(ThyBlackMan.com) “It’s time to give America a Raise!” With these words, President Barack Obama called for Congress to raise the minimum wage from its current rate of $7.25 per hour to $10.10 per hour over the next two years. Furthermore, the President is proposing indexing the minimum wage to inflation so that it rises automatically as Americans see the cost of their living expenses rising. The current federal minimum wage is set at $7.25 an hour. Eighteen states have higher mandates. The federal minimum wage was last raised in 2007 in a two-stage process to get to current levels. Because it is not indexed to inflation, the minimum wage has lost ground over time. In 1968, the floor was set at the equivalent of more than $10 an hour in today’s terms.
Through executive order, the President has taken steps on his own to address the issue by raising the minimum wage for contract working at federal facilities, but this only affects a fraction of the millions of individuals subject to the minimum wage in the United States. In order to help these individuals, the President will have to convince Congress to act to raise the minimum wage; great task for a “do nothing congress”.
Getting Congress to act, especially in an election year, will not be easy. Those opposed to raising the minimum wage argue that it will raise the cost of doing business and that small businesses will be forced to pass these costs on to their customers and/or lay off workers to control their own costs. Philosophically, these individuals are opposed to the
government setting wage rates, because they believe it interferes with the workings of the free market. Raising the minimum wage to $10 an hour would lift the wages of 30 million Americans, which represents more than 20 percent of the American work force. It would not only affect the wages of those who work for less than $10 an hour but also of those who make a little more, as employers would raise their pay to hold on to good workers. An overwhelming 40 percent of the work force falls within that range.
The President forcefully counters detractors arguments and continues to take his case on the road to convince the American people directly to push their representatives to act. For the President and his supporters, raising the minimum wage is an issue of fairness and the President is using the minimum wage issue as the main argument for his battle against income inequality. Without an adjustment for inflation, the buying power for those making minimum wage erodes over time, to the point where those on the lowest rung of the economic ladder fall further and further behind; this is especially true for those find it difficult to navigate the current job market. Raising the minimum wage and indexing it for inflation will help lift these individuals back into the realm of productive contributors to our economy and society.
Countering the argument that raising the minimum wage will hurt small businesses and stunt economic growth, the President has issued the results of a poll that shows that 57% of America’s small business owners support raising the minimum wage. This would seem contradictory to the common argument until one realizes that in the current improving economy, most small businesses are already paying their workers more than $7.25 per hour.
Furthermore, raising the minimum wage puts more money in worker’s pockets and as study after study has shown, minimum wage workers tend to spend most everything they make and do it almost immediately, thereby contributing to the success of the overall economy. Raising the minimum wage will infuse the economy with a boost of spending and since the US economy depends on consumer spending, raising the minimum wage will actually act as an economic stimulus moving forward.
Raising the minimum wage will also help reduce government spending. This is an argument that would send free marketers and all the naysayers at Fox News running to the microphones in protest, but it is true. In the current economy, millions of workers making minimum wage also qualify for federal assistance. There are workers all over the United States who apply for and receive SNAP benefits or other welfare benefits. In essence, American taxpayers are subsidizing companies (Mc Donald’s, Wal-Mart, Hobby Lobby etc), that only pay minimum wage, but get the benefits of their worker’s productivity and have increased profits since they keep wages low. Rather than making sure their workers make enough money to live, they are content to pay low wages and let the US taxpayer make up the difference. Raising the minimum wage would raise millions out of poverty and take them off the welfare rolls, thus reducing the amount of money the federal government has to pay for these programs and in effect reducing government spending.
The President and his allies have a long road to travel before a raise in the minimum wage is a done deal, but the arguments are on their side, and the majority of the American people think that raising the minimum wage is not only the right thing to do, but a net plus for the country economically and socially. It’s only a matter of time before America gets a raise. With wages declining, one-third of homes with mortgages underwater, and businesses sitting on record profits looking for customers, America needs a raise. Consider this: The minimum wage does not increase automatically. Congress must pass a bill which the President signs into law in order for the minimum wage to go up; let’s make sure congress hears the voice of the American people and supports President Barack Obama in this worthwhile Endeavour.
Staff Writer; Stanley G. Buford
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