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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWhy the Minimum Wage Should Really Be Raised to $15 an Hour
https://www.commondreams.org/view/2014/04/09***SNIP
Here are seven reasons why:
1. Had the minimum wage of 1968 simply stayed even with inflation, it would be more than $10 an hour today. But the typical worker is also about twice as productive as then. Some of those productivity gains should go to workers at the bottom.
2. $10.10 isnt enough to lift all workers and their families out of poverty. Most low-wage workers arent young teenagers; theyre major breadwinners for their families, and many are women. And they and their families need a higher minimum.
3. For this reason, a $10.10 minimum would also still require the rest of us to pay Medicaid, food-stamps, and other programs necessary to get poor families out of poverty thereby indirectly subsidizing employers who refuse to pay more. Bloomberg View describes McDonalds and Walmart as Americas biggest welfare queens because their employees receive so much public assistance. (Some, like McDonalds, even advise their employees to use public programs because their pay is so low.)
4. A $15/hour minimum wont result in major job losses because it would put money in the pockets of millions of low-wage workers who will spend it thereby giving working families and the overall economy a boost, and creating jobs. (When I was Labor Secretary in 1996 and we raised the minimum wage, business predicted millions of job losses; in fact, we had more job gains over the next four years than in any comparable period in American history.)
pipoman
(16,038 posts)I have a problem with a uniform national minimum wage. A 2 bedroom apartment where I live can be had for around $500. A similar 2 bedroom apartment where my son lives, in So. Cal is around $1200. Utilities are significantly higher, food is higher, fuel is higher in So. Cal. Not sure why we should impose the same expense on employers here who have necessarily less revenues than a So. Cal counterpart.
jamzrockz
(1,333 posts)My 2 bedroom apartment in Omaha in a good part of town costs me a little over 500. This same cannot be said for someone living in New york city or California. The minimum wage shouldn't just be adjusted according to inflation but standard of living should be worked into the calculations. Not doing so will cause a lot of unforeseen problems to local business made to pay a living wage for a city like New York
PasadenaTrudy
(3,998 posts)some new apts being advertised out in Hollywood. Studios are starting at $1,900.00. Insane, even by SoCal standards...unless near the beach where Santa Monica studios can easily be $2K a month.
jeff47
(26,549 posts)Individual states and cities are free to raise their minimum wage above that floor.
pipoman
(16,038 posts)NYC or So. Cal isn't the same as in Kansas.
jeff47
(26,549 posts)A $15/hr minimum wage is about $30k per year for a full-time job. Rent in expensive cities is going to be around half of that income.
pipoman
(16,038 posts)Fuel costs more, taxes are higher...the minimum wage is based on cost of living someplace....pretty sure it isn't nebraska. Businesses in Nebraska sell things cheaper and pay people less. People here making $15 are able to live pretty well. ..pretending that there is no difference in cost of living, and one size fits all is silliness. If minimum wage is $15 in Kansas, it should be $30 in NYC or LA.
jeff47
(26,549 posts)I'm saying you set a national floor, and expensive states and cities can set a higher one. You need this flexibility because "expensive" isn't consistent - Detroit used to be much more expensive, for example.
As for living it up in NE or KS on $15/hr, that's because $15/hr includes the productivity gains since the 1960s. The $10.10 figure just covers inflation. But people get about 50% more work done per day thanks to productivity gains. Resulting in the $15 number.
And let's face it, most likely $15 will be used as the "crazy liberals want HOW MUCH?!?!" number. Resulting in $10.10 looking reasonable, and thus able to pass.
pipoman
(16,038 posts)Expensive states don't set a higher one, thus they need to be required to pay more?
After all, the majority of the strikes and protests have been in the high states and cities, not in Kansas.
The issue is that living here is cheaper, by applying the same minimum here as there it has a negative impact on these less expensive states. This could be changed simply by setting the minimum based on standard of living in the area applied rather than applying the NYC or LA living wage here.
jeff47
(26,549 posts)Alternatively, you could actually read the posts you are replying to.
And again, if you were reading the posts you replied to, you'd have found out that $15 is low for those expensive places you are so terrified about.
pipoman
(16,038 posts)And employers in less expensive places are penalized.
You don't seem to understand or care that a $15 minimum wage applied in Nebraska would have a dramatic effect on jobs and businesses. It would have no measurable effect on businesses in So.Cal. Why should business in an area with half the cost of living be required to pay the same minimum as an area with twice the cost of living?
Saying it is a floor over and over in the face of the argument I am presenting doesn't make the statement any less silly.
I can support a $10 minimum, I oppose a $15 minimum.
LuvNewcastle
(16,855 posts)so companies get back the money spent on raises. There are other reasons why the wage is kept so low, the main one being that they want to keep people desperate so they can pay them whatever they want in this 'new economy' that is emerging.
geckosfeet
(9,644 posts)Business claims and fears that raising the minimum wage will cause job losses is simply a knee jerk reaction. History disproves their fears and lies.
4. A $15/hour minimum wont result in major job losses because it would put money in the pockets of millions of low-wage workers who will spend it thereby giving working families and the overall economy a boost, and creating jobs. (When I was Labor Secretary in 1996 and we raised the minimum wage, business predicted millions of job losses; in fact, we had more job gains over the next four years than in any comparable period in American history.)
5. A $15/hour minimum is unlikely to result in higher prices because most businesses directly affected by it are in intense competition for consumers, and will take the raise out of profits rather than raise their prices. But because the higher minimum will also attract more workers into the job market, employers will have more choice of whom to hire, and thereby have more reliable employees resulting in lower turnover costs and higher productivity.
6. Since Republicans will push Democrats to go even lower than $10.10, its doubly important to be clear about whats right in the first place. Democrats should be going for a higher minimum rather than listening to Republican demands for a smaller one.
7. At a time in our history when 95 percent of all economic gains are going to the top 1 percent, raising the minimum wage to $15 an hour isnt just smart economics and good politics. Its also the morally right thing to do.
Why the Minimum Wage Should Really Be Raised to $15 an Hour
hughee99
(16,113 posts)that in the long term, "businesses directly affected by it are in intense competition for consumers, and will take the raise out of profits rather than raise their prices"? It seems to me that when some fundamental cost goes up for ALL competitors, prices eventually rise across the board.
geckosfeet
(9,644 posts)have to be made.
But I do think that raising the minimum wage must be done.
hughee99
(16,113 posts)but I think it's fantasy to believe that companies will take this increased expense all out of profits instead of raising prices.
daleanime
(17,796 posts)hughee99
(16,113 posts)Based on the argument laid out, it should be MUCH higher, right?
Starry Messenger
(32,342 posts)socialist_n_TN
(11,481 posts)I'm ready to advocate for a living wage based on community standards. Also job sharing at no loss of pay until everyone who wants a job has one. And you take it out of profits, not by raising prices.