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Jim Hightower
NationofChange / Op-Ed
Published: Wednesday 19 September 2012
“Elites in Washington, on Wall Street and in the corporate suites have taken exquisite care of themselves.”

Our Disgraceful Minimum Wage

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In natural terms, our economy is a giant sequoia. Unfortunately, our present corporate and governmental leadership can't seem to grasp one of the basic laws of nature: You can't keep a mighty tree alive (much less have it thrive) by only spritzing the fine leaves at the tippy-top. The fate of the whole tree depends on nurturing the roots.

Sadly, we're led by a myopic crew of leaf-spritzers.

Elites in Washington, on Wall Street and in the corporate suites have taken exquisite care of themselves. Blithely oblivious to the dangerous shriveling of the roots, they've increased their take by offshoring our middle-class jobs, slashing American wages and benefits, busting the ability of unions to fight back, deregulating their nefarious corporate and financial operations, dodging their tax obligations, privatizing and gutting public services (from schools to food stamps), and turning our elections into auctions run by and for billionaires, thus robbing America itself of its unifying ethos: economic fairness and social justice.

One of the least excusable of today's injustices is that in this country of unsurpassed wealth the power elites casually tolerate poverty pay as our wage floor. How deplorable that they can actually juxtapose the words "working" and "poor" without blinking, much less blushing.

Nearly 4 million Americans are being paid at or below the desiccated federal minimum wage of $7.25 an hour. For a single mother with two kids, that's $4,000 a year beneath the poverty level. Where are the ethics in a "work ethic" that rewards so many with paychecks that deliberately hold them in poverty?

Consider the kind of life $7.25 buys. At that rate, a full-time worker is taking in only $1,250 a month, before payroll taxes. Try stretching that over the basics of rent, utilities, groceries and gas. Need car repair? Lose your job? What if you get sick? Good luck.

Corporate politicos and front groups have draped a thick tapestry of myths and excuses over the miserly wage.

"The only people paid the minimum," goes one of their oldest dodges, "are teenagers working part-time summer jobs for extra cash." In fact, only 6.4 percent of these low-wage employees are teen part-timers. Contrary to the stereotype, the typical minimum-wage worker is an adult, white woman (including many single moms) whose family relies on her paycheck.

The right-wingosphere argues that lifting the wage floor would keep employers from hiring. Not true. The reason corporations aren't hiring is that consumers aren't purchasing their products, thanks to the economic realities of lost jobs, wage cuts and inflation that have shrunk the buying power of working families.

The one simple step that would immediately add juice to the consumer economy (which accounts for two-thirds of America's economic activity) is to do the one thing that boneheaded lawmakers adamantly refuse even to consider: Raise the spending power of millions of low-wage workers by hiking the legal minimum wage. Raising it to $10 an hour would elevate 30 million hardworking Americans now paid a poverty or near-poverty level income. While it would still be tough to raise a family on a $10-an-hour wage ($20,800 a year), it does move our country a lot closer to the principle that work ought to be fairly rewarded, restoring a measure of ethics to the work ethic.

Such a percolate-up solution would provide a huge and direct lift out of our present doldrums — a study last year by Chicago's Federal Reserve Bank found that every dollar increase in the minimum wage produces an immediate bump in the next year of $2,800 per recipient in consumer purchases of everything from kids' shoes to vehicles. The Economic Policy Institute (EPI) reported in a 2009 study that even a boost to $9.50 an hour would result in $30 billion a year in new consumer spending.

Numerous in-depth studies show that hiking the wage does not cause either small businesses or giants like McDonald's to rush out and slash their workforce in order to offset the relatively small cost of paying employees a bit better. To the contrary, most studies show that overall job numbers go up.

The public is overwhelmingly behind the increase. This June, a Zogby Analytics survey of likely voters found seven out of 10 supporting a raise above $10 an hour (including 54 percent of Republicans). Notably, 71 percent of young people (18 to 23 years old) favored it. Likewise, last November's "American Values Survey" by the Public Religion Research Institute showed two-thirds of Americans in favor of a $10-per-hour minimum.

The super-rich are fast separating their good fortunes from the well-being of the many. It's not just America's economy they're skewing, but our values. They're destroying the place where egalitarianism, upward mobility and the middle class once had a welcoming home. That's the fight we're in — a historic fight to decide who we Americans really are.

