The All-Nite Images A recent rally in New York to raise the minimum wage of fast-food workers: It's a controversial idea that's popular among many politicians, including Texas gubernatorial candidate Wendy Davis.
Amid the storm of fast-food worker protests for better pay, Democratic candidate for governor Wendy Davis announced late last week her plan to boost Texas' minimum wage to $10 per hour, which is generally how much national cost-of-living studies say is necessary for struggling workers to have improved quality of life.
Meanwhile, while Texas business organizations are crying out against the motion. Davis' GOP opponent Greg Abbott was predictably one of the first to speak out, saying a boost to minimum wage would hurt job growth and tarnish the "Texas Miracle" reputation. Bill Hammond, CEO of the Texas Association of Business, also thinks the "long arm of government" shouldn't be mandating wage raises.
"We see the minimum wage as a starter or training wage," says Hammond. "So if we were to boost the minimum wage overnight, the starter jobs would basically be eliminated." But Dr. Mike Davis, an SMU economics and business professor, says the issue is not so simple.More »