Saturday, July 03, 2010

Schwarzenegger cut pay to minimum wage for California workers

Another major sign thats economy is not right in US is when Schwarzenegger cut pay of state employees to the minimum wage in the State of California. The minimum wage rate is $7.25 an hour.

Managers who work on salary rather than receiving an hourly wage will have their pay reduced to $455 a week, according to an announcement from the state’s Department of Personnel Administration.

Other employees who are not federally protected by minimum wage requirements, such as some of the state’s doctors and lawyers, will go without pay from California’s government for the month of July.

For me the easiest solution it to increase taxes especially corporate taxes which has nearly fallen by half since 1981 and only 11% of their total revenue. But that wont happen due to TPTB and the two third majority needed to pass tax increases. There are only so much cuts that can happen to Government services before it becomes net negative for the future of the State. It also seems that pensions are big threat to the California budget and the US Economy

How long does it take for earn US minimum wage around the world

  • United Kingdom - 8 Months
  • France - 10 Months
  • Canada - 11 months
  • Brazil - 3 years
  • Russia - 5 years
  • China - 8 years

You need to know that a member of Congress who refuses to allow the minimum wage to come up for a vote made more money during last year's one-month government shutdown than a minimum wage worker makes in an entire year - Bill Clinton


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