Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Economy
In reply to the discussion: STOCK MARKET WATCH -- Friday, 18 April 2014 [View all]Demeter
(85,373 posts)3. Robert Reich: 7 Reasons Why the Minimum Wage Should Be Raised to $15 an Hour
http://www.alternet.org/economy/robert-reich-7-reasons-why-minimum-wage-should-be-raised-15-hour?akid=11700.227380.pXLo2t&rd=1&src=newsletter979809&t=8
Momentum is building to raise the minimum wage. Several states have already taken action Connecticut has boosted it to $10.10 by 2017, the Maryland legislature just approved a similar measure, Minnesota lawmakers just reached a deal to hike it to $9.50. A few cities have been more ambitious Washington, D.C. and its surrounding counties raised it to $11.50, Seattle is considering $15.00. Senate Democrats will soon introduce legislation raising it nationally to $10.10, from the current $7.25 an hour.
All this is fine as far as it goes. But we need to be more ambitious. We should be raising the federal minimum to $15 an hour.
Here are seven reasons why:
1. Had the minimum wage of 1968 simply stayed even with inflation, it would be more than $10 an hour today. But the typical worker is also about twice as productive as then. Some of those productivity gains should go to workers at the bottom.
2. $10.10 isnt enough to lift all workers and their families out of poverty. Most low-wage workers arent young teenagers; theyre major breadwinners for their families, and many are women. And they and their families need a higher minimum.
3. For this reason, a $10.10 minimum would also still require the rest of us to pay Medicaid, food-stamps, and other programs necessary to get poor families out of poverty thereby indirectly subsidizing employers who refuse to pay more. Bloomberg View describes McDonalds and Walmart as Americas biggest welfare queens because their employees receive so much public assistance. (Some, like McDonalds, even advise their employees to use public programs because their pay is so low.)
4. A $15/hour minimum wont result in major job losses because it would put money in the pockets of millions of low-wage workers who will spend it thereby giving working families and the overall economy a boost, and creating jobs. (When I was Labor Secretary in 1996 and we raised the minimum wage, business predicted millions of job losses; in fact, we had more job gains over the next four years than in any comparable period in American history.)
5. A $15/hour minimum is unlikely to result in higher prices because most businesses directly affected by it are in intense competition for consumers, and will take the raise out of profits rather than raise their prices. But because the higher minimum will also attract more workers into the job market, employers will have more choice of whom to hire, and thereby have more reliable employees resulting in lower turnover costs and higher productivity.
6. Since Republicans will push Democrats to go even lower than $10.10, its doubly important to be clear about whats right in the first place. Democrats should be going for a higher minimum rather than listening to Republican demands for a smaller one.
7. At a time in our history when 95 percent of all economic gains are going to the top 1 percent, raising the minimum wage to $15 an hour isnt just smart economics and good politics. Its also the morally right thing to do.
Call your senators and members of congress today to tell them $15 an hour is the least American workers deserve. You can reach them at 202-224-3121.
Robert B. Reich has served in three national administrations, most recently as secretary of labor under President Bill Clinton. He also served on President Obama's transition advisory board. His latest book is "Aftershock: The Next Economy and America's Future." His homepage is www.robertreich.org.
Momentum is building to raise the minimum wage. Several states have already taken action Connecticut has boosted it to $10.10 by 2017, the Maryland legislature just approved a similar measure, Minnesota lawmakers just reached a deal to hike it to $9.50. A few cities have been more ambitious Washington, D.C. and its surrounding counties raised it to $11.50, Seattle is considering $15.00. Senate Democrats will soon introduce legislation raising it nationally to $10.10, from the current $7.25 an hour.
All this is fine as far as it goes. But we need to be more ambitious. We should be raising the federal minimum to $15 an hour.
Here are seven reasons why:
1. Had the minimum wage of 1968 simply stayed even with inflation, it would be more than $10 an hour today. But the typical worker is also about twice as productive as then. Some of those productivity gains should go to workers at the bottom.
2. $10.10 isnt enough to lift all workers and their families out of poverty. Most low-wage workers arent young teenagers; theyre major breadwinners for their families, and many are women. And they and their families need a higher minimum.
3. For this reason, a $10.10 minimum would also still require the rest of us to pay Medicaid, food-stamps, and other programs necessary to get poor families out of poverty thereby indirectly subsidizing employers who refuse to pay more. Bloomberg View describes McDonalds and Walmart as Americas biggest welfare queens because their employees receive so much public assistance. (Some, like McDonalds, even advise their employees to use public programs because their pay is so low.)
4. A $15/hour minimum wont result in major job losses because it would put money in the pockets of millions of low-wage workers who will spend it thereby giving working families and the overall economy a boost, and creating jobs. (When I was Labor Secretary in 1996 and we raised the minimum wage, business predicted millions of job losses; in fact, we had more job gains over the next four years than in any comparable period in American history.)
5. A $15/hour minimum is unlikely to result in higher prices because most businesses directly affected by it are in intense competition for consumers, and will take the raise out of profits rather than raise their prices. But because the higher minimum will also attract more workers into the job market, employers will have more choice of whom to hire, and thereby have more reliable employees resulting in lower turnover costs and higher productivity.
6. Since Republicans will push Democrats to go even lower than $10.10, its doubly important to be clear about whats right in the first place. Democrats should be going for a higher minimum rather than listening to Republican demands for a smaller one.
7. At a time in our history when 95 percent of all economic gains are going to the top 1 percent, raising the minimum wage to $15 an hour isnt just smart economics and good politics. Its also the morally right thing to do.
Call your senators and members of congress today to tell them $15 an hour is the least American workers deserve. You can reach them at 202-224-3121.
Robert B. Reich has served in three national administrations, most recently as secretary of labor under President Bill Clinton. He also served on President Obama's transition advisory board. His latest book is "Aftershock: The Next Economy and America's Future." His homepage is www.robertreich.org.
Edit history
Please sign in to view edit histories.
41 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
RecommendedHighlight replies with 5 or more recommendations
Snowden scoffs Putin: I questioned the Russian president live on TV to get his answer on the record,
Demeter
Apr 2014
#36
The Hedge Fund Managers Tax Break: Because Wall Streeters Want Your Money DEAN BAKER
Demeter
Apr 2014
#13
If you want a Wealth Effect, you have to be increasing the NUMBER of the Wealthy
Demeter
Apr 2014
#37