PA Tour: Winning Hearts and Minds with Minimum Wage

I've come to the conclusion that the minimum wage debate nicely captures the absurdity of American life under Republican rule and what's a stake in this election. Consider this. The annual income at which the federal government says that a family of two is living below poverty is $13,200 -- but a single parent working 40 hours a week at the federal minimum wage of $5.15 makes less than $11,000 a year. If I didn't know us better, I'd swear that all we're doing as a nation is mocking those efforts.

Rep. Pelosi has said that raising the federal minimum wage to $7.25 an hour would be a top priority in the first 100 hours of a Democratic Congress. By way of contrast, even Rick Santorum admits that the current House leadership doesn't care a lick about even discussing wages -- even though it's a priority of 68 percent of Americans.

This question of wages came up again and again at a noon-time GOTV rally today in Philadelphia's Love Park. On stage was a great crop of Democrats, with very special guest John Edwards, Mayor Street, Rep. Schwartz, Rep. Fattah, Rep. Brady, Lois Murphy, Patrick Murphy, Bob Casey, and Governor Rendell.

Under Rendell's leadership, Pennsylvania has raised the wage floor up two bucks above the federal level. More than 420,000 Pennsylvanians will take home more in each pay check now. But lemme take a minute to make a plug for organized labor. Part of the team that brought PA a living wage was Working America (WA), the AFL-CIO affiliate that extends union membership to non-union workers. At a canvassers' briefing this afternoon, Bob Casey himself praised the part that WA played in the minimum wage campaign.

In the sort of very close races we're seeing here in PA, winners and losers will be decided by who turns out the vote. It's friend-to-friend and neighbor-to-neighbor combat at this point. Many of us will be doing our Democratic duty in the next four days by going door-to-door, sharing with our fellow voters what we think in our heads and know in our hearts is at stake on Tuesday.

I spent the early morning today with a handful of members of the Transportation Workers Union (TWU) leafleting the SEPTA bus depots in West Philly. A secret trick I picked up from them is that the campaign lit you hand out is like a handshake -- something to occupy your target for the first few awkward seconds. It's up to you to make the sale by pretending to be a normal human who can carry a conversation that makes sense to them. The TWU leaflet was nothing more than friends talking to friends, colleagues to colleagues -- what in political mythology Republicans are so good at. One canvasser interrupted a SEPTA employee who already committed to voting on Tuesday with "I've got kids 15 and 16 years old. They can't go in the booth but I take them with me..." "Just to be there," the worker interrupted right back."That's right," she said. "Umhum," he affirmed.

As I go door-to-door, I'm going to talk about the minimum wage, about restoring America as the land opportunity, about having a model for working your way up in this country that makes some degree of rational sense. But that's me, that's what I'm gonna use. Let's share -- what language will you use to make the sale to your friends and family in the next four days? When you knock on your neighbor's door, what are you going to tell her when she asks you point blank why she should vote? I'm looking for talking points we all can use.

Nancy's "Election 2006 Pennsylvania Tour" is brought to you by the AFL-CIO's Labor 2006 Program.



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Winning Hearts and Minds with Minimum Wage (3.00 / 1)

There is a proposition to increase the minimum wage on the Missouri ballot.

Our local paper (out state - that is, not Kansas City and not St. Louis), never a friend to the working person and always a friend to the status quo, endorsed a yes vote on the proposition.

...It is not right for those who make more than adequate salaries to dictate that millions are barely able to live. We recommend an increase in the minimum wage...

Maybe rural populism isn't dead...


543,895 votes
by Michael Bersin on Sat Nov 04, 2006 at 02:59:18 AM EST

Minimum Wage (1.75 / 4)

The concept of a minimum wage seems straightforward: If we believe the wages of some workers are too low, we should pass a law requiring those wages to be higher. What could be simpler? The problem is that increasing the minimum wage may make some people better off, but others will be harmed. Experience proves that the minimum wage hurts more people than it helps.