Copyright Creators.com


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ABOUT Jim Hightower
National radio commentator, writer, public speaker, and author of the book, Swim Against The Current: Even A Dead Fish Can Go With The Flow, Jim Hightower has spent three decades battling the Powers That Be on behalf of the Powers That Ought To Be - consumers, working families, environmentalists, small businesses, and just-plain-folks.

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25 comments on "Our Disgraceful Minimum Wage "

oldhat

September 21, 2012 11:51am

yes raise min wage and what happens the woman with 2 kids is laid off just helps USA on to 25% unemployment

Free thinker

September 21, 2012 6:23pm

Well there's some lopsided, negative thinking. Instead of raising the minimum wage , why don't we just sit back and demonize the poor. Let's sit on our hands and do nothing.

Free thinker

September 20, 2012 6:50am

Some people's responses seem driven by a lack of understanding. The imagination generates a picture of a single woman with two children who made a poor choice. Someone should be forced to pay for this! What a society we live in. I guess it would never occur to some of you smug jerks to consider how proud some of those women are when they support their kids...maybe without any $$$from dear old dad. Been there and done that. You not only don't understand but your preconceived notions stand in the way of opening your minds. Been to Europe? I'll bet you have. Maybe times are tough there, but people make a living wage regardless of the work they do. Better yet, go to a restaurant in the U.S. and tell your waiter that he/she doesn't deserve to make a living. I hope you get the legendary response.

BozoAdult

September 21, 2012 1:39am

The lack of understanding you speak of is fostered by the Fascist propaganda machine Fox "News" and the rest of them.

They are dividing the nation and scapegoating the working poor. This is exactly how the Nazis took over in Germany. They used unions, socialists, Jews and communists as scapegoats then.

John T Rice

September 20, 2012 6:36am

A few thoughts.
Corporate Profits in 2008 were 1.2 Trillion. last year Corp Profits were 1.9 Trillion. 700 Billion more.
If there are 4 million making min wage that would cost roughly 24 Billion
a year to take their pay to $10.25.
In addition to stimulating the economy better than any other thing our govt has tried in 3.5 years, raising the min wage reduces Govt cost for Food Stamps and other aid to poor which frankly is the US govt subsidizing labor. Thats right you and I are subsidizing everyone that makes below Poverty wages.
raising the min will also increase payroll tax receipts by at least 3.6 Billion a year.

Raising the min wage is not without problems but the benefits totally out weigh the negatives.

And to be totally honest rasising the min wagewill cost more than 24 Billion because there are Millions more making More than $7.25 but less than $10.25
so they would have to move up and if you were making $10 and hour now would you be OK getting a 25 cent raise and making Min wage again. So total cost could be more like 50 Billion.

But in the end the effect on our economy would be fantastic. Spending is what drives the economy. Disposable income or what is left after paying rent and necessities is the gas that fuels the economy.

TCinLA

September 19, 2012 8:55pm

I am old enough to remember when the minimum wage was a living wage. In 1967, when I first came to California, I was able to hold a 30-hour job at a minimum wage of $1.25/hour, which allowed me to have a small one-bedroom apartment in West Hollywood, eat decently, go out to dinner and a movie at least once a week, operate my car, and have money in my pocket for "incidentals."

Today, as a senior, I live at about the same level (would have done better, but 2008 took my savings - we have small 2-bedroom house we rent) as I did in 1967. My monthly income at 40 hours a week works out to about $18/hour, and if my wife wasn't making about the same for 20 hours a week of work (for a total of $23/hour over 40 hours), we wouldn't be living as decently poor as we are. In California, unlike most of the rest of the country, the minimum wage is $8.50/hour. I couldn't pay my rent, let alone my other bills, on the California minimum wage, and even if we had food stamps, we couldn't make it on the California minimum wage if we both worked 40 hours a week. And that's with getting Social Security, too.

Ed Bradford

September 19, 2012 7:44pm

So are you saying I should pay my 12 year old neighbor the minimum wage to babysit? Should I also pay my son the minimum wage to mow my lawn?

Should the minimum wage be set at the poverty level, so all who must work at that wage are at lease at the poverty level?

I don't think anyone can answer these questions and be comfortable with their
responses. Am I wrong?

I think one size fits all is excellent policy for the entire world. Do you?

suncoast2k

September 24, 2012 9:50am

Only if your babysitter is a card carrying member of the National Association of Parental Responsibilty Action group. Otherwise, it's your right to put a low value on the care of your children.

Your son should mow your lawn as you are teaching him household/family responsibilities, along with other duties as laundry, house cleaning, and basic meal preparation including the operation of the stove and oven. He probably already is an expert with the microwave, but that destroys the nutrition in food. You can work out an allowance scale based on his efforts in these areas, like when you were a kid.

anono

September 19, 2012 5:17pm

O-k. Lets frame this in terms other than a single mom with two kids.
At the currnt minimum wage, a typical fat assed pot bellied white guy who believes that limbuagh and beck are apostles of jesus is going to run out of money to support his 24 pack a day beer habit half way thru the nascar race. That would be real suffering. A raise in the minimum wage will at least allow him to finish the race with a good buzz on.

muratftasar

September 19, 2012 2:33pm

"Blithely oblivious to the dangerous shriveling of the roots, they've increased their take by offshoring our middle-class jobs, slashing American wages and benefits, busting the ability of unions to fight back, etc...
....
...The super-rich are fast separating their good fortunes from the well-being of the many. "

This would only hurt the rich if their good fortune depended on the purchasing power of the masses here in the US.. They don't care about the well-being of the folks here because as long as there is someone to buy what they are selling somewhere, anywhere, and the masses can not rise up to demand what is rightfully theirs, things are fine for them.

scmike1965

September 19, 2012 1:05pm

Liberals always use the example of a single mother with 2 kids but they don't say where the fathers of the kids are. Shouldn't sperm donors be paying their fair share. I have not heard anything about them.

Also, a maximum wage sounds great until you realize that Hollywood types and Rock stars make millions for a concert tour or movie. Once they get to the maximum they will stop making movies and stop doing concerts. That will hurt the ushers, guards, concessioneers and those who depend on the gigs to reach their maximum.

BozoAdult

September 21, 2012 1:32am

Hey scmike1965, maybe we can get those gas chambers fired up again. Then we wouldn't have to deal with these "useless eaters".

Ron in NM

September 19, 2012 3:17pm

SCMIKE1965:

Your use of the word "liberals" leads me to think that you're one of those who believe in a "smaller government." State agencies usually have to try to "enforce" child support, and state agencies are shrinking nowadays, because of budgetary problems, so there may not be enough enforcers to find the fathers and bring them to court.

Then, too, maybe the fathers have left the state; maybe they died, or maybe they stand outside Walmart with a hand-printed cardboard sign. You know the cliche about not being able to get blood out of a turnip.

Why are you a defender of the rich? And are the rich somehow saddled with the task of supporting the single mother? The rich don't even pay their fair share of taxes, and that's well-known.

But there are problems about raising the minimum wage. There are often great differences between living costs in different regions of the country, or different towns. If you raise the federal minimum wage to help the MW worker in NYC, it might be too generous for the employer in some small town in the South to pay.

The fair thing would be to key the minimum wage to the cost-of-living index in different places. But then, you might need bigger government to do things like that, wouldn't you?

suncoast2k

September 24, 2012 9:37am

That's a very good idea linking the livable wage to the COLI in different areas of the country. It might even be helpful to narrow it down to counties or metropolitan areas within each state, since a worker in NYC would need a higher wage than a worker in a more rural setting upstate.

But you are correct in that right-wingers are not capable of thinking in these terms, even ones who may be helped by such changes.

All the social programs that have been put in place by democrats and some now-extinct moderate republicans over the past 50-60 years are working their way to the chopping block because of the selfish right-wing nuts (Teapublicans) who cannot stand that a black man was elected president.

They are simply despicable and who some now call The American Taliban.

Mort Malkin

September 19, 2012 10:51am

If there is a (shamefully) minimum wage, why not a maximum wage. Twice the minimum should be comfortable enough. Oh, let's be extravagant — ten times minimum surely would allow an elegant lifestyle. Let's do the math. Ten times $7.25 equals $72.50 per hour or $2,900 per week or $150,800 for a 52 week year.

The way things have gone in terms of disparity of wealth in the US, we surely have become a banana republic.

Gadfly (Mort Malkin)

fastball14

September 19, 2012 10:32am

Why is a comparison always a single mom with two kids. When I was in high school & college I knew the min. wage was not designed to raise a family. I knew I had to educate myself to get paid a better wage so I could raise a family. Therefore, I did not have kids until I knew I could afford it. I was not entitled to anything, I had to earn it. As a small business owner raising the min wage to $10.00 would have no impact because I already pay more for full-time employment. However, it would stop me from hiring temporary and/or summer help. I am just tired of people using that the min. wage should be sufficient for a family to survive on. That is not the purpose of the min. wage. Take control of your life and stop expecting something for nothing.

BozoAdult

September 21, 2012 1:29am

A Romney Fascist?

suncoast2k

September 24, 2012 9:53am

Looks like he "built it himself"!!!

luxartisan

September 19, 2012 3:09pm

You're correct insofar that minimum wage has no definition other than the legal one -- i.e. the lowest possible hourly wage an employer must pay to an employee. Of course, business owners want to pay as little as possible for as much work as possible. Quite frankly, they'd probably love to pay $0 to their employees if they could get away with it; but since slavery was abolished in 1863, they must pay something (like it or not). I don't think $10.00 an hour is too much to ask unless, as a business owner, you resent having to pay a decent wage to someone who keeps your business afloat by doing the jobs you can't, won't or don't think you should do yourself.

Riconui

September 19, 2012 10:58am

I'm not sure how it is you would equate a suggestion to raise the minimum wage as asking for "something for nothing". Nobody did that. The idea to use a single mom with two kids as a case is because that actually happens. I've seen it up close and personal. You are correct of course that the minimum wage was not regarded as a sufficient wage to raise a family on and that is precisely why it should be raised, because if you are a woman with a child or two, and you are not, you should not be compelled to work for wages that low. Fine! So let's start paying women what they are worth across the board, or would that also be regarded as creating a hardship for employers? Even going to school is no guarantee as our current crop of grads is hardly blowing into six digits jobs but are saddled with mountains of debt.
And just this thought. I believed I had control of my life until I found that my equity was worth less than my mortgage. It's a bit hard to make the case of moral hazard when your are playing a rigged game.

scmike1965

September 19, 2012 1:06pm

Collect child support from the kids' fathers. Why should rich people pay for her kids??

BozoAdult

September 21, 2012 1:28am

Multimillionaires should be paying more than 13 fucking %, I'll tell you that.

pitch1934

September 19, 2012 10:55am

Not everyone has the wherewithall to go to college. Likewise not veryone wants to be a captain of industry. Many of us are happy working for a living. All that is asked is that those who do work for aliving get paid decently. When money is in circulation, money is spent on consumer goods, some of it for entertainment, some of it for other pleasures. when money is tight, it is spent with a cautious eye. If we want the economy to get healthy, we have to contribute. It's pure Vulcan logic.

woetopoe

September 19, 2012 9:08am

Corporations such as WalMart and McDonald's, just to name a couple, spend many millions of dollars lobbying D.C. legislators not to raise the minimum wage. Their efforts (bribes) have been very effective. This money could obviously been spent on raising salaries but then this might have started a movement that would have ultimately affected the outrageous and obscene riches being gathered at the top. The bottom line in a nation that allegedly places such a high emphasis on the values inherent in work is that if you work and are committed to that ethic you should be paid a "living wage" for doing so. If you're a small business (a real one not one with 250 workers) and this presents an actual hardship, then you should be government subsidized.
Six members of the WalMart family have a combined income greater than 30 countries in the world. They are now the nations leading employer in terms of employees under their roofs. Paying their workers a decent wage would still leave them enough to maintain their otherworldly opulent lifestyles. It might reduce their income to the point of only surpassing 25 countries. That, of course, is simply too great a sacrifice. As Mr.Hightower alludes to, the foundation of America is being uprooted. When the process becomes complete the revolution will begin in earnest.

suncoast2k

September 24, 2012 10:22am

Very well said, WOETOPOE! My sister-in-law went to interview for an opening at a new WalMart in Tampa and the starting wage was not even $10/hr., just pitiful for a company as profitable as you have described.

I also recently saw a documentary about the viciousness of WalMart if there is any union talk by employees. They send in special managers to root out the "traitors".

What pathetic behavior by a company that is constantly waving the Stars and Stripes. The Nazi flag is the one they should be waving in the name of fascism.