Despite the current state of the economy, stagnating business sectors, and an overall atmosphere of economic dread and trepidation, workers in several states could experience a boost to their hourly and yearly income thanks to an automatic increase in their respective state’s minimum wage rates.
The bumps, which all range between 28-37 cents per hour, were recently announced by Colorado, Montana, Ohio, Washington, and Oregon. While these increases don’t translate to an astronomical increase, the annual raises will be nothing to scoff at. Even though the states themselves might not be experiencing growth, and the sectors that employ minimum wage employees might be stagnating, the states all have mandatory laws which require increases in minimum wage rates that coincide with inflation.
How Minimum Wage Increases can Positively Impact the Economy.
A crucial aspect of economic recovery is the continued buying power of consumers. If wages do not accurately reflect inflation rates, consumers will be forced to cut spending in a variety of areas or face defaulting on critical aspects of their daily lives. Unfortunately, despite the increases, many workers find themselves so far in debt that the wage increases do little to increase their overall buying power.
How Minimum Wage Increases Affects Retirement Planning.
Unfortunately, most people operating in a position in which they earn minimum wage are not in a position to consider retirement planning. There are virtually no tax benefits to investing in qualifying packages because they are already most likely receiving significant returns and already qualify for most incentive programs based on taxable income.