Sunday, March 16, 2014

Make Hard Work Pay -- Again

One of our country’s most cherished values is the idea that if you work hard you can get ahead, be part of the middle class, raise a family comfortably, and ensure your children will do better than you did. But this is a hollow promise to countless families today. The sad truth is you can work full time in America and not be able to meet your family’s basic needs. A parent working full time at the federal minimum wage of $7.25 an hour earns $15,080 a year before taxes. That’s $4,700 below the poverty level for a parent with two children. Two-thirds of the 16.1 million poor children in America live with an adult who works, and 30 percent live with an adult who works full time year-round.
 
As CDF’s recently released The State of America’s Children 2014 report highlights, in no state can a parent working full time at the minimum wage afford a fair-market rent two-bedroom apartment and have enough left over to pay for food, utilities, and other necessities. Child care costs alone can eat up more than half of a parent’s paycheck: The average cost of center-based child care for an infant is $9,500 a year. Most experts agree that families need to earn twice the poverty level to be able to begin to provide adequately for their children.

Today we have an opportunity to begin to realign our values by enacting the Fair Minimum Wage Act of 2013 which would raise the minimum wage from $7.25 to $10.10 an hour, the first increase since 2009, and raise the minimum wage for tipped workers for the first time since 1991. The current federal minimum wage is worth 32 percent less in inflation-adjusted terms than at its peak in 1968. If it had grown at the same rate as wages for a typical worker in America since 1968 it would already be $10.65 an hour. But if it had grown at the same rate as productivity of the economy during that period it would be $18.30 today. So increasing the minimum wage to $10.10 an hour would restore the minimum wage closer to what it would have been if it had kept up with average wages but still leave it far below what it should be, given productivity and economic growth since the late 1960s.

Nationwide, increasing the minimum wage to $10.10 would increase a full-time worker’s salary to $21,008 and put $31 billion additional dollars in the pockets of as many as 24.5 million low-wage workers according to the Congressional Budget Office (CBO), Congress’ official budget arbiter. It would lift 900,000 people above the official poverty threshold. Nearly 90 percent of those benefiting would be 20 years or older and over half would be working full time. According to the Economic Policy Institute those affected by the minimum wage increase earn on average half of their family’s total income. The Economic Policy Institute has also found more than a quarter of those benefiting would be parents. 

Most importantly, the increase to $10.10 an hour would improve the lives of an estimated 14 million children — nearly one in five children in America — by helping their parents put nutritious food on the table, keep a roof over their families’ heads, and make sure their children get the health care they need to ensure they can develop to their full potential. And an increase in the minimum wage would not cost the government anything — as the CBO acknowledged, it might even save money in the short term as people with increased incomes need fewer government benefits and pay more in taxes.

The increase also would help spur the economy. Recent research from the Federal Reserve Bank of Chicago found that raising the minimum wage to $10 could increase U.S. gross domestic product by up to 0.3 percentage points in the short term. Some resist a minimum wage increase because of fears it would lead to job losses, but after extensive research the latest consensus in the field is that this is not the case. This is why more than 600 economists, including seven Nobel Laureates, have endorsed the increase to $10.10, saying in a joint letter to President Obama and congressional leaders: “In recent years there have been important developments in the academic literature on the effect of increases in the minimum wage on employment, with the weight of the evidence now showing that increases in the minimum wage have had little or no negative effects on the employment of minimum-wage workers, even during times of weaknesses in the labor market.” And even if you don’t believe the newest research is the most valid, and look instead at all the research combined, as the Congressional Budget Office conservatively did in its February 18th report, CBO’s best estimate was that this change would reduce employment by 0.3 percent. Should we really deny a certain income boost to 24.5 million workers to spare a much smaller number uncertain job loss? Of course not. If Congress is worried about uncertain job losses from a minimum wage increase, they could offset them through complementary policies like changes to the Earned Income Tax Credit, which boosts employment among low- and mid-income earners, or private or public sector jobs programs.

Increasing the minimum wage would give an immediate pay raise to millions of workers in America who are still waiting for the country’s economic recovery to reach them. No one in rich America should be working full time and be forced to live in poverty. That’s why nearly three-quarters of Americans support raising the minimum wage, including a majority of Democrats, Republicans, and Independents. There is no reason for Congress to continue to deny hard-working Americans, many of them parents, a long overdue and needed pay raise. It’s long past time to begin to make work pay again.

27 comments:

  1. One thing that I always wonder about is how I will be able to support my family once I am established. I don't want to live paycheck to paycheck, but comfortably so that I do not have to worry about instances such as those mentioned in Mrs. Edelman's column. The numbers are clear, and it is impossible for a family to support their children and still live in a two bedroom apartment. Everyone does not have the exposure to higher education, despite opportunities. Sometimes, life happens, and various decisions have to be made, such as foregoing school after high school graduation and entering the workforce. With the cost of education already being unaffordable, it seems as if there is no hope for some families. With poor families there will always be poor children. I do believe that more can be done, especially if experts in the field of economics have proven that raising minimum wage would be a win-win situation for all. It seems that one battle after another plagues America and the children are the ones that suffer the most.

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    1. Neffiee I couldn't agree with you more. It seems like it always something and you're right children are continuing to suffer from all of America's "issues." America tends to recognize that there is an issue find a solution but never do anything about it. I too worry that when I get a family I will not be able to take care of them financially because of all the expenses that are required to take care of a household. You are absolutely right "life happens" there are not things in place to help people when "life happens." Like other situations that are going on I wish that I could have a positive mindset. I wish that I could walk away knowing that things are going to get better. I agree more needs to be done this isn't something that can be overlooked and this isn't something that is going to go away over night.

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    2. I think that Neffiee and many others have made some excellent points on this column. This just seems like another instance that our Nation is way behind on the times and our priorities are very skewed. We know what the solutions is with this particular issue, well we know part of the solution, but there are still many barriers in our way. As Ms. Edelman states, "There is no reason for Congress to continue to deny hard-working Americans, many of them parents, a long overdue and needed pay raise. It’s long past time to begin to make work pay again". We just need to show them what this reason is with out lobbying, voting, and forces like CDF.

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  2. Our country has struggled through its history to appropriate wages so that every family is able to live reasonably. What puzzles me is that 2013 was when the Fair Minimum Wage Act came about when Americans have had these issues for years. Like Mrs. Edelman alluded to, the priorities that we share as a nation have to be adjusted. Often, its easy to think of economics as a strictly business issue but its something that will affect the future generations in education and our nation's jail rates. Recently, I visited a prison with my co-workers and many of the men there stated their economic situation as a reason why their lives are how they are. It was so disheartening to hear and I thought of children who live in the same conditions now and how their future will be affected because the minimum wage rates.

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  3. When I speak with young people I always, always mention to them "no babies!" Yes, the cost of living is astronomically high and working minimum wage is not enough, educating individuals on how difficult it will be to provide for a family without higher education is paramount. I personally believe that if I can get my students to their junior year of college, they will understand that financial benefits of waiting to make babies.

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    2. Evetty, I agree with you about the need to educate our young people about the economic hardships and responsibilities that are inherent when it comes to raising a family. The task is made exponentially more difficult when parents attempt to accomplish this larger-than-life undertaking on a minimum wage income. It should be instilled from an early age that although it's extremely difficult at times to accomplish, it is impossible to ignore the overwhelming benefits of a higher education (starting with a high school diploma) especially when it comes to financial, social, and political capacity. Raising your financial, social, and political capacity allows you to not only provide monetarily for your family, but more importantly spiritually. Raising children is financially, emotionally, and physically taxing and as I've witnessed my friends struggle to support their own families even with what can termed "good salaries", I've learned that the obstacles are numerous and that starting and supporting a family requires planning, a quality education (vocational, community college, or university), commitment, patience, and love.

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    3. I agree as well. I think it is very important to educate our young people about the financial hardship they are going to face later on in life if they don't make the right decision now. I look at myself I grew up in a house with a mother with no formal degree and her idea of a great life was to work hard, buy a house, and your set. I did all that work 2 jobs went to school full time, two degrees, home and car owner at my young age and still I struggle because though I acquire so much lifestyle necessities are ever rising but my salary is not. So, the decision I made at 23 financially will effective me till about 32 lol. I understand that we are raising minimum wage but, we as society should not wait until the minimum wage is raised to talk about financial responsbility.

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  4. http://www.upworthy.com/25-really-engaging-images-about-minimum-wage-5?c=ufb1
    Just after reading this article I found a link to this slideshow about Minimum wage that includes much of the same information but in an easier to interpret format.
    I fully agree with raising the minimum wage. Two quotes that stand out to me in this argument are: “In the wealthiest nation on earth, no one who works full time should have to live in poverty.” – President Barak Obama, and “Too many minimum wage workers are forced to rely on government subsidies. This burden, he argues, should be shouldered by employers, not by taxpayers.”- Ron Unz
    I believe in teaching people to fish vs. giving them a fish and I think that is what will happen with an increase in federal minimum wage. By raising people out of the poverty level we are enabling to provide for themselves instead of providing for them. There is the mentality that people who rely on government assistance are lazy and don’t want to work, but as the article showed, many are working full time and still cannot make the ends meet. A raise in minimum wage is definitely called for.
    I really like that this article addressed the buying power of wage raises. Due to the rate of inflation and how everything is becoming more expensive, each year without a raise is essentially a pay cut. If pay does not rise to address inflation then individuals will have less buying power than they did the year before. This article hits close to home as I plan on teaching in North Carolina which has recently received negative national attention for its abysmal teacher pay. Teachers have not had a raise for years which causes teachers to fall behind as inflation surpasses them. Overall I think employers need to address the rate of inflation when considering wages for their employees and if the government sets a national example then I believe that is more likely to happen.

