July 24 Raise in Federal Minimum Wage Still No Living Wage

Did you know that roughly 10 percent of the U.S. workforce will benefit from the upcoming raise in the federal minimum wage?

On July 24, 2009, the last of three scheduled raises in the federal minimum wage will take effect, increasing the per hour rate from $6.55 to $7.25.

In these economically hard times, raising the minimum wage makes good economic sense. It boosts consumer spending and stimulates the economy.

According to the Economic Policy Institute [PDF], "The first two increases, [which] took effect in July 2007 and July 2008, will have generated an estimated $4.9 billion of spending by July 2009." The upcoming increase is "expected to generate another $5.5 billion over the following year."

Unfortunately, while this boost is a move in the right direction, $7.25 per hour is still a poverty wage, adding up to just $15,080 a year for a full-time worker.

In fact, the $7.25 minimum wage is so overdue that by the time it takes effect later this month, it will likely be worth less in inflation-adjusted dollars than when it was set at $5.15 in 1997, before the Fair Minimum Wage Act of 2007 prescribed the three-step raise.

UUSC and its partner Let Justice Roll are continuing the movement for a living wage by promoting "$10 by 2010" as an important, reasonable step toward making up lost ground and recognizing the valuable contributions of all workers in this economy — and we are building strong support among the faith and business communities along the way.

Add your name to the Faith Leader letter of support or general public sign-on in support of the $10 in 2010 campaign!

Check back for more updates on events and commentary related to the July 24 minimum wage raise, including Let Justice Roll's newly designed website, due to launch in early July 2009.