10 reasons we need more than a $10.10 minimum wage

The figure keeps up with inflation, but not entirely, and we're still lagging behind other industrialized countries

Topics: AlterNet, Minimum wage, Inflation, Barack Obama, University of Virginia, New York Times, ,

10 reasons we need more than a $10.10 minimum wage (Credit: iStockphoto/Alexey Stiop)

On Friday, President Obama signed an executive order raising the minimum wage for some federally contracted workers to $10.10. This move illustrates the fact that we need a higher minimum wage for all workers. It also promotes the bill by Sen. Tom Harkin and Rep. George Miller which would raise the minimum wage to $10.10 by 2015.

Make no mistake: The president’s gesture was a good one, and the Harkin/Miller bill is very important. But, as is so often the case nowadays, strategists on the left run the risk of prematurely accepting preconceptions about what is “politically possible.” If economic debate becomes strictly a defensive game on the left, the “Overton window” of acceptable debate will keep shifting toward the right.

The minimum wage is an excellent case in point. There are strong arguments for raising it even more — perhaps considerably more — than is currently being discussed, and the independent left should be making them.

Here are 10 reasons why “$10.10″ should be a floor, not a ceiling, in discussions of the minimum wage.

1. It keeps up with inflation — but not entirely.

Compared to the 1968 minimum wage, $10.10 is enough to keep up with inflation — more or less. But it doesn’t make up for the many years in which minimum wage workers fell behind. Those years often led to increased debt, lost educational opportunities, and other forms of deprivation.

2. We’re lagging behind other industrialized countries.

The U.S. minimum wage is well behind that of most other industrialized countries. Even at $10.10, we would be laggards compared with most of our peers. (But not all of them. To use the vernacular: In your face, Slovak Republic!)

Our current minimum wage is roughly 40 percent the median national income. We would have to raise it to roughly $10.88, effective immediately, to equal France’s. And don’t we want to do even better than that? (Source: International Labor Organization)



Where’s that American exceptionalism when we need it?

3. If the minimum wage had kept pace with productivity, it would be $21.72 today.

The Harkin/Miller bill would peg the minimum wage to inflation in future years. But there’s a very strong argument for tying it to productivity instead. That’s what the minimum wage did in the years between 1947 and 1968, as economist Dean Baker regularly points out. (Source: Dean Baker, CEPR)

If the minimum wage were based on productivity increases from 1968 to today, it would be more than $21 per hour. (Source: John Schmitt, CEPR)

Corporations would have us believe that even a modest minimum wage which is tied to inflation would stifle growth and lead to increased joblessness. And yet, during the decades that the minimum wage rose even higher, with productivity, we experienced an average of 4 percent annual GDP growth and 4 percent unemployment. (Source: Baker and Kimball, CEPR)

In fact, the official unemployment rate in 1968 was less than half of the rate today, and the actual employment figures were even better.

Productivity measures the wealth produced by an economy. One-percenters want us to believe otherwise, but a system in which most new wealth goes to them is the exception, not the rule. Why are we deliberately preserving this harmful situation.

4. If the minimum wage had kept pace with the incomes of the top 1 percent, it would be more than $28 per hour today.

Minimum-wage workers to America’s wealthiest citizens: We’ll take it! (Source: Economic Policy Institute)

5. A single parent will still need federal assistance.

With a minimum wage of $10.10, a parent raising a single child will no longer qualify for food assistance. But a single parent with two children will still need the help, since a full-time minimum wage won’t lift them far enough above the poverty threshold.

A full-time worker earning $10.10 per hour makes $21,008 per year. The cutoff level for educational aid through the TRIO program is $23,595 for a household of two. The cutoff level for food assistance is $25,392 (annualized) for a three-person household. (Sources: Office of Postsecondary EducationUSDA/SNAP)

6. Corporate profits are at or near record-high levels.

They’re so high, in fact, that management is reportedly getting nervous about it. A $10.10 minimum wage might not do enough to re-balance wages and profits, and thus to put their hearts at rest.

7. It’s what the public wants.

Two-thirds of voters want to see the minimum wage increased to at least $10.10, according to recent polling. Forty-three percent of them would like to see it raised even higher – and that’s without anybody making the case for that higher number.

Why not make that argument to the American people? We would be more likely to wind up with a minimum wage they’ll like even better.

8. A higher minimum wage will do even more to spur economic growth and widespread prosperity.

They’ll probably like their economy better, too. So much of our national income is flowing to the wealthiest among us that they literally don’t know what to do with it. Spending and investment have dropped among high earners, and more of their income is sitting idly in bank accounts.

Minimum-wage workers spend what they earn. That leads to increased economic growth — the kind which benefits all wage-earning employees.

9. All sorts of Republican Presidents have signed bills increasing the minimum wage.

Eisenhower did. (Source: Miller Center, University of Virginia)

So did Richard Nixon, and George H. W. Bush, and George W. Bush. (Source: Bill Scher, The Week)

10. Newt Gingrich’s Congress raised the minimum wage, too.

In fact, Gingrich’s Republican Congress raised it by more than 21 percent back in 1996. So why can’t John Boehner’s Congress be pressed to do the same thing?

