Unions across the state of Maine are rallying today at the State House not only to gain support for an increase in the state’s minimum wage, but to also make it so there are increases in those wages that raise in conjunction with yearly inflation.

If the bill is passed, which is being sponsored by Representative Scott Hamann, the minimum wage in Maine would be raised to $8.50 in October, with annual raises in accordance with the national Consumer Price Index. Hamann says that passing this bill is the honorable thing to do as a means for continuing to stimulate the local economy.

“If we put money in the hands of the people most likely to spend it and most likely to spend it locally, this drives up consumption in Maine’s economy,” he said. “If we increase consumption and demand for goods and services, businesses will hire more to keep up with demand, which is a net win for the state of Maine.”

Since 2009, the minimum wage in Maine has been $7.50 per hour, which, incidentally, is one of 19 other states currently acting above the national rate of $7.25 per hour, according to the U.S. Department of Labor. However, the state still maintains one of the lowest minimum wages of all the New England states – only New Hampshire is lower.

Most residents agree that many local companies are still using the bad economy as an excuse for not paying higher wages, but they say that it is actually due to less-than-liveable pay rates that the economy is still stagnant – causing many full-time, hard-working Mainers to live in poverty.

Yet, many state officials say that raising the state’s minimum wage too early could result in the squeeze of many local businesses and possibly even shut them down. “Our economy just doesn’t support that kind of wage an hour increase,” said Peter Gore, vice president at the Maine State Chamber of Commerce. “From an economic standpoint, raising it by a dollar and indexing it annually, putting that element on automatic pilot, that’s just a bad idea.”

State lawmakers have attempted throughout the years to raise the minimum wage but have been unsuccessful. A national increase to $9 was recently proposed during President Barack Obama’s last State of the Union address.

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