Even
Oprah is on the side of an increase in the minimum wage. That woman can move mountains, so she recently devoted an entire show to the mimimum wage issue.
In California, the minimum wage($6.75/hr.)issue is back after the Governor vetoed an earlier Democratic bill to raise the state minimum wage $1 to $7.75/hr. Remember that.
Democrats have a bill to raise the minimum wage to .50 cents now, .50 a little later, and make future increases automatic by tieing the wage to inflation. So, all that’s on the table is the $1 increase Schwarzengeer vetoed last fall, plus the indexing.
It is the indexing that has Schwarzenegger threatening to veto the bill. A lot of hand-wring is going on in Republican circles, including over on the Chico Enterprise-Record
editorial page. They’re accusing Democrats of playing politics by adding indexing to the legislative stew.
I think the Democrats were correct to add indexing. I don’t see why they should give Schwarzenegger a pass when he had a chance to approve the same wage hike WITHOUT indexing. Democrats are right to up the ante.
Schwarzenegger didn’t care about minimum wage earners when he vetoed the increase. He didn't need to: His $50-million special election was on the horizon; his roadmap to reelection had been drawn. But the special election boondoggle blew up in his face, so he needs all the help he can get. Now, he’s worried about minimum wage workers.
Democrats might be playing politics. Republicans are playing cynical politics.
California’s minimum wage is an embarrassing travesty.
California’s minimum wage is
two to three times below the hourly wage required to live a modest lifestyle. And, when the mythmakers say, “that’s all right, only part-time high school students are being paid minimum wage,” don’t believe it.
In fact, California’s low-wage workers are predominately adults working full time. In 2003, more than six out of ten California workers earning within one dollar per hour of the state’s minimum wage were age 25 and older, while only one out of six were teens.
My source for these numbers are the California Budget Project. You can read their reports
here and
here.
CBP found California’s median income to be $15.00/hr. To maintain a modest, no-frills lifestyle, a family with two parents and two children, where one parent works, had better be earning $24.60/hr. For a single parent with two children, the gap between the median and required wage($25.96/hr) is even greater.
In the Sacramento Valley region, single parent families and two parent families (with one working parent) had better be earning around $20.00/hr. just to maintain a basic family budget.
These hourly pay scenarios are for the basic expenses like food, housing and transportation, and allow little to no room for “extras” such as college savings, vacations, or emergencies.
So, when we talk about a minimum wage, remember that is doesn’t even come close to a living wage. There are folks that work two, three minimum wage jobs – and have no health insurance. If employers don’t pay a decent, living wage, then people are more likely to end up on some form of government assistance. Or in emergency rooms. Wal-Mart doesn’t provide health benefits to a lot of their employees Their corporate policy is to deny health benefits, thus shifting their workers into state medical insurance programs for the indigent.
Republicans often warn that raising the minimum wage will force small businesses to close their doors; in effect, raising the minimum wage is a job killer. But when a Wal-Mart comes in and the locally-owned supermarket goes out of business; or the hardware store; or the vacuum cleaner shop; or the paint store; the Republicans never say a peep about the loss of
those jobs.
There’s a real disconnect there.
In fact, paying a living wage is good for local communities. Workers will have more purchasing power and circulate more dollars in the local economy, benefiting all small business. Businesses then can re-invest and expand. This is a good thing for the community.
Sometimes we hear from conservatives that employers deserve tax breaks and other adulation because they provide jobs. I think the employer’s reward for providing a job is the profit he/she realizes from the difference between what an employee is compenstated and the actual value of the work performed. Consider also, that business could not operate if not for the infrastructure – roads, bridges, airports, the post office – paid for by employees with their tax dollars. Shouldn’t business recognize this contribution to society by paying taxpaying employees a decent, living wage?
Many businesses large and small do, in fact, take care of their employees in a decent and honorable way, and they should be commended. I do. I try to shop at their businesses.
But some don’t, and threaten to go out of business, if the minimum wage is increased. (We’re not even talking living wage here).
Perhaps the bottom line should be this: if a business can’t do right by the workers that makes their business possible, maybe they shouldn’t be in business in the first place. Maybe we shouldn’t mourn their passing.
Just maybe employers who understand the value of good workers, honorably paid and well treated, will move in to fill the void.
And our communities will be better for it.
--Drzal