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Raising the Minimum Wage: Don't Stop Now!

It's awfully tough to live on $5.85 an hour.
August 15, 2007  |  
 
 
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OK, after ten years - ten years! -- we finally have a new federal minimum wage. But guess what? It's not enough, not nearly enough.

If you think it is, picture yourself trying to live on $5.85 an hour, the new rate that went into effect July 1. Or how about $6.55, next year's rate. Or even $7.25, the minimum that Congress generously set for 2009.

Say you work full-time at the minimum, eight hours a day, five days a week. For the rest of this year you'll be making $46.80 a day, $234 a week. When the top rate kicks in two years from now, you'll be getting a grand total of $58 for a day's work, $290 for a week, just a little more than $15,000 for the year's work. And that's minus taxes and other payroll deductions.

Can that really be all that the wealthiest country in the world can afford? Does that meet the legal requirement, spelled out in the Fair Labor Standards Act, that the minimum be set high enough to guarantee "a standard of living necessary for health, efficiency and general well-being"?

A poverty-level existence, or something very near to it, is what it actually guarantees the 20 million Americans who are paid at or near the minimum.

Which is why leaders of the labor movement and the Democratic Party already are urging that the rate be raised again as soon as possible. That would be in 2010. That's much too long to wait, and the suggested rate of $9.50 an hour is at least a dollar or two short of what it should be. But politically, that's the best we can expect.

It is certain, in any case, that Democratic Sen. Ted Kennedy of Massachusetts will soon introduce a bill to put a $9.50 minimum into effect a year after the $7.25 rate becomes law. The bill may also include a provision that would automatically raise the minimum to match increases in the rate of inflation or in some other measure of the cost of living.

The pay of Congress members is adjusted that way, after all. That got them raises amounting to more than $31,000 during the decade in which they refused to raise the minimum pay of the working poor. So their minimum wage is now $168,500 a year, counting this year's raise of $3,300. All that plus free health care, pensions and other expensive benefits that are not available to the minimum wage earners among their constituents.

Sen. Kennedy, key sponsor of the bill that raised the minimum this year and of previous bills that Congress' former Republican majority blocked, will have plenty of Democratic co-sponsors. He'll also have the support of at least one of the Democrats' presidential candidates, former Sen. John Edwards, for what Kennedy thinks will be a major issue in the 2008 election.

Edwards wants a provision that would automatically raise the minimum yearly to match any increase in the average pay of U.S. workers generally, which is projected to rise to more than twice the minimum by 2009.

So who are these minimum wage workers whose plight should absolutely be a major issue?

No, they're not middle-class teenagers flipping hamburgers for extra spending money or other second earners in fairly well-off families who are cited frequently by opponents of minimum wage increases who should know better - and probably do.

Actually, more than one-third of those paid the minimum are the main or sole support of their families. Almost two-thirds are women, including some 750,000 single mothers. More than one-third are African-American, Latino or Asian. Many are recently arrived immigrants.

Most work in the service or retail fields or in agriculture, many doing such vital work as caring for elderly nursing home patients or the children of working mothers, and many doing some of society's dirtiest and most thankless tasks. Many can't find full-time jobs of any kind, even at the bare minimum. Only a few belong to unions or have other protection aside from the law.

But what of that other bit of fiction spread by opponents, their flimsy argument that raising the minimum forces employers to eliminate jobs? Don't you believe it.

Just the opposite has happened after each of the 19 previous times the minimum has been raised since it was initially set at 25 cents an hour in 1938. The job growth has been spurred primarily by the increased spending of those whose pay has been increased.

What's more, the raises have benefited employers, since increasing workers' pay raises their morale and, with it, their productivity, while decreasing absenteeism and recruiting and training costs.

Taxpayers would benefit, too, since so much of the billions paid out in public assistance goes to families whose working members do not earn enough at the current minimum wage to be self-supporting.

Pardon the cliché, but raising the minimum to at least $9.50 is strictly a no-brainer.
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Comments are closed-

How little is not enough
Posted by: Conservasaurus on Aug 15, 2007 12:19 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Its just as hard living on $7.50/hour.. the trick is NOT to make min wage!

