Bredesen Open to Raising Minimum Wage in Tennessee

From The Chattanooga Times Free Press:

Various state lawmakers have proposed bills that would create a state minimum wage that would exceed by $1 to $2 the federal rate, which has been $5.15 an hour since 1997. Gov. Bredesen earlier this month said he supported increases at the federal level but was reluctant to back creation of a Tennessee minimum wage. He said he feared such a move might drive jobs to other states or even overseas but wanted to look at the issue more closely.

He said Wednesday that his concern was that creating a state minimum wage could cause job losses in rural communities.

"I’ve looked at it, and I don’t think that’s going to happen," he said.

Gov. Bredesen estimated that 60 percent of minimum wage jobs in Tennessee are in the retail or food service sectors. Those jobs will not be leaving the state, he said.

Kudos to Phil the Chill. In a state with one of the nation's most regressive tax policies (nearly a 10% sales tax on just about anything), people need to make more than the never-adjusted-for-inflation federal minimum wage of $5.15, which will only pay for rent, food, and utilities if one works about 75 hours a week.

For another take on how to raise wages, see my Fair Wage Plan.