Age and education are the two most basic determinants of the wage a worker can command in the employment market. Young people generally have less experience and maturity and are usually not productive enough to demand a very high wage. According to the Bureau of Labor Statistics (BLS), the bulk of minimum-wage workers are under 25, with limited education.

In 2002, half of all workers earning the minimum wage were under age 25 and one-fourth were between the ages of 16 and 19. One-third of all minimum-wage workers had less than a high school diploma. Three-fifths of minimum-wage employees worked only part-time, and many were students or others living in homes with high family incomes.

At the same time, minimum-wage jobs are not insignificant. They are the first rung on the employment ladder for most workers. The experience workers gain in such simple skills as showing up on time, learning to follow instructions and how to interact with customers are critical to success in life.

That is why--absent government mandated hikes--salaries grow rapidly for newly hired minimum-wage workers who stick with their jobs. About 90% of workers hired at minimum wage earn more than the minimum after one year, according to the BLS.

Minimum-wage advocates imply that mostly large, successful firms employ low-wage workers. Therefore, the only effect of a higher minimum wage will be to reduce business profits. However, the Small Business Administration (SBA) recently examined the types of businesses employing low-wage workers. Not surprisingly, the bulk of them are small businesses, not big corporations. Among all minimum-wage workers, 54% work in businesses with fewer than 100 employees and two-thirds work in businesses with fewer than 500 employees.

Small businesses create 75% of new jobs annually, but they are also responsible for most job losses. That is why we must be especially careful when contemplating new financial burdens on small businesses. With so many of them so close to the edge to begin with, it often doesn't take much to push them over, destroying many jobs in the process.

Unemployment figures are also a telling statistic regarding minimum wage. From 1948 to 1955, unemployment of black and white teenage males was essentially the same, 11.3% and 11.6%, respectively. However, after the minimum wage was raised from 75 cents to $1 in 1956, unemployment rose significantly for both black and white teenage males, with blacks bearing more of the burden. By 1969, the unemployment rate was 22.7% for black teenage males and 14.6% for white teenage males.

Economists Donald Deere, Kevin Murphy and Finis Welch found that minimum wage increases totaling 27% in 1990 and 1991 reduced employment for all teenagers by 7.3% and for black teenagers by 10%. A study of the 1996 and 1997 increases by economists Richard Burkhauser, Kenneth Couch and David Wittenburg also found a 2% to 6% decline in employment for each 10% increase in the minimum wage.

In a study published by the Federal Reserve Bank of San Francisco, Couch translated these conclusions into raw numbers: At the low end, he estimated at least 90,000 teenage jobs were lost in 1996 and another 63,000 in 1997. At the high end, job losses may have equaled 268,000 in 1996 and 189,000 in 1997.

Couch estimates that a $1 rise in the minimum wage today would further reduce teenage employment by at least 145,000 and possibly as many as 436,000 jobs. According to the SBA, even among large firms the probability of a low-wage worker losing his job doubles after a minimum-wage hike.

Advocates of a minimum-wage hike ignore the evidence that it increases unemployment among the least productive workers: unskilled teenagers whose employment opportunities are limited. This is unfortunate, because low-wage jobs are the first rung on the economic ladder of success for workers entering the labor force. When we cut off the bottom rung by increasing the minimum wage, we keep youngsters from making the transition to work.


by mdf1960 on Sat Nov 04, 2006 at 04:00:36 AM EST

Re: Minimum Wage (3.00 / 1)

I work p/t in retail and while the big box company I work for does give steady annual raises, the turnover among workers, especially young workers, is astounding. Your argument that young workers get big raises quickly doesn't hold nearly as much water when you know younger workers rarely stay more than a year at a minimum wage/low wage job. To get a one dollar/yr raise, you have to work at least two years and probably more in other companies. A big reason for the turnover is the low wages and less than desireable working conditions. Businesses may intellectually understand that good wages attract good employees who in turn stay longer and help the company grow, but few can free themselves from breaking out of the conventional thinking that paying good wages undermines their profitability.

