The 7 most dangerous myths about a $15 minimum wage

[uawchild]

"Conservatives insist it will cost the country jobs and raise unemployment. They're wrong on both accounts"
by HANNA BROOKS OLSEN, THE DAILY DOT, via Salon

"What was once a fringe movement led largely by far left liberals has become a major media story and trending topic on Twitter: Workers, politicians, and even business owners are fighting for a higher minimum wage. In some areas, they’re even winning. The White House has recommended a federal minimum wage of $10.10, but cities like Los Angeles, San Francisco, and Seattle have raised the bar, passing legalization to raise the minimum wage to $15. (In most places, the transition will take place over the next five to seven years).

And despite these successes, myths about what increased wages mean for America’s economy and workers continue to prevail, making the rounds in Facebook memes and even real news reports. There’s so much misinformation on the subject that the Department of Labor even has a “mythbusting” page.

But these myths are just that: They’re myths. And there’s plenty of data to debunk them.

1) Myth: The minimum wage was never supposed to be a living wage

This is probably one of the most dangerous—and easy to debunk—myths about the minimum wage, which was championed by Franklin D. Roosevelt beginning in 1933. During an address FDR gave about one of his many economic salvation packages, he explained that “no business which depends for existence on paying less than living wages to its workers has any right to continue in this country.”

At the time, Roosevelt’s Fair Labor Standards Act of 1938—passed as part of New Deal legislation—set minimum wage at 25 cents. Roosevelt intended this rate to be “more than a bare subsistence level.” The minimum wage was created expressly to ensure that people of all skill-levels, if they worked, could “earn a decent living” off those wages—thus, a living wage.

2) Myth: An increase in the minimum wage won’t help anyone if all other costs go up, too

One assumption about increasing the minimum wage is that it will force to the cost of living to increase at the same rate, and in doing so, we’d really just be speeding up inflation.

This isn’t really how economics works. A 2013 study by the Chicago Fed found that increasing the minimum wage even just to $9 would increase consumer spending by $28 billion. When spending—i.e. demand—increases, manufacturers and other purveyors of goods and services can actually charge less or at least avoid increasing their prices, because they’re increasing overall revenue.

While increasing minimum wage, thus, benefits the economy, there are hidden costs of low-wage work which impact everyone. Working full-time at the current federal minimum wage of $7.25 means employees make just about $165 per month above the federal poverty level. If they have even one child, they are well below it, which means they are dependent on social services to the tune of about$152.8 billion in taxpayer money per year.
..."



http://www.salon.com/2015/08/04/the_7_most_dangerous_myths_about_the_fight_for_a_15_minimum_wage_partner/

[pipoman]

1. None of those are the actual problem...the actual problem with this is

Thatthere are vast differences in cost of living from one place in the US to the next. $15 may be right for LA but in Enid OK it may be more than the economy can bear, and San Francisco needs to be $28.

Bottom line is that federal minimum wage is a joke if it isn't tied to regional cost of living. It will always be tied to the lowest economic tier in the country, not the highest where it is actually most important....n9tice where the fast food movement began...it wasn't Kansas..

[uawchild]

2. Living Wage Calculator

People have taken your concern into consideration, here are just 2 links discussing your point. Thanks for responding.


"In many American communities, families working in low-wage jobs make insufficient income to live locally given the local cost of living. Recently, in a number of high-cost communities, community organizers and citizens have successfully argued that the prevailing wage offered by the public sector and key businesses should reflect a wage rate required to meet minimum standards of living.

Therefore we have developed a living wage calculator to estimate the cost of living in your community or region. The calculator lists typical expenses, the living wage and typical wages for the selected location."

http://livingwage.mit.edu

VERY interesting site. The living wage depends on the number of adults working (1 or 2) and the number of children, but even in Mississippi for a single parent with just one child the living wage seems to be OVER $15.

---------------

"The States Where $15 Isn’t A Living Wage

Thousands of workers all over the country have walked out, embarked on hunger strikes, and staged sit-ins in restaurants over the past year, all in the pursuit of a $15 minimum wage. The Fight for $15 campaign has garnered headlines and built momentum around the country for raising salaries among low-wage workers. The effort has organized workers in small towns in Arkansas and larger cities such as New York and San Francisco alike. As a result, progressive strongholds have implemented higher minimum wages. But federal minimum wage still remains at an impossibly low $7.25 per hour.

Despite these efforts, a new report from The Alliance For A Just Society argues that $15 may still fall short of a living wage. The report defines a living wage as “…one that allows families to meet their basic needs, without public assistance, and that provides them some ability to deal with emergencies and plan ahead. It is not a poverty or survival wage.” "

http://thinkprogress.org/economy/2015/10/16/3712299/living-wage-graphics/

[pipoman]

3. This is why I think the $15 minimum wage fight is probably unnecessary

When unemployment rate is 5%....

[underpants]

4. Marking for later read

Thanks