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]


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Why!?
Posted by: daniel1982 on Aug 15, 2007 1:31 PM   
Current rating: 1    [1 = poor; 5 = excellent]
I don't understand libs - Every economist out there says minimum wage is a bad idea. Why is this fact completely ignored?!

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» Nonsense ... Posted by: Joshua Holland

Comments are closed-

The solution is so simple...
Posted by: Crazy H on Aug 15, 2007 5:57 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Pay all elected officials minimum wage. (also applies to unelected white house residents... ;-)

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» RE: The solution is so simple... Posted by: Conservasaurus
» Libertarians still Moronic. Posted by: yellow
» Anyone have a plan??? Posted by: Conservasaurus
» Are you mad? Posted by: Joshua Holland

Comments are closed-

Chairman, PA House Dem Caucus
Posted by: Mark B. Cohen on Aug 15, 2007 7:45 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
I commend Senator Ted Kennedy for offering bold national leadership in seeking to raise the minimum wage to $9.50 an hour in the second half of 2009. I had previously in both 2006 and 2007 introduced a proposal in the Pennsylvania legislature calling for a minimum wage of $9.35 an hour as of January 1, 2010, and I am delighted to support this very similar proposal.

Raising the minimum wage to $9.50 in the second half of 2009 will be a meaningful and dramatic step to reward work and entice non-workers into the job market. It will dramatically reduce the vacancies in many areas, and will provide a big boost in tax revenues and add to the fiscal stability of the Social Security Trust Fund.

Raising the minimum wage so that its recipients do not have to live in poverty if they have two dependents makes good moral sense as well as good ecnomic sense. Work should pay enough for a small family not to be poor. If we cannot meaningfully help full-time year around workers get out of poverty, who can we help get out of poverty?

Ted Kennedy's deep and sincere commitment to aid American workers and low-income people has long been hobbled by a very conservative political climate. Now that the conservative dominance is eroding, long-standing goals for the betterment of our citizens have a chance that they did not have before.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Sorry, this comment has been removed from the system.
Alternet Comments:

Comments are closed-

How little is not enough
Posted by: Conservasaurus on Aug 15, 2007 12:19 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Its just as hard living on $7.50/hour.. the trick is NOT to make min wage!

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]


Comments are closed-

Why!?
Posted by: daniel1982 on Aug 15, 2007 1:31 PM   
Current rating: 1    [1 = poor; 5 = excellent]
I don't understand libs - Every economist out there says minimum wage is a bad idea. Why is this fact completely ignored?!

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» Nonsense ... Posted by: Joshua Holland

Comments are closed-

The solution is so simple...
Posted by: Crazy H on Aug 15, 2007 5:57 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Pay all elected officials minimum wage. (also applies to unelected white house residents... ;-)

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» RE: The solution is so simple... Posted by: Conservasaurus
» Libertarians still Moronic. Posted by: yellow
» Anyone have a plan??? Posted by: Conservasaurus
» Are you mad? Posted by: Joshua Holland

Comments are closed-

Chairman, PA House Dem Caucus
Posted by: Mark B. Cohen on Aug 15, 2007 7:45 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
I commend Senator Ted Kennedy for offering bold national leadership in seeking to raise the minimum wage to $9.50 an hour in the second half of 2009. I had previously in both 2006 and 2007 introduced a proposal in the Pennsylvania legislature calling for a minimum wage of $9.35 an hour as of January 1, 2010, and I am delighted to support this very similar proposal.

Raising the minimum wage to $9.50 in the second half of 2009 will be a meaningful and dramatic step to reward work and entice non-workers into the job market. It will dramatically reduce the vacancies in many areas, and will provide a big boost in tax revenues and add to the fiscal stability of the Social Security Trust Fund.

Raising the minimum wage so that its recipients do not have to live in poverty if they have two dependents makes good moral sense as well as good ecnomic sense. Work should pay enough for a small family not to be poor. If we cannot meaningfully help full-time year around workers get out of poverty, who can we help get out of poverty?

Ted Kennedy's deep and sincere commitment to aid American workers and low-income people has long been hobbled by a very conservative political climate. Now that the conservative dominance is eroding, long-standing goals for the betterment of our citizens have a chance that they did not have before.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Sorry, this comment has been removed from the system.
 
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