When you start approaching $10-12/hr, companies either start reducing the annual raise or look for ways to rid themselves of "high wage"/"high cost" workers by implementing policies like Wal-Mart just did telling employees they'll be fired if they are late for work more than 2 or 3 times.


by phillydem on Sat Nov 04, 2006 at 05:03:56 AM EST
[ Parent ]

Re: Minimum Wage (3.00 / 2)

All of those GOP excuses for not raising the minimum wage kind of fall away when you actually try to live on it.  Correct me if I'm wrong, mdf1960, but I suspect you have never tried to raise a family on $206 per week.

There's also an assumption that the minimum wage only affects teenagers.  Well, that's a crock.

In a report called, Characteristics of Minimum Wage Workers, the Bureau of Labor Statistics reports that ...  70.2% of [minimum wage earners] have a high school diploma. Only 26% of minimum wage earners are teenagers between the ages of 16 and 19 while 47% are age 25 or older.

You can look at the full report:
http://www.bls.gov/cps/minwage2005.htm

Here's the bottom line:  if what we demand that people be paid is less than what we decide is the poverty line, that is WRONG.  No one should be working full time and be in poverty.  It's really that simple.


John McCain, like George Bush, doesn't care about sick children
by Ms Bluezone on Sat Nov 04, 2006 at 08:57:20 AM EST
[ Parent ]

Wrong (3.00 / 1)

Age and education are not the greatest factors that determine wages. The single gretest factor is union membership.

BTW, I don't know who troll-rated you, but I don't consider your post trollish. I gave you a 2 because you made a reasoned arguement.


by antiHyde on Sat Nov 04, 2006 at 12:12:05 PM EST
[ Parent ]

Re: Minimum Wage (3.00 / 1)

What about the evidence that raising the minimum wage increases employment among 20 year olds?

Being able to get a part time job as a teenager is great, but it really sucks if you then can not get a full time job as a young adult.

And that is what the simplistic "market model" approach to the minimum wage ignores ... taking tgether the evidence that increasing the minimum wage does not change overall employment, plus the evidence that it reduces the quantity of crappy jobs available, implies that the effect (at least in the minimum wage ranges the US has experience ... up to $9 in real terms) is to replace crappy jobs with better ones.


*John Edwards* ... and the JE08 Supporters Blog
by BruceMcF on Sat Nov 04, 2006 at 01:42:03 PM EST
[ Parent ]

Why don't we just pay everybody the same? (none / 0)

"Free men are not equal, and equal men are not free"


by heyhey on Sat Nov 04, 2006 at 05:52:06 AM EST

Re: Why don't we just pay everybody the same? (none / 0)

Why not indeed? Then people would work at what interests them, not what pays best. But, I'm sure you will say, "what about those nasty jobs that no one wants?" And, I'll say, "Let's automate them out of existence, instead of office and telephone answering jobs. Or make working at those jobs, garbage collection and such, for X years, the price of admission to the USA, instead of artificial numerical limits." And, some of those jobs, like fire-fighting, concrete work, crop picking, are actually enjoyed by some people if the working conditions or hours are improved. Some people enjoy tidying up and working outside if they're not driven like slaves.


by antiHyde on Sat Nov 04, 2006 at 12:18:39 PM EST
[ Parent ]

Re: Why don't we just pay everybody the same? (3.00 / 1)

Why not just pay everybody the same and provide bonuses based, for example, on profit sharing?

Well, I think that's a great idea, since it would mean that the CEO's, no matter what their profit share, would make the same as the janitors when, in fact, they earn no profit for the shareholders.

But while its an intriguing idea for the private sector, it would seem to reduce the ability of non-profits to attract skilled personel if it was made a requirement rather than, as at present, an option that any firm is free to explore.