One difference: Democrats hammered the GOP relentlessly with procedural maneuvers, not unlike this reported move from Minority Leader Nancy Pelosi. Another difference: The AFL-CIO ran ads back in 1996 targeting Republicans for resisting a popular measure.

(Source: New York Times via Scher)

Why did these Republicans finally do the right thing? In many cases it was because the “Overton window” was facing in the right direction, thanks to some hard work and effective communication.

There’s a lesson in that: Make the case for what is right — and do it fearlessly, because it is right. When the time for expediency arrives, you may find that the limits of the possible have changed.

Featured Slide Shows

  • Share on Twitter
  • Share on Facebook
  • 1 of 7
  • Close
  • Fullscreen
  • Thumbnails
    AP/Jae C. Hong

    Your summer in extreme weather

    California drought

    Since May, California has faced a historic drought, resulting in the loss of 63 trillion gallons of water. 95.4 percent of the state is now experiencing "severe" drought conditions, which is only a marginal improvement from 97.5 percent last week.

    A recent study published in the journal Science found that the Earth has actually risen about 0.16 inches in the past 18 months because of the extreme loss of groundwater. The drought is particularly devastating for California's enormous agriculture industry and will cost the state $2.2 billion this year, cutting over 17,000 jobs in the process.

       

    Meteorologists blame the drought on a large zone (almost 4 miles high and 2,000 miles long) of high pressure in the atmosphere off the West Coast which blocks Pacific winter storms from reaching land. High pressure zones come and go, but this one has been stationary since December 2012.

    Darin Epperly

    Your summer in extreme weather

    Great Plains tornadoes

    From June 16-18 this year, the Midwest was slammed by a series of four tornadoes, all ranking as category EF4--meaning the winds reached up to 200 miles per hour. An unlucky town called Pilger in Nebraska was hit especially hard, suffering through twin tornadoes, an extreme event that may only occur every few decades. The two that swept through the town killed two people, injured 16 and demolished as many as 50 homes.   

    "It was terribly wide," local resident Marianne Pesotta said to CNN affiliate KETV-TV. "I drove east [to escape]. I could see how bad it was. I had to get out of there."   

    But atmospheric scientist Jeff Weber cautions against connecting these events with climate change. "This is not a climate signal," he said in an interview with NBC News. "This is a meteorological signal."

    AP/Detroit News, David Coates

    Your summer in extreme weather

    Michigan flooding

    On Aug. 11, Detroit's wettest day in 89 years -- with rainfall at 4.57 inches -- resulted in the flooding of at least five major freeways, leading to three deaths, more than 1,000 cars being abandoned on the road and thousands of ruined basements. Gov. Rick Snyder declared it a disaster. It took officials two full days to clear the roads. Weeks later, FEMA is finally set to begin assessing damage.   

    Heavy rainfall events are becoming more and more common, and some scientists have attributed the trend to climate change, since the atmosphere can hold more moisture at higher temperatures. Mashable's Andrew Freedman wrote on the increasing incidence of this type of weather: "This means that storms, from localized thunderstorms to massive hurricanes, have more energy to work with, and are able to wring out greater amounts of rain or snow in heavy bursts. In general, more precipitation is now coming in shorter, heavier bursts compared to a few decades ago, and this is putting strain on urban infrastructure such as sewer systems that are unable to handle such sudden influxes of water."

    AP/The Fresno Bee, Eric Paul Zamora

    Your summer in extreme weather

    Yosemite wildfires

    An extreme wildfire burning near Yosemite National Park forced authorities to evacuate 13,000 nearby residents, while the Madera County sheriff declared a local emergency. The summer has been marked by several wildfires due to California's extreme drought, which causes vegetation to become perfect kindling.   

    Surprisingly, however, firefighters have done an admirable job containing the blazes. According to the L.A. Times, firefighters with the state's Department of Forestry and Fire Protection have fought over 4,000 fires so far in 2014 -- an increase of over 500 fires from the same time in 2013.

    Reuters/Eugene Tanner

    Your summer in extreme weather

    Hawaii hurricanes

    Hurricane Iselle was set to be the first hurricane to make landfall in Hawaii in 22 years. It was downgraded to a tropical storm and didn't end up being nearly as disastrous as it could have been, but it still managed to essentially shut down the entire state for a day, as businesses and residents hunkered down in preparation, with many boarding up their windows to guard against strong gusts. The storm resulted in downed trees, 21,000 people out of power and a number of damaged homes.

    Debbie Arita, a local from the Big Island described her experience: "We could hear the wind howling through the doors. The light poles in the parking lot were bobbing up and down with all the wind and rain."

    Reuters/NASA

    Your summer in extreme weather

    Florida red tide

    A major red tide bloom can reach more than 100 miles along the coast and around 30 miles offshore. Although you can't really see it in the above photo, the effects are devastating for wildlife. This summer, Florida was hit by an enormous, lingering red tide, also known as a harmful algae bloom (HAB), which occurs when algae grow out of control. HABs are toxic to fish, crabs, octopuses and other sea creatures, and this one resulted in the death of thousands of fish. When the HAB gets close enough to shore, it can also have an effect on air quality, making it harder for people to breathe.   

    The HAB is currently closest to land near Pinellas County in the Gulf of Mexico, where it is 5-10 miles offshore.

  • Recent Slide Shows

Comments

Loading Comments...