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Title: Rich Senators Defeat Minimum-Wage Hike
Source: WESH - Channel 2 in Winter Park Fl
URL Source: http://www.wesh.com/helenthomas/5183628/detail.html
Published: Oct 29, 2005
Author: Helen Thomas
Post Date: 2005-10-29 15:10:40 by Red Jones
Keywords: Minimum-Wage, Senators, Defeat
Views: 46
Comments: 41

Rich Senators Defeat Minimum-Wage Hike

Congressional Pay Rises While Minimum Stays Same

Helen Thomas, Hearst White House columnist

U.S. senators -- who draw salaries of $162,100 a year and enjoy a raft of perks -- have rejected a minimum wage hike from $5.15 an hour to $6.25 for blue-collar workers.

Can you believe it?

The proposed increase was sponsored by Sen. Edward Kennedy, D-Mass., and turned down in the Senate by a vote of 51 against the boost and 49 in favor. Under a Senate agreement, it needed 60 votes to pass.

All the Democrats voted for the wage boost. All the negative votes were cast by Republicans.

Four Republicans voted for it. Three of the four are running for reelection and were probably worried about how voters would react if they knew that their well-heeled senators had turned down a pittance of an increase in the salaries of the lowest paid workers in the country.

The minimum wage was last increased in 1997.

Kennedy called the vote "absolutely unconscionable."

The lawmakers are hardly hurting. They get health insurance, life insurance, pensions, office expenses, ranging from $2 million on up, depending on the population of a state. The taxpayers also pay for their travel, telecommunications, stationery and mass mailings.

AFL-CIO president John Sweeney said the rejection was "outrageous and shocking."

Sweeney said minimum-wage workers "deserve a pay raise -- plain and simple -- no strings attached."

He said it is "appalling that the same right-wing leaders in Congress -- who have given themselves seven pay raises since the last minimum wage increase -- voted down the modest wage increase proposed by the Kennedy amendment."

During the same period since 1997, raises that the Senate has given itself bolstered senatorial pay by $28,000 a year, Kennedy said.

"If we are serious about helping hard-working families, we will give a fair raise to America's low-income workers without taking away essential protections," he added.

The Senate also killed an amendment proposed by Sen. Michael Enzi, R-Wyo., which also would have increased the minimum wage by $1.10 but included drastic measures such as wiping out the 40-hour work week, cutting overtime pay and weakening job safety and health protection.

At the same time, Enzi wanted to sweeten the pot for small business by providing tax and regulatory relief and to exempt small business from the Fair Labor Standards Act.

Kennedy likened the Enzi bill to an "anti-worker poison pill" and said it would "severely hurt millions and millions of workers."

According to the Census Bureau, there are 37 million Americans living in poverty, up 1 million in just a year.

Statements by President George W. Bush since the Gulf Coast hurricane disasters indicate he has a new awareness of the plight of the poor in this country. Katrina and the devastation of New Orleans have made the more affluent realize the hardships suffered by poor families.

When asked about the Kennedy measure, White House press secretary Scott McClellan said Bush "believes that we should look at having a reasonable increase in the minimum wage ... But we need to make sure that, as we do that, that it is not a step that hurts small business or prices people out of the job market."

Bush has not weighed in with his own proposal for a pay hike.

The Senate's action comes at a worrisome time when motorists are paying much more for gasoline and heating bills are expected to rise by 56 percent this winter, according to Kennedy.

As a result, families will have to tighten their belts to pay for the basic necessities.

"It is shameful that in America today, the richest and most powerful nation on earth, nearly a fifth of all children go to bed hungry at night because their parents, many of whom are working full time at the minimum wage, still can't make ends meet," Kennedy said.

Kennedy has been in the forefront of the fight for increases in the minimum wage for years, and I don't expect him to throw in the towel now.

Congress still may have a chance to redeem itself in the eyes of the less fortunate -- before the 2006 elections.

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Begin Trace Mode for Comment # 37.

#35. To: Red Jones (#0)

Every single time the minimum wage has been increased it has driven massive numbers from the workforce, or pushed them into exempted jobs.

Every time it is raised it gives someone somewhere the incentive to create an automated burger flipper, or automatic car wash, or a robotic lawn mower.

The higher the minimum, the faster jobs will flee to Mexico and China. Automatic Union wage increases are frequently keyed to the minimum.

It's time people concetrated on getting out of debt and stashing some for hard times because it's not going to be a choice of whether you want to accept low wages or not, it's going to be a choice between accepting low wages and having any job at all...

Axenolith  posted on  2005-10-30   0:22:44 ET  Reply   Untrace   Trace   Private Reply  


#36. To: Axenolith (#35)

the actual facts are that since 1970 the real minimum wage taking into account simple inflation has gone down dramatically and the unemployment rate has gone up during that same time. this should discount any assertion that raising the minimum wage causes unemployment, at least in our practical experience. i'm sure if you raised minimum wage beyond some point it would harm employment. perhaps there are some other causes of the high unemployment we've been experiencing since 1970 besides the drop in minimum wage as well.

Red Jones  posted on  2005-10-30   0:33:31 ET  Reply   Untrace   Trace   Private Reply  


#37. To: Red Jones (#36)

the actual facts are that since 1970 the real minimum wage taking into account simple inflation has gone down dramatically and the unemployment rate has gone up during that same time.

Unemployment dropped from 11% in 1982 to 6% in 1988 due to the erosion of the minimum wages effect by inflation.

Unions would be crushed without a minimum wage, they'd never survive the low wage competition.

Granted, the economic effects can be debated for ages but Rothbard points out the key issue, the removal of the freedom for parties involved in economic activity to conduct business without the nanny state being involved. And it's not like we'd be removing any "safety nets", you can still get years of welfare.

Real money would aid in killing this discussion posthaste too!

Axenolith  posted on  2005-10-30   1:46:18 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 37.

#40. To: Axenolith (#37)

you could look at it that way. but the growth of the 1980's was not caused by the decline in (inflation adjusted) minimum wage. It was caused by letting the US dollar float from 1981 to 1984. It adjusted downward in price. American producers were competitive on world markets. The domestic economy boomed. That is why the unemployment rate came down in 1981 to 1988.

But the peak on the inflation adjusted minimum wage occurred in 1969. In that year unemployment was very low. I think 4%. But in those days they actually measured unemployment. Today we measure 5%, but we stopped actually doing the survey work to measure unemployment in 1993. So today's 5% unemployment rate is not a real measure. If we measured it the way we did in pre-1993 period, then unemployment would be 7-9%, much higher than when mini wage was at its peak.

There is no statistical relationship in our experience the last 55 years between minimum wage and unemployment rate.

Red Jones  posted on  2005-10-30 06:09:01 ET  Reply   Untrace   Trace   Private Reply  


End Trace Mode for Comment # 37.

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