However, that seems to be a rather abrupt change in subject. A poverty-line minimum wage is not about wage equalization. A CEO will still make hundreds of times more than minimum wage workers in their corporations, even if the minimum wage is raised from $5.15/hour up to the two person poverty line minimum wage of about $7.50 per hour.


*John Edwards* ... and the JE08 Supporters Blog
by BruceMcF on Sat Nov 04, 2006 at 01:55:36 PM EST
[ Parent ]

It's a problem in the USA (3.00 / 3)

I am glad for the rally in Philadelphia and for all those who helped by being there.

I have to give a special mention to John Edwards as he has been going across the country talking about poverty and minimum wage. Key issues to him. He has been working endlessly and going to Raise minimum wage rallies all over the country.

He all so has a great interactive map on his website about minimum wage and the differences from state to state.

http://oneamericacommittee.com/action/in crease-the-minimum-wage/

Thanks for your Post - it is one of the most important issues to many Americans.


Check out the New Progressive Blog EENRBLOG
by dk2 on Sat Nov 04, 2006 at 11:07:04 AM EST

Re: It's a problem in the USA (none / 0)

And predatory lending... that's one of his big issues, too.  Predatory payday loan outfits that charge 300% interest or more.


by MyDD Fan on Sat Nov 04, 2006 at 01:57:55 PM EST
[ Parent ]

Re: PA Tour: Winning Hearts and Minds with Minimum (none / 0)

Don't forget ACORN who was also instrumental in the campaign to raise the PA min wage as well as the group who put the issue on the ballot in MO, AZ, OH, and CO this year. Also to the anti-min wage ranter above, your economic theory is outdated. The Economic Policy INstitute released a letter last month signed by 650 economists, including 5 Nobel Prize winners, who note that modest increases in the minimum wage have no discernible impact on job losses. Further, states with higher minimum wages have lower unemployment. Thanks for the propoganda, but it's left over from the 1980's and has been thoroughly disproved by the realities of over 20 states having higher minimum wages than the Fed. Government. And yet the sky hasn't fallen and the economy hasn't cratered.
by nathanhj on Sat Nov 04, 2006 at 11:50:00 AM EST

Minimum Wage (3.00 / 1)

To quote John Edwards... "America, We're better than this!"
                                                                        Photobucket - Video and Image Hosting
by Carolina Voice on Sat Nov 04, 2006 at 01:39:50 PM EST

It's not just people making $5.15... (3.00 / 3)

...it's everybody making less than $7.25 an hour who see an immediate, direct benefit from raising the minimum wage. And people slightly higher up the pay scale will feel the ripple effects as well.

And no, contrary to GOP talking points, McDonald's isn't going to close because of this, and neither are the few remaining mom-and-pop stores that Wal-Mart hasn't already put out of business.

Some people question the political effectiveness of this issue, just as some question John Edwards' relentless focus on poverty. But Republicans' economic "policies" are pushing more and more people to the brink, and a lot of them are people who have voted GOP in the past for all of the wrong reasons. Democrats can win these people over by demonstrating that unlike the other side, we get it and we're ready to do something about it.


John Edwards 2008
by MeanBoneII on Sat Nov 04, 2006 at 02:06:26 PM EST

Re: PA Tour: Winning Hearts and Minds with Minimum (3.00 / 1)

Raising the minimum wage is one issue that the Democrats should constantly focus on in the next couple elections. I'm glad polticians like John Edwards keeping fighting for good wages. If we didn't have people like him and other good Dems helping to put these initiatives on state ballots, we'd never see a raise. I'm hoping that universal health care is next on the Democratic agenda. If we can elect a universal health care proponent like Edwards or Feingold in 2008, it would help so many people make ends meet.


Netroots Director for Oregon Senate Candidate Jeff Merkley
by Sarah Lane on Sat Nov 04, 2006 at 07:18:29 PM EST


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