Increase in Federal Minimum Wage is Long Overdue

By: Jack Z. Smith, Knight Ridder
Posted In: Opinion

A member of Congress making $162,100 a year probably has little comprehension of how difficult it would be to live on less than one-15th of that amount.

That cognition chasm appears to be especially wide and deep for many Republican members of Congress.

Last week, the U.S. Senate voted 49-46 against a proposal by Sen. Edward Kennedy, D-Mass., to boost the federal minimum wage from $5.15 to $7.25 an hour- a $2.10 increase.

Kennedy had proposed the long-overdue pay hike- which would have come in three stages over two years- as an amendment to a bankruptcy reform bill. But it was strongly opposed by Republicans in what was predominantly a party-line vote.

A minimum-wage earner working 40 hours a week has an annual gross income of $10,712. That’s less than one-15th of the salary of members of Congress, who also enjoy ample benefits and perks not available to most low-wage workers.

Thanks to callous and indifferent Republicans, the minimum wage hasn’t been increased since 1997. Since that time, members of Congress have received seven pay raises totaling $28,500, an increase easily exceeding the total annual pay of two minimum-wage workers, notes Holly Sklar, co-author of “Raise The Floor: Wages and Policies That Work For All Of Us.”

That’s shameful.

Congress should approve a sizable increase in the minimum wage to help low-income workers and their families. Many are desperately struggling to cope with sharply rising housing, health care and energy costs.

A higher wage floor would not only help those making $5.15 an hour but also put upward pressure on the wages of millions of other working-class persons making $1 to $3 more than the current minimum.

When adjusted for inflation, the purchasing power of the minimum wage has sharply eroded since it stood at $1.60 in the late 1960s. Today’s minimum wage would have to be raised to $8.70 to provide the same purchasing power as the $1.60 wage floor of nearly four decades ago, according to Kennedy.

A higher minimum wage would help working-class families, low-paid single adults and students trying to work their way through college or save money to buy a car.

Every time that Democrats suggest a minimum-wage increase, Republicans pitch a hissy fit. The GOP hand wringers invariably claim that an increase in the floor wage would result in widespread layoffs of low-income workers, bring on a rash of small-business failures and fan a sharp rise in inflation.

How come none of these things happened after the last minimum-wage increase in 1997? Indeed, the late 1990s were marked by strong job growth and a booming stock market.

Had Kennedy’s amendment passed, when fully phased in, it would have meant $4,368 in increased annual pay for a full-time, minimum-wage worker.

The increase might have meant money for badly needed car repairs, long-postponed dental work, a warm coat for winter, a computer to help a child do schoolwork or the purchase of more nutritious food at the supermarket.

It also might have meant having enough money to enroll in college classes to gain the education and skills needed for a higher-paying job.

Higher wages would give many working-class people more money to spend. That in turn helps the economy and generates more jobs.

Taxpayers who bemoan the cost of social programs to help the poor should realize that higher working-class wages reduce the need for Medicaid, food stamps and government housing subsidies.

Those members of Congress who oppose raising the minimum wage might not realize that many full-time, low-wage workers don’t enjoy such benefits as health insurance, a 401(k) savings plan, an expense account or a subsidized membership in a health club. In fact, many of these workers receive little or no paid vacation.

In the wake of Congress’ failure to boost the minimum wage, many states are taking action on their own. Fourteen states and the District of Columbia now have higher minimum wages than the federal minimum, and another 17 states have proposals pending to raise the minimum this year.

Commendably, state Rep. Lon Burnam, D-Fort Worth, has filed a bill to raise Texas’ minimum wage by $1, to $6.15. But don’t expect that bill to get anywhere in a Republican-dominated Legislature.

President Bush has proven that he truly is a compassionate conservative when it comes to catering to the needs of America’s affluent. He has successfully pushed, for example, for congressional approval of significant reductions in top marginal income tax rates, taxes on capital gains and dividends and estate taxes, as well as other measures disproportionately benefiting the upper crust.

Now it’s time for him to show that his compassionate conservatism extends to the working poor. He should shock us all by championing a substantial minimum wage increase.

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ABOUT THE WRITER

Jack Z. Smith is a columnist for the Fort Worth Star-Telegram. Readers may write to him at: 400 W. 7th Street, Fort Worth, Texas 76102.

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c 2005, Fort Worth Star-Telegram.

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Distributed by Knight Ridder/Tribune Information Services.