New Jersey Raises Minimum Wage

New Jersey just became the fifth state to add a minimum wage in its constitution

Washington Post- November 5, 2013

1. http://www.washingtonpost.com/blogs/govbeat/wp/2013/11/05/new-jersey-just-became-the-fifth-state-to-add-a-minimum-wage-in-its-constitution/?tid=auto_complet
2.  Category of Problem/Issue identified in article: Economy / Legislation
3. Level of problem/issue: State
4. This article is concerning an enacted policy that is being enforced to help a problem individuals and families face.
5. The problem affects individuals and families because of the impact an increase in pay will have on their lives. If minimum wage were to increase nationwide, there is a possibility that the number of families below the poverty line would decrease.
6. The number of people living below the poverty line is astonishing, even more so knowing that the poverty line is actually set quite a bit lower than it really should be. What does this mean? It means there are several families who are barely making it by; however, are not considered to “in poverty”. In order to keep America’s families afloat amidst increasing sale prices and inflation, pay must increase. A few states have caught on to this dilemma and decided to do something about it. I think it is extremely economical for New Jersey to increase the wages. In fact, I feel like this should be enforced by the federal government nationwide. One concern I have previously blogged about was the inconsistent tipping that happens among travelers. Servers in some states get paid $10 an hour plus benefits, so it is socially acceptable to not tip any more than 10%; however, here in Texas, we are only receiving $2.13 an hour with majority, if not all of it, going to federal taxes. As a result, food servers in Texas rely on the 15-20% tip they receive. I do have two concerns with these states adding minimum wage to their constitutions. My first concern is, is the minimum wage for food servers increasing from 2.13 as well? And my second question is directed towards the recently reelected New Jersey governor. If he previously refused to sign the bill increasing minimum wage to $8.50 (only $0.25 more) with automatic adjustments because it was “bad for the economy”, why would he think a increasing it to $8.25 over three years while increasing the earned income tax credit be any better?