Hard Work Deserves Fair Pay: Raising New Mexico's Minimum Wage

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Though it just gave self its sixth consecutive raise, Congress has not raised the minimum wage for American workers in nearly ten years. In the past few years, more than 20 states have taken it upon themselves to raise the minimum wage. New Mexico came close to passing a raise during the past legislative session, and both Santa Fe and Albuquerque have passed local ordinances to raise their minimum wage.

No one who works full time should have to live in poverty. Hard work deserves a fair and livable wage. It's a simple matter of dignity. A statewide raise in the minimum wage will again be proposed in the 2007 session of the state Legislature. New Mexico Voices for Children supports an increase to at least $7.50 and hour, which should be indexed to rise with inflation just like congressional salaries are automatically adjusted for cost-of-living increases. Voices also believes that cities and counties should be free to enact a higher wage than the state or federal minimum.

States with Higher Minimum Wages Have Faster Job Growth

Data indicate that a minimum wage increase is an economic development tool that will strengthen the New Mexico economy. Minimum wage increases in other states and cities have proven to not only dramatically benefit the lowest paid workers but also stimulate job growth and spending while reducing employees' reliance on public assistance.

In a comprehensive 2004 study, the nonpartisan Fiscal Policy Institute (FPI) reported that since 1997 states that had boosted their minimum wage actually created 50 percent more jobs than states still at the federal level.
In the retail sector, the gap was even more pronounced. Retail growth in states with the federal minimum wage was 1.9 percent between 1998 and 2004, compared with 6.1 percent in states with elevated minimum wages. States with higher minimum wage levels saw over 300 percent more growth in the retail sector than those states at the federal level (http://www.fiscalpolicy.org/minimumwageandsmallbusiness.pdf ).

Minimum Wage Increase Reduces Welfare Rolls

A recent report from the New Mexico Department of Human Services showed that in the fiscal year ending in May 2005, when the minimum wage in Santa Fe was $8.50 an hour, 9.7 percent fewer Santa Feans received Temporary Assistance for Needy Families (TANF) than during the previous year. Comparatively, the welfare rolls statewide were down only 0.6 percent.