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  5. There is a huge disparity among those who currently only make minimum wage. Without at least making the minimum living wage, it is impossible for adults and their children to have access to everything they need to live a stable life. At times here in America, the people who are making laws and regulations are most often those that do not personally experience the hardships of those in the low income population. Either they are oblivious to the poor population's needs, or they just do not care because it doesn't apply to them. I fully support the raising of minimum wage to 10.10. It actually should be more than that. The government constantly complains about having to provide government assistance to so many people, yet they are not doing anything to help those people help themselves. Our nation as a whole is entirely too selfish and unwilling to help our own people. For years, people have been restricted to a low socioeconomic status throughout their entire life. They are unable to advance in large part because they are not provided the opportunities to advance and raise their income. Nearly 50 percent of people born into poverty remain in that social class their entire life if they do not get a college education. I read an article about it for one of my classes and I will post the link below if anyone wants to read it.

    http://www.huffingtonpost.com/howard-steven-friedman/class-mobility_b_1676931.html

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    1. Hey Jackie,
      Thank you for your post. I definitely agree with you that our nation is quite selfish and unwilling to help our own people. We are one of the most richest countries in the world but yet their are U.S. citizens living here that can barely support themselves. It is truly unfair. I have also came to beleive that the law makers do not care about helping the poor live comfortably because they do not fall in that category themselves. Oftentimes, no one cares about bad situations until they are caught in them. This indeed should not be the case. I suppport the raising of the minimum wage which should have taken place a long long time ago.

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  7. When I think of minimum wage I immediately begin to think of individuals who are struggling to provide the basic needs for their children. As a social worker, I often see people begging the government for services because they do not have the financial needs to take care of their families but being denied because they make too much money. As Mrs. Edelman mentioned in her article “ in no state can a parent working full time at the minimum wage afford a fair-market rent two-bedroom apartment and have enough left over to meet the family’s basics needs”, I find this very alarming. Imagine three children living in a single parent home and only works minimum wage. This parent does not receive food stamps because they work too much and receives no additional services from the government based on income. Essentially, the government has left these children dangling in mid air however; they do not see it that way. Do they see it at all? Have they had to provide for a family of four and only making minimum wage? Have they gone nights without eating just to make sure their children were not hungry? No, and they never will. They do not understand the day-to-day struggles that families and individuals go through just to make it for two weeks. It is upsetting and highly frustrating. Until they are able to experience minimum wage first hand, they will never understand.

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  8. Even though I am in no way starving, between student loan debt, health insurance, and the accruement of debts and bills over time, I often began to wonder if perhaps I am somehow failing as an adult. One day my mother said "Leslie, you work multiple jobs, you don't spend crazy, you budget, and you try. You just don't make enough money. That's not a reflection of you as much as those who pay you." I appreciated her words, but it sounded a little like the "i love you because I'm your mom" statements. This article really put my mother's words in perspective. I live in a country that is systematically insuring that someone is always on the bottom. And all the while, you get conflicting messages, because while people are working just to avoid starvation and homelessness, "specialists" want us to exercise more, eat organic vegetables, take more "personal time" and "get out of debt."

    It's absolute malarky. I've done the math. If you are unfortunate enough to work full time and still need a part-time job, like so many of us, there's simply no way to do all the things one needs to do in a week, and be balanced. Something will be suffering drastically. Usually it's health. Or mental health.

    At Mrs. Edelman's meager $10.10, a person with 2 children would still be under the poverty line for 3 people in the household. So it's not like she's suggesting a revolutionary number. I would go so far as to suggest even $13 as a minimum, which is still tiny, as it would put a single mother above the poverty guideline for herself and 3 children. The average American household is about 3 people. Our minimum wage SHOULD put the average person above the poverty guideline for the average American household. Especially since our dollars are going to continue to inflate, and it will probably be many more years before they consider adjusting it again. It is a shame and a travesty that even as the price of food, housing, and gas continue to rise, and government assistance continues to become harder to acquire, that a blind eye is being turned against people who simply cannot afford to live. It's nearly genocide.

