Congress votes to increase minimum wage, House, Senate pass $2.10 increase as part of Iraq spending bill Options

[moebary]

http://www.msnbc.msn.com/id/18847929/

WASHINGTON - America’s lowest-paid workers won a $2.10 raise Thursday, with Congress approving the first increase in the federal minimum wage in almost a decade.

President Bush was expected to sign the bill quickly, and workers who now make $5.15 an hour will see their paychecks go up by 70 cents per hour before the end of the summer. Another 70 cents will be added next year, and by summer 2009, all minimum-wage jobs will pay no less than $7.25 an hour.

For years, the idea of increasing the minimum wage has been stalled by partisan bickering between Republicans and Democrats.

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That almost became the fate of this year’s proposal. Democratic leaders attached the provision to the $120 billion Iraq war spending bill, which was vetoed by the GOP-controlled White House on May 1 because Democrats insisted on a pullout date for American troops.

But with the House passing a rewritten bill 280-142 and the Senate 80-14, the end is likely near for the longest stretch without the federal pay floor rising since the minimum wage was established in