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[ # ] UPDATED: Senate Rejects Bid to Raise Minimum Wage
June 22nd, 2006 under Politics, New Orleans

kennedyI just got off the phone with Edward Kennedy’s office in Washington.

The AP reported that the proposal brought forth by Kennedy to raise the minimum wage to $7.25 and hour was rejected. The U.S. Senate site mistakenly reported that it passed.

I don’t understand it. Mary Landrieu must have recieved the email I sent her two days ago that encouraged her to support the measure while David Vitter ignored my email. Hmmm.

Oh yeah I forgot that Vitter is more worried about gay folks getting married than about poor people. Sorry Dave!

Guess I’ll be sending David another email this afternoon. What an idiot!

UPDATE:

From Barbara Ehrenreich’s Blog:

From a Congress that has consistently cut taxes for the wealthy, themselves included, while cutting programs that serve the poor and the middle class, the minimum wage vote is not entirely surprising. What merits special notice in this instance is the unctuous rhetoric that arose from the sties as Republicans rushed to explain that by holding down the minimum wage they were actually helping the poor. If we don’t keep wages down, they said, grease dripping from the corners of their mouths, the Predators might find their prey less tasty, and unemployment will rise!

Never mind that there is no empirical evidence for this prediction. Employment didn’t plunge the last time the minimum wage was increased, in 1997, nor has this happened in any of the states – Massachusetts for example – that have raised their own minimum wages in the last few years. I grant you that there might be trouble if the minimum wage were to rise at the same rate as CEO pay. As the Institute for Policy Studies reported in 2005, “If the minimum wage had risen as fast as CEO pay since 1990, the lowest paid workers in the US would be earning $23.03 an hour today, not $5.15 an hour.”

Nor is it true, incidentally, that the minimum wage is paid mostly to teenagers working to support their Abercrombie and Fitch habits. According to economist Heather Boushey at the Center for Budget and Policy Priorities, fewer than one in five minimum wage workers is under the age of 20. In my experience, many of those youthful minimum wage workers are in fact making important contributions, however tiny, to their families’ inadequate incomes.


Read the Comments

[ # 2233 ] Comment from D.R. Randle [June 22, 2006, 10:52 am]

This is one of those issues where I am just not convinced that a wage increase would actually help poor people. For one, it would cause inflation to skyrocket, likely bringing all goods and services to a rate in line with the wage increase and thus not be helpful to those for which the increase is designed. Additionally, whenever the minimum wage is increased, many business who already pay higher wages up their wages as well, thus continuing to widen the gap between the rich, middle class, and poor. The only place where I could see a wage increase really helping is at the gas pump, but an increase in inflation might cause gas prices to rise as well.

Additionally, such minimum wage jobs rarely exist in the first place. Currently fast food restaurants, which most often takes advantage of lower wages, are set at anywhere from $2-$3 more than the present minimum wage. And a jump of such magnitude that Kennedy proposed (basically 50% higher) might throw the economy into a recession. I would like to hear Ben Bernanke’s position on this in order to really support such a large increase.

[ # 2234 ] Comment from D.R. Randle [June 22, 2006, 10:58 am]

One more point — my job for instance would probably be effected greatly by such an increase. As one who delivers pizzas and not specifically within the larger “service industry”, we would get a wage increase. But the result would be an increase in the cost of pizzas and possibly a decrease in sales to our more financially secure customers. If those individuals did not receive a raise, then it might affect me by bringing in more customers who tip very little and less customers who tip well, thus not giving me any real increase in salary, yet vulnerable to any hike in inflation. And before you point out that I am firmly planted in the middle class, such is not the case with many of my co-workers and others in the pizza delivery industry.

[ # 2253 ] Comment from Joe Kennedy [June 23, 2006, 2:07 am]

Actually, I’m totally against a hike in the minimum wage. The goal isn’t to stay there, Howie. Thus it’s a good base. The goal is to rise through the ranks. Plus, when the rate is hiked, the people who need it most are the first to be let go. Single moms, high school drop outs, college students, minorities… all the first to go. The unskilled workers never outweigh the skilled workers.

But then, I changed my major FROM economics because I knew I wasn’t any good at it.

[ # 2254 ] Comment from Joe Kennedy [June 23, 2006, 2:08 am]

I guess what I’m saying, Howie, is that if the min. wage is hiked, then D.R. is out of a job.

[ # 2258 ] Comment from D.R. Randle [June 23, 2006, 6:38 am]

Well, probably not Joe, but thanks for thinking of me. I am sure people will still eat pizza, just maybe not as much.

[ # 2285 ] Comment from Joe Kennedy [June 24, 2006, 12:10 am]

A pizza delivery boy with a masters degree. Probably not. But someone’ll be firing someone.

[ # 2291 ] Comment from D.R. Randle [June 24, 2006, 2:30 am]

Thanks for reminding me Joe.

[ # 2295 ] Comment from Joe Kennedy [June 24, 2006, 4:23 am]

Aww, love ya D.R.

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