Senator Ted Kennedy (D-Mass.) offered this amendment to the Defense authorization bill (S. 2766). If implemented, the amendment would increase the national minimum wage from $5.15 to $7.25/hour within the next two years. Although a minimum wage increase sounds like an easy way to alleviate poverty in this country, it actually raises poverty. This is true because companies can not afford to hire entry-level workers and train them for careers; companies are forced to lay off workers they presently have on staff; and additional people are added to the welfare roles.
The Senate rejected Kennedy’s amendment on June 21, 2006 by a vote of 52-46 (Roll Call 179). We have assigned pluses to the nays because it is unconstitutional for the government to prohibit citizens from working for less than a government-set price.
