Friday, June 8, 2012 by Common Dreams
Don’t 30 Million Workers Deserve 1968 Wages?
Thirty million American workers arise, you have nothing to lose but some of your debt!
Wednesday morning, Rep. Jesse Jackson, Jr. (D-Ill.) introduced the
“Catching Up to 1968 Act of 2012” (H.R. 5901) – legislation to raise the
federal minimum wage to $10 per hour. The present minimum wage is
$7.25, way below the unrealistically low federal poverty definition of
$18,123 per year for a family of three. Adjusted for inflation, the 1968
minimum wage today would be a little above $10 per hour.
Together with Rep. John Conyers (D-Mich.), Rep. Dennis Kucinich
(D-Ohio) and Robert Weissman, president of Public Citizen, I was pleased
to be with Rep. Jackson at a news conference to explain this
long-overdue necessity for millions of hard-pressed, working Americans
of all political persuasions.
The policy behind the minimum wage, first enacted in 1938 under
President Franklin Roosevelt, was to provide a minimally livable wage.
This implied at least keeping up with inflation, if not with new living
expenses not envisioned seventy-five years ago. While businesses like
Walmart and McDonalds have been raising their prices and executive
compensation since 1968, these companies have received a windfall from a
diminishing real minimum wage paid to their workers.
The economics behind the Jackson bill are strongly supportive of
moral and equitable arguments. Most economists agree that what our
ailing economy needs is more consumer demand for goods and services
which will create jobs. Tens of billions of dollars flowing from a $10
minimum wage will be spent by poor families and workers almost
immediately.
A debate over the minimum wage throws a more
acute spotlight on the gigantic pay of the big corporate bosses who make
$11,000 to $20,000 per hour! Their average pay was up another 6 percent
in 2011 along with record profits for their companies.
Historically, polls have registered around 70 percent of Americans
favoring a minimum wage keeping up with inflation. That number includes
many Republican workers who can be consoled by learning that both Mitt
Romney and Rick Santorum, during their political careers, have supported
adjusting the minimum wage.
Were the Democrats in Congress to make this a banner issue for
election year 2012, their adversaries, Speaker John Boehner (R-Ohio) and
Senator Mitch O’Connell (R-Ky.), would not be able to hold 100 percent
of their Republicans on this popular issue. That means the bill’s
backers could override these two rigid ideologues – so-called public
servants – who make nearly $200 per hour plus luscious pension, health
insurance, life insurance and other benefits.
President Obama, who has turned his back on many worker issues, can
champion his promise in 2008 to press for a minimum wage of $9.50 by
2011 as well as benefit his campaign by helping people who have lost
trust in government and their enthusiasm over Obama’s “hope and change.”
Getting the attention of 30 million potential voters can change the
dynamics of a tediously repetitive Obama-Romney campaign.
A debate over the minimum wage throws a more acute spotlight on the
gigantic pay of the big corporate bosses who make $11,000 to $20,000 per
hour! Their average pay was up another 6 percent in 2011 along with
record profits for their companies.
If the Democrats want intellectual heft to rebut the carping, craven
objections of the corporatist think tanks and trade associations, headed
by bosses making big time pay themselves, they cannot do better than to
refer to Alan Krueger, the former Princeton professor and now chairman
of the White House Council of Economic Advisers to President Obama, who
is the leading scholar behind inflation-adjusted minimum wages producing
net job growth.
Moreover, there is no need to offset an inflation-adjusted minimum
wage with lower taxes on smaller business. Since Obama took office there
have been 17 tax cuts enacted for small businesses.
Many organizations with millions of members around the country are on
the record, if not on the ramparts, as favoring an inflation-adjusted
increase in the federal minimum wage. They include the AFL-CIO and
member unions, especially the nurses union, the NAACP and La Raza, and
the leading social service and social justice nonprofits.
In 2007 at the “Take Back America” conference, then Senator Obama
delivered a ringing oration making “the minimum wage a living wage
(tied) to the cost of living so we don’t have to wait another 10 years
to see it rise.” Even Ontario, Canada’s minimum wage is $10.25 per hour.
So why aren’t all these supporters of the minimum wage inside and
outside of Congress making something happen? Because they’re either out
of gas and need to be replaced, or they are waiting on each other to
make the first move.
The nonprofits and the labor unions are waiting on a signal from
senior legislator, Rep. George Miller (D-Calif.). Minority Leader Nancy
Pelosi and the House Democratic Caucus are also waiting for Miller, who
has not introduced a bill increasing the minimum wage since Obama took
office (the Fair Minimum Wage Act of 2007 was the last, with increases
to $7.25 ending in July 2009). Of course, in turn, Obama is waiting on
the Democratic leadership in Congress who, though firmly behind the
increase, is waiting on Obama and, of course, Miller, who hails not from
Dallas, Texas, but from the progressive San Francisco Bay area of
California. Go figure.
So maybe this cycle of insensitive lethargy by the Democratic Party
can be broken by the congressional stalwarts who have joined with Rep.
Jesse Jackson, Jr. in supporting his proposal (H.R. 5901) for a modest
increase in the minimum wage to help tens of millions of downtrodden
workers catch up with 1968!
For more information on efforts to raise the federal minimum wage, see:
