Mark Schauer for Governor

November 18, 2013

Democratic gubernatorial candidate proposes raising minimum wage to $9.25

DETROIT – Today Democratic gubernatorial candidate Mark Schauer announced a proposal to raise Michigan’s minimum wage in Detroit. The plan would raise the minimum wage from $7.40 to $9.25 per hour, matching the real purchasing power of the minimum wage at its peak in 1968.

“This is just common-sense economics,” said Schauer. “When working families have more to spend on things like gas, groceries, and clothes for their kids, it creates demand. And when demand increases, small businesses grow and hire more workers. Minimum wage workers have waited long enough for a raise. It’s time to do what’s right for our families, our businesses, and our economy by raising the minimum wage.”

Schauer’s plan would be phased in over three years. The minimum wage would increase from the current rate of $7.40 to $8.00 in year one, $8.60 in year two, and $9.25 in year three. Moving forward, the minimum wage would then be tied to inflation. Specifically, the hourly rate should be indexed to the Consumer Price Index, with adjustments taking place every two years.

“Working hard is part of who we are in Michigan,” said Kim Pearce, a grocery store employee from Detroit. “But no matter how hard we work, families like mine are still struggling to get ahead. Raising the minimum wage would help lift up thousands of families across the state.”

According to the nonpartisan Michigan League for Public Policy, 85 percent of minimum wage employees are over age 20, 55 percent are women, and 44 percent are working full-time. Raising the minimum wage would impact more than 1 million Michigan workers.

“Raising the minimum wage will benefit the people of Michigan,” said Dr. Dale Belman, a professor of labor economics at Michigan State University. “It raises wages among the lower 10 percent of male employees and the lower 30 percent of female employees. Moreover it will raise incomes with little to no negative effect on employment.”

Mark Schauer is the Democratic candidate running to unseat incumbent Republican Gov. Rick Snyder. Schauer is a former member of Congress, and previously served in the Michigan House and as Democratic Leader of the Michigan Senate.

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