Tuesday, January 03, 2006

A Decent Wage

While Congress has managed to reward the wealthy with tax cuts, it sadly has not yet found the time or the compassion to raise the minimum wage. As a result, the class known as the working poor has grown even larger. The NY Times spoke to the issue in an editorial today.

The federal minimum wage has been a paltry $5.15 an hour for more than eight years. Polls show that there is strong popular support for raising it, but Congress has resisted. Unions, community groups and advocates for the poor are increasingly taking the matter directly to voters through state referendums to raise their states' minimum wages, according to an article yesterday in The Times. Their intentions are laudable, but the efforts only highlight Congress's failure to set the federal minimum wage at a reasonable level.

The federal minimum wage got its start in 1938, when the Fair Labor Standards Act required the employers it covered to pay workers at least 25 cents an hour. Because the law is not indexed for inflation, Congress has to pass legislation to increase the minimum wage. Its record of doing this is disappointing. The last time the minimum rose was in September 1997. Since then, according to the Center on Budget and Policy Priorities, the minimum wage's purchasing power has fallen more than 15 percent. It is now less than one-third of the average wage for private nonsupervisory workers - the lowest percentage in 56 years.

...In 2004, supporters of a higher minimum wage had impressive success in statewide votes. In Florida and Nevada - both states that went for President Bush - voters passed referendums to increase their states' minimum wage laws by margins of roughly 70 to 30 percent. This year, there may be ballot initiatives in seven states, including Ohio and Michigan (and Nevada will vote again). Some political analysts say the initiatives could help Democratic Congressional candidates by drawing low-income voters to the polls, just as referendums in 2004 to oppose gay marriage helped the turnout of Republican-leaning voters who are religious conservatives.
[Emphasis added]

Raising the minimum wage is supported by a majority of Americans, even those who self-identify as social conservatives, according to the editorial (which cites a Pew Research Poll). Unfortunately it is opposed by business, especially restaurant owners, and it is to those voices which apparently the Republican controlled Congress is listening.

That the people have gone to the state level to rectify this inequity, primarily via the initiative route, is understandable. The editorialist suggests that this type of legislation is best done by the professionals whose job it is (the state legislatures), but the ballot initiative is often the only way available to break through the wall of lobbyists in state capitals. I generally am annoyed by the lengthy and confusing ballots California is famous for, but sometimes even I recognize this problem. If having states embarrass Congress is the only way to get something done for those who are not have-mores, then I can live with a complicated state ballot.

1 Comments:

Anonymous Anonymous said...

Just on the fly- great thread. Minimum wage increase would :
1)stimulate demand in terms purchase power
2)increase revenues in taxable income
3)increase profit for retailers

-Mr.M

5:53 AM  

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