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  9. I love Neffiee's comment that "life happens." I believe that our failure to support low-income families often stems from people's subconscious belief that there is something separating themselves from "those people" (low-income families). "Those people" do not have enough. "Those people" are poor. "Those people" need assistance. The truth is that many of us are one job loss or one unexpected expense away from being "those people." When people make this subconscious division, it is much easier to assign blame to individuals rather than recognize that our system is flawed.

    Twenty percent of the students at my school are considered homeless. When acquaintances ask, "Well, what do the parents do during the day?" I respond - "They go to work!" This assumption that homeless and low-income individuals are all unemployed is completely incorrect and incredibly detrimental to the movement to reduce income inequality. We must echo Mrs. Edelman's words every chance we get to highlight the fact that "working class" absolutely does not imply financial stability. Having an entire workforce that cannot make ends meet is simply not sustainable.

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  10. I must admit that although I try to stay as up to date in politics as I can, the fact that there was such a notable recommendation for an increase in minimum wage had slipped under my radar. Needless to say, I'm very happy that this issue is quickly approaching decision time. However, to say I am less optimistic is a severe understatement. I can already see the countless Tea Party representatives trotting up to the podium bemoaning the loss of jobs and the endless cycle on Fox "News" on what will surely be dubbed "How Obama wants to take your job." The fact of the matter is that we currently have a Congress that will oppose literally anything our president endorses, and a corporate society that treats providing for employees as a cost that need to minimized by any means necessary. I truly hope that the overwhelming support for a raise in minimum wage will be enough to drown out the rhetoric that will undoubtedly be hurled in its direction, but I'm just not sure.

    We as Americans really must do a better job at the polls this November. If an overwhelming number of Americans support this raise, and it doesn't happen, then clearly our government is not acting in the interest of those that it serves and thus a change needs to be made. The Democratic Party simply cannot afford to lose the Senate and I sincerely hope that by some miracle they will be able to gain at least some seats in the House. Otherwise, I see the current trends of inaction continuing, if not getting worse.

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  11. I agree that minimum wage should be higher, but one of my hang ups is the fact that we believe that people should be able to live comfortably when they make the least they can legally make.
    I'm interested to see what will happen in the future as these changes are made. I hope it doesn't result in more people losing jobs because corporations decide to not allow as many workers for higher wages. That would completely defeat the purpose of raising wages for millions. But I fear that's what will happen. Similar to what we are seeing with the Affordable Care Act being passed. More people have access, but fewer jobs are offering coverage because people have other options now.

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    1. As I was reading the article, I was thinking the same thing, Claricha. What will be the impact of raising the minimum wage? Raising the minimum wage will do all the positive things mentioned in the article, but there's no way to make a change of that nature and there not be a domino reaction.

      It was shocking to see the total for full-time on minimum wage totals $15,080. Including children, that is nearly impossible to survive. As an adult with a full-time job that is salaried, sometimes it is difficult to make ends meet, and I have no children. The effects of poverty are apparent and harsh in the United States, and like the article states, "No one in rich America should be working full time and be forced to live in poverty."

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    2. Much like Claricha and Tristan I too think there should be something done about Minimum wage. It has to increase to try and provide a better life for those who currently make $7.25. Just thinking about how this could effect members of my community and really change some families living condition. Its kind of discouraging when you work full time on minimum wage and only can bring home $15,080 a year. And this is before taxes I could not imagine living off this. I'm grateful for the step I've taken in life to help secure my future but we must strive to make the same future secure for all others.

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    3. Claricha I agree wholeheartedly with your prediction and I have had similar projections about our nation’s minimum wage. When it comes to this topic, I have somewhat of a different view than most. I don’t think that the minimum wage should be raised, but I think that a “living wage” should be instated. When I think of minimum wage, I’m reminded of my first job at the grocery store that I worked while in high school so I could purchase all that I wanted to complete my prom experience. I barely worked 20 hours a week for $7 an hour and I was able to purchase for myself, what my parents wouldn’t have to. That worked perfectly for me and I don’t think that teenage workers with no experience should be put on the same level as working parents who are trying to support their families. This would cause competition between someone buying a class ring and someone trying to feed their family. If there were living wage in addition to a minimum wage that is based on work experience, education, household status and age, this could eliminate the completion between teens and parents, while still allowing companies to pay lower wages for entry level positions.

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  12. In my opinion, the imbalance of wealth and economic power next to slavery is the biggest injustice to American society. The impact of low wages has systemically created a distinct poverty line in which the powerful elite and governmental control deplorable create and tolerate. I find it extremely difficult to separate racial disparities from economics when it seems apparent the working class, the poor, and minorities (often all people of color) are subdued to low hourly wages, cut off from medical benefits, and not provided avenues towards home ownership.

    The American system seems purposefully set-up to keep clearly divided lines of power the working class versus the elites. Raising the minimum wage should be standard, a procedure in place which evaluates and analyzes rate of inflation with economic climate, quantifying the minimum wage. By not taking, a hard look at the raising minimum wage could prove detrimental for the future of America, and its children already struggling with poverty circumstances. The impact on child’s well-being can be wide-ranging.

    Children living in poverty are more likely to go hungry, reside in overcrowded or unstable housing, be exposed to violence, and receive a poorer education. Poverty also exposes children to chronic stress, which can hinder their physical, social, and emotional development. Children in families with inadequate income may face more substantial health problems than those in families with enough to meet basic needs. Raise the minimum wage!

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  13. I agree with Neffiee, Thomas, and Taylor. I too often think about how to provide for my family once I have to. Neff mentions how she does not want to live pay check to pay check, but that’s how I am living now. I often think, I know this can’t happen forever. I need to establish some type of save habits so when I get a family I will have that in place already. But, as she mentions, Life happenes and some decision have to be made and everyone isn’t as fortunate as I was to go to college get a degree then get a masters degree and work in my field right after. I agree that more can be done starting with the increase of minimum wages. This will really help family with lower incomes. I agree with Thomas when he mentions our nation being behind on the times and our priorities being very skewed. He states that we often know the solution or some of the solution but there are always barriers that block us from getting to the solution. Mrs. Edelman states, “There is no reason for Congress to continue to deny hard-working Americans, many of them parents, a long overdue and needed pay raise. It’s long past time to begin to make work pay again”. I could not agree more with this statement. The time is NOW!

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  14. It's amazing that the minimum wage is so low and even lower when adjustments are made for inflation. It's pretty ridiculous if you think about it. It's almost as if those with power want to do everything they can to stay in power and keep others out. If we really want to see a change we can't depend on the policy makers to be men and women and do what is right for our country and its citizens. Especially given their track record. We have to stand up and make sure they do what is right and not what will make them the most money.

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  15. I agree no one should be working full time and still living in poverty. The minimum wage is low but if it is raised to 10 bucks I'm pretty sure the economy will begin raising prices as well to adapt to that raise. So many people will still continue to live in poverty, I believe the economy is so unfair that it wants people in poverty to continue to struggle, the wage will be raised but prices will too so nothing in fact changes.

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  16. Reading this column immediately made me think of the opening scene from one of my favorite HBO series, The Newsroom. The first 8 minutes of the very first episode happen to be my favorite 8 minutes of any show. They focus on a lecture/debate involving a liberal, a conservative, and man (a famous news anchor and the main character of the show) who does not identify as either. A student asks why America is the greatest country in the world. After the first 2 guests give their answers, the 3 proceeds to rant about why it isn't the greatest country in the world. Then, he begins to reminisce about why it was. He says, "It sure used to be. We stood up for what was right. We fought for moral reasons. We passed laws, struck down laws for moral reasons. We waged wars on poverty, not poor people. We sacrificed. We cared about our neighbors." What happened between that time when America used to be this shining pillar of hope and Freedom and now? Why is the issue of minimum wage still an issue? Once again, we need to wage a war on poverty, and not poor people.

    Btw, here's the link to the scene. It's an HBO show. So, some of the language is a bit much, but I think it's a scene everyone in the country needs to watch. Aaron Sorkin (the creator and writer of the show) hit on a few topics in the rant that I think everyone needs to think about.
    https://www.youtube.com/watch?v=1zqOYBabXmA

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  17. I agree with article for the most part, however there are some “gray” areas. Minimum wage is an undeniable issue in this country. Raising minimum wages would surely improve the quality of life for some. However, in order to truly address issues around financial stability for impoverished families, there has to be additional opportunities for families to become financially literate and help families make responsible financial decisions and investments. Moreover, even if minimum wage is raised, I agree with Jake in saying that the new wages must keep up with inflation. Unless an accurate number is calculated which will match wages to the coast of living in this country, this cycle will be perpetual.

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  18. I agree with Rashida. Raising minimum wage would help but a lot of times, especially people I know, would now use their extra earnings to go buy more stuff that they don't really need so it would help the economy financially but that doesn't say exactly what everyone will choose to do with their raised wages.

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