Informed Opinions on Today’s Topics : Wage Plan Has Both Fans and Opponents

Congress is wrestling over a proposal to raise the minimum wage for the first time since 1991 when it was set at $4.25 an hour. One proposal would raise it to $5.15.

Opponents say that businesses would reduce the number of employees to give others the extra money, which would throw more people out of work and weaken the economy.

Supporters say an increase would offer a fare wage, improve workers’ buying power and boost the economy.

Should the minimum wage be raised?

U.S. Rep. Anthony C. Beilenson (D-Woodland Hills):

“We should raise the minimum wage because it will help strengthen working families. It will reward work. It will help the economy and it’s the right thing to do . . . The 90-cent increase over the next two years that Democrats are advocating represents a very modest step in restoring the value of the minimum wage . . . The increase would not only improve the productivity of those workers, but also give them greater spending power. That has to be good for American businesses in the long run.”

Alan Ungar, certified financial planner, Calabasas:

“I think it is appropriate to increase the minimum wage. . . . I do not buy that all of a sudden we’re going to lose jobs . . . There is another issue which is a problem. That is when the minimum wage is raised, so is everything else. That is the biggest danger with the minimum wage--if we do this, prices are going to go up.”

Richard Herzer, president, IHOP Corp., Glendale:

“I don’t think we should. . . . I think the market should be able to take care of itself. I think people who go in at a low wage should have an incentive to go higher . . . A major portion of the first-time wage earners are in food service and . . . anybody in food service generally promotes very quickly if they basically apply themselves.”

Jeff Farber, director of social services at the L.A. Family Housing Corp, which operates the Valley Shelter in North Hollywood:

“I believe that the wages that people earn should be an amount of money they could be able to live on adequately. Our current minimum wage keeps people below the poverty level for a family of three . . . We find people having to make some really difficult choices . . . On minimum wage, a family is grossing $170 a week. If they’re supporting a family of three on that, they’re going to pay their entire net to rent. Some people work minimum wage jobs that are living here.”

Bob Pearlman, certified public accountant in Woodland Hills:

“I don’t think it should. I think it is anti-business. I think business owners and entrepreneurs should have the option to be capitalistic . . . I think if you raise the minimum wage it’s cutting into the profit margin for the business person. Something will have to be cut somewhere, whether with numbers of employees or quality or something else.

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