Why Raise the Minimum Wage?
This sobering situation -- reality for almost 1 in 4 adult workers in the United States -- is shown in Roger Weisberg's alarming and heart-wrenching new documentary, "Waging a Living," which puts a human face on the growing economic squeeze that is forcing millions of workers into the ranks of the poor.
A recent article, "Working Family Blues" by Robert L. Borosage, also highlights the growing epidemic of what happens when the American "work ethic" bears no relationship to its "wage ethic."
Today, many more middle-class workers are feeling the pinch with soaring housing, health care, and gasoline and heating oil costs. Across the United States, people across the spectrum of class, political affiliation, and faiths are starting to take notice.
As part of this trend, I've been fielding some excellent questions about wages, globalization, and U.S. competitiveness in the international marketplace.
Karen Kallay, chair of the social justice committee at the Unitarian Universalist Fellowship of Fredericksburg in Virginia writes, "a contingent of our congregation is concerned that increasing minimum wages will put the United States into a less competitive position in the international marketplace. Can you refer us to any substantive research done by universities, think tanks, etc., that addresses this concern?"
In response to Karen's question, I shared some of the recent research by leading economists and researchers, and include them here:
- The New York Times Op-Ed The War Against Wages by Paul Krugman highlights the erosion of wages and reduced job benefits in the context of soaring corporate profits and an all-time high Dow Jones Industrial Average.
- "Economists Call for Minimum Wage to be Raised" cites more than 650 economists, including five winners of the Nobel Prize for economics, in their recent call for an increase in the minimum wage.
- "Economy Booming for Billionaires" by Holly Sklar highlights the cavernous wealth gap between rich and poor in the United States providing a basis for the argument that obscene CEO salaries are making the United States uncompetitive.
- "Pastors Push Living Wage as Election Issue" cites UUSC's leadership in building the faith-led living wage movement, and highlights the efforts of Let Justice Roll to lift up wages as a moral issue.
As part of our living wage focus, UUSC partners with Let Justice Roll, a national coalition of over 80 faith-based and community groups leading the way in engaging faith-based activists in an effort to raise the minimum wage.
We've also launched a new Wage Justice initiative to answer questions, provide free tools and resources, and support your efforts to get involved in the local, state, or national level.
Join us and help strengthen the vital role that our members and supporters are playing in the living wage movement through statewide campaigns like Pennsylvania and Colorado.
Together, we can join one of the most powerful grassroots economic justice movements in the nation, and defend workers' rights as human rights!
Labels: take action, workers' rights

2 Comments:
Why raise the mimimum wage indeed?
How about some more facts?
• According to the Bureau of Labor Statistics 2002 report, of the 72.7 million hourly-wage workers in the US, only 2.2 million, a mere 3%, received minimum wages. While that's bad for them, it's not a national crisis.
• Only 5.3% of minimum-wage workers come from families below the poverty line.
• The highest proportion of minimum wage workers were in the retail trade (8%), whereas agriculture only claimed 2%.
• The vast majority of minimum wage workers either have second jobs or live with other family members and are not sole-source providers of income.
• Minimum wages provide artificial barriers to those seeking their first job experience. Unemployment among 16–19-year-olds was 17.3% in 2005, as opposed to 5.6% overall. When split out by ethnicity, Hispanic and black teens had unemployment rates of 25% and 40% respectively. (Do we want to put more teens of color out of work?) Analysts have been railing for decades about the social effects of youth unemployment, without even considering as a potential causative factor the ever-increasing minimum wage during all that time.
While the idea of raising minimum wages may provide a feel-good sound bite, it does nothing to address economic issues in specific sectors of our population that are affected most by unemployment. A productive employee won't be getting minimum wage for long, as it's in the employer's best interest to retain productive talent, and they know have to pay more for it or lose it to the competition. If minimum wages are such an economic panacea, why stop at $7.15? Why not $12, $20, or $100, and really help the unskilled?
Using the power of the government to force employers to change mutually acceptable contracts with their employees, raise prices for everyone, and put the least skilled and experienced out of work is not an effort I will participate in. How about a program to help improve job skills instead?
Tuesday, November 21, 2006
I agree with the last post. Imagine if you were the owner of a business in a competitive market. You hire unskilled labor and train them to do a job. If the price of that labor, the minimum wage, arbitrarily goes up, you have a couple of choices: 1) raise the price of your product, 2) cut the wages or stop the promotion of other employees, 3) go out of business.
Compare that to the current situation. The same owner hires and trains someone. If that person works well the owner will give the worker raises so he won't lose him to the competition. Thus the market will define the worth of a job compared to the value of the product.
Funny how market forces will always work. Government price fixing never does.
Monday, January 08, 2007
Post a Comment
<< Home