American Forum

AMERICAN FORUM
By Christine Owens

Two years ago this week, 4.5 million of America’s workers enjoyed a modest pay increase, as the federal minimum wage rose from $6.55 to $7.25 an hour. The increase was the final of a three-step boost enacted in 2007. Of those getting a bump in pay, more than three-quarters were adults, nearly two-thirds were women, and nearly half a million were single parents with children under 18.

Yet during the past two years, these working families have seen the real value of their wages fall. Minimum-wage earners working full-time make roughly $15,000 a year. Had the minimum wage rate kept up with inflation, their paychecks would have increased by $800 this year. Instead, our nation’s lowest-paid workers have had an even harder time providing basic needs for their families. This is one more reason that Main Street is having a tough time recovering from the economic calamity brought on by financial collapse.

CEO compensation grew 23 percent in 2010, while pay for the average American worker grew only half a percent. Minimum wage workers have fared even worse: Since the 2009 increase, the real value of the minimum wage has fallen 5 percent.

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AMERICAN FORUM

By Tsedeye Gebreselassie

In 2006, Nevada voters did a really smart thing. Recognizing that their state’s minimum wage stayed flat year after year, despite rising costs of living, the people of Nevada voted to index their minimum wage rate to adjust annually with the cost of living. In the last few years, these small annual increases have helped thousands of working families make ends meet in a rough economy, while providing a modest boost in precisely the type of consumer spending our nascent recovery needs.

Rather than celebrate voters’ sound economic move, critics of the minimum wage see an opportunity to once again toss out their usual—and widely discredited—claims that a strong minimum wage is a “job-killer.” Counting on understandable anxiety about Nevada’s stubbornly high unemployment rate, opponents of the minimum wage have proposed state legislation that would begin a repeal process for the initiative passed by Nevada’s voters just four years ago.

Let’s quickly dispense with these “job-killing” claims. Real-world experiences with minimum wage increases have produced little evidence of job losses. The decade following the federal minimum wage increase in 1996-97 ushered in one of the strongest periods of job growth in decades. Analyses of states with minimum wages higher than the federal floor between 1997 and 2007 showed that their job growth was actually stronger overall than in states that kept the lower federal level. And just last winter, a rigorous study finding that increasing the minimum wage does not lead to job loss was published in the Review of Economics and Statistics. Economists at the University of Massachusetts, University of North Carolina, and University of California compared employment data among every pair of neighboring U.S. counties that straddle a state border and had differing minimum wage levels at any time between 1990 and 2006. Analyzing employment and earnings data of over 500 counties, they found that minimum wage increases did not cost jobs.


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AMERICAN FORUM

By John Shepley

As a small business owner, I support legislation to increase Maryland’s inadequate minimum wage because it makes good business sense. It’s an important part of our economic recovery and economic progress. I know businesses can pay a better minimum wage and still make a profit -- it helps the business prosper.

Opponents of this legislation like the Maryland Chamber of Commerce, the Maryland Retailers Association, and the Restaurant Association tell you the time is not right to increase the minimum wage because the economy is weak. What they don’t want you to remember is that for them the time is never right. In 2005, they opposed legislation to raise Maryland’s minimum wage from $5.15 an hour to $6.15. They opposed federal legislation to raise the minimum wage in 1996, in the middle of the longest economic expansion in our nation’s history. Then president of the Maryland Retailers Association, Tom Saquella, cut to the chase when he said about their opposition in 1996, “A lot of it’s philosophical.”

So let me cut to the chase: If my business, a small nursery in rural Harford County, can profit and grow when paying a wage that people can thrive on, then there’s no reason any viable business cannot do that too. Unless, that is, their philosophy is getting in the way of good business sense.


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José J. Rodriguez

FLORIDA FORUM

By José J. Rodríguez, and Paul Sonn

Since January 1, more than 180,000 of Florida’s lowest-wage workers -- people caring for the elderly, serving food at the local diner, and cleaning and securing our office buildings -- have been denied an annual cost of living adjustment required by law. Acting in violation of the Florida Constitution, the state failed to implement a legally mandated 6 cent increase in our minimum wage for 2011.

Paul Sonn

Back in 2004, Florida voters overwhelmingly supported a constitutional amendment -- by a lopsided 78 to 22 percent margin -- creating a state minimum wage and indexing to inflation so that it keeps pace with the rising cost of food, clothing, electricity and other necessities. Voters realized that without such protection, the ability of minimum wage earners to provide for their families would fall each year as prices rose but the minimum wage remained stagnant.

On New Year’s Day, seven states with laws like Florida’s -- Arizona, Colorado, Ohio, Montana, Oregon, Vermont and Washington -- increased their state minimum wages to keep pace with inflation. Florida did not.


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MISSOURI FORUM

By Lew Prince

The Republicans in the Missouri Legislature are trying to overturn the clearly expressed will of the people in order to give gigantic welfare checks to some of America’s biggest corporations.

Nearly 1.6 million Missourians voted to raise the minimum wage in 2006. Only 501,657 voted against the proposition. That’s a three to one margin.

To put this in perspective, in the same election, Democrat Claire McCaskill beat Republican Jim Talent by less than 49,000 votes. That means over a million Republican-leaning voters saw the need to raise the wages of the poorest working Missourians. According to exit polls, the minimum wage proposition was favored by Democrats, Independents and Republicans; liberals, moderates and conservatives; urban, suburban and rural voters; low-income, middle- and high-income voters; and voters of all ages.


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