Frank Pallone: “I would urge Speaker Gingrich and the Republican leadership to let us vote on an increase in the minimum wage. In my…”

“I would urge Speaker Gingrich and the Republican leadership to let us vote on an increase in the minimum wage. In my State of New Jersey the minimum wage was increased to $5.05 an hour, two Princeton University economists, David Card and Alan Kruger, surveyed patterns in fast food restaurants in New Jersey and Pennsylvania after the minimum wage went into effect. The result suggested a moderate hike, much like the one President Clinton is proposing, has actually increased total employment. The reason is that minimum wage earners do not have the ability to save. They spend their money on basic necessities, and raising the minimum wage put more money into our local economy. The money was spent to purchase more goods, adding eventually to an increase in profits for our local businesses. The fast food industry that Card and Kruger studied found most of the people earning the minimum wage were the same people who used that increase to in fact buy more fast food. So the bottom line is a higher minimum wage increased economic activities in New Jersey. It is supported by the President and supported by most Members in both the House and the Senate, and the leadership of the Republican Party should bring it up for a vote now.”