Raising the Minimum Wage

Despite the propaganda from free marketeers, raising the minimum wage benefits the economy. It also keeps us from being a third world nation. It is certainly no substitute for the higher paying manufacturing jobs that have been outsourced by companies wanting to take advantage of cheap labor abroad. The problem has been that businesses have tried to get around the raising of the minimum wage by hiring illegal aliens or outsourcing. Therefore the solution to the problem is a government that isn't beholden to the lobbyists of business interests. And that ain't happening with the current two-party system. We must begin the struggle to defeat the anti-labor argument by making the case that a well paid work force fuels the consumption that makes an economy grow. And that's good for business:

When low-wage workers have more money in their pockets, they have little choice but to spend it immediately on basic necessities like groceries, clothing and school supplies. And as demand for goods and services grows, businesses expand and hire; the increased spending resulting from the minimum-wage bumps in eight states on Jan. 1 will lead to an additional $366 million in economic output and create the equivalent of more than 3,000 jobs, according to an analysis by the Economic Policy Institute. That's a shot in the arm our economy needs.

The minimum-wage increase is especially important when so many better-paying jobs in sectors like construction, manufacturing and finance have disappeared, and many families are left supporting themselves with lower-paid service-sector jobs. An analysis by the National Employment Law Project finds that while the majority of jobs lost during and after the recession were in mid-wage occupations, roughly three-quarters of the jobs added since job growth resumed are in low-wage occupations.

And things aren't going to improve any time soon: The Bureau of Labor Statistics estimated that seven of the 10 occupations with the most job growth between 2008 and 2018 will be low-paying positions. While we know our economy will have an increasing number of positions in home health care, food preparation and customer service, these jobs don't have to pay poverty wages. At one time, the manufacturing jobs that we now yearn for were dangerous, low-wage and undesirable. But we turned them into good jobs, with safer work places, higher pay, and a voice for workers.

Eight states will take a step in the right direction on Jan. 1 when they raise minimum wage rates to keep pace with inflation. But while more than 1.4 million workers will see their wages increase Jan. 1, millions more must depend on the stagnant federal minimum wage of just $7.25, or $15,000 a year for full-time work. The American people know this isn't right: A national poll conducted in November found that more than two-thirds of Americans support raising the minimum wage to $10 an hour. It's a deeply popular idea that can help boost the economy while not adding to state or federal budget deficits.

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