Portland, Maine, Could Soon Increase Min Wage to an Unheard of Amount

Over the last few years, we have seen many states and even some cities across the nation raise their local minimum wages higher than the federal minimum wage, which currently sits at $7.25 per hour.

In some cases, these local minimum wages are more than double the federal minimum wage.  The State of Maine minimum wage, for example, is $14,65 per hour.  In Portland, the minimum wage is $15.00 per hour.

In most cases, these local increases have been made to better keep pace with the current cost of living and current level of inflation.

Portland is in the process of increasing the city's minimum wage to an almost unheard of amount.

The History of Minimum Wage in the United States

According to the Economic Policy Institute, the first minimum wage was part of the 1938 Fair Labor Standards Act.

In addition to setting a 40-hour work week, and forbidding the hiring of anyone under 16 years of age, the FLSA also set a $0.25 per hour minimum wage.

Overall, the purpose of the act was to prevent employees from being taken advantage of.

Over the years, the federal minimum wage has increased.  It now sits at $7.25 per hour.

You can learn more about the history of the minimum wage HERE.

A New Minimum Wage For Portland, Maine

According to an article on the WGME website, a new proposal before the Portland City Council urges a further increase to the city's minimum wage.

The proposal calls for increasing the Portland minimum wage from $15 to $20.  If approved, the increase would not happen instantly.  Instead, the increase would be phased in over the next 3 years.  The full $20 per hour minimum wage would be in place by 2028.

That would come close to the highest minimum wage in the United States.  That record currently belongs to Burien, Washington, where the minimum wage is a whopping $20.16 per hour!

Proponents of the proposal cite how much the cost of living in the city has increased over the last few years.

Many business owners have their concerns about the proposal.  They talk about what they are calling a 'trickle up' effect.  Instead of people seeing an increase in their wages because the people above them are making wore, the people who are already making the new minimum wage will see people below them start making the same as they are.  This will lead to them demanding higher wages.

In the end, this will lead to businesses charging more for products and services.  Potentially, this will take everyone back to the same level they were at before the minimum wage increase went into effect.

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