Minimum Wage, Maximum Politics
A few days ago (6/21/06) Senate Democrats proposed an increase to the Federal minimum wage, in increments of 70¢ over the next two years, to $7.25. They knew they didn’t have the votes, but were looking to position themselves as champions of a minimum wage hike during an election year.
Republicans then brought forward their own plan to incrementally raise the Federal minimum wage to $6.25, and included provisions that they claimed would help businesses, mostly through tax breaks to restaurants, and by reducing obligations to pay overtime hours. They knew that Democrats would never except their plan, allowing Republicans to say that they had tried to raise the minimum wage, but Democrats opposed it.
So there were two plans for increases, both were defeated, and the Federal minimum wage remains exactly where it's been for the last nine years, at $5.15. The only time since FDR and the New Deal that more years have passed without an increase occurred during the Regan/Bush Sr. administrations. Keep in mind that to meet the Democrats' proposed increase, the Federal minimum wage would have only had to have been raised 19¢ each year since 1996.
Republicans’ main objection (and some economists as well) is that raising the Federal minimum wage will cause layoffs and increase unemployment. They say this is a well known, proven fact… except that it isn’t. Clinton gave states the ability to raise their minimum wages above Federal standards, and since then ten have raised theirs $1 above Federal guidelines, while another ten states have raised it by over $2. Unemployment crises? Layoffs? Didn’t happen. Most statistics even show that the number of Americans living below the poverty line dropped in relation to the increases.
The press tells us where the parties stand on this issue, but seldom mention how anyone else feels. What about charitable organizations? What about minority organizations? What do religious organizations think? Doesn’t anyone have a quotable position on whether we should raise the Federal minimum wage?
Here are some recent survey findings:
•82% support raising minimum wage –Pew Research Center, 2005
•75% support raising minimum wage –Christian Science Monitor, 2001
•81% support minimum wage increase –Gallup Organization, 2001
Working a 40 hour week at the current minimum wage means you’ll earn roughly $10,712 a year. That's working fifty-two weeks straight, and before any taxes or withholdings. It's also $5,888 below the U.S. poverty line for a family of three.
Republicans then brought forward their own plan to incrementally raise the Federal minimum wage to $6.25, and included provisions that they claimed would help businesses, mostly through tax breaks to restaurants, and by reducing obligations to pay overtime hours. They knew that Democrats would never except their plan, allowing Republicans to say that they had tried to raise the minimum wage, but Democrats opposed it.
So there were two plans for increases, both were defeated, and the Federal minimum wage remains exactly where it's been for the last nine years, at $5.15. The only time since FDR and the New Deal that more years have passed without an increase occurred during the Regan/Bush Sr. administrations. Keep in mind that to meet the Democrats' proposed increase, the Federal minimum wage would have only had to have been raised 19¢ each year since 1996.
Republicans’ main objection (and some economists as well) is that raising the Federal minimum wage will cause layoffs and increase unemployment. They say this is a well known, proven fact… except that it isn’t. Clinton gave states the ability to raise their minimum wages above Federal standards, and since then ten have raised theirs $1 above Federal guidelines, while another ten states have raised it by over $2. Unemployment crises? Layoffs? Didn’t happen. Most statistics even show that the number of Americans living below the poverty line dropped in relation to the increases.
The press tells us where the parties stand on this issue, but seldom mention how anyone else feels. What about charitable organizations? What about minority organizations? What do religious organizations think? Doesn’t anyone have a quotable position on whether we should raise the Federal minimum wage?
Here are some recent survey findings:
•82% support raising minimum wage –Pew Research Center, 2005
•75% support raising minimum wage –Christian Science Monitor, 2001
•81% support minimum wage increase –Gallup Organization, 2001
Working a 40 hour week at the current minimum wage means you’ll earn roughly $10,712 a year. That's working fifty-two weeks straight, and before any taxes or withholdings. It's also $5,888 below the U.S. poverty line for a family of three.
posted by Stomple at 11:39 PM
2 Comments:
Noone should be trying to feed a family of 3 on minimum wage. All I am saying is that some people need to get out and try to gain better skills and get a better job.
I agree, but you have to admit that after nine years without any sort of increase, the Federal minimum wage seems overdue for some sort of adjustment. Unemployment benefits have risen, government employee pay has risen, social security and veterans’ benefits have risen… minimum wage earners seem to be the only group overseen by Congress and the Senate to have been left behind and forgotten.
Post a Comment
<< Home