the poverty line.
Obama correctly pointed out that wages have not kept up with the rising costs of living.
According to ThinkProgress.org, Rep. Paul Ryan (R-WI) and Sen. Marco Rubio (R-FL) both said on morning news shows that they oppose raising the minimum wage because it will somehow hurt job creation.
"I think it’s inflationary. I think it actually is counterproductive in many ways. You end up costing job from people who are the bottom rung of the economic ladder. Look, I wish we could just pass a law saying everybody should make more money without any adverse consequences," said Rep. Ryan.
Sen. Rubio added: "I want to see people making a lot more than $9 an hour in the United States. And the way do you that is through rapid economic growth where people are being paid a lot more than that. $9 is not enough. I think we all would want that. The question is is a minimum wage the best way to do it?"
"And history has said the answer is absolutely not. In fact, the impact of minimum wage usually is that businesses hire less people. That’s the impact of it. They’ll just hire less people to do the same amount of work…We have a lot of history to prove that the minimum wage , raising the minimum wage does not grow the middle class."
However, a 2010 study published in the Review of Economics and Statistics found “no detectable employment losses from the kind of minimum wage increases we have seen in the United States.” A 2011 study “found no impact on hours worked or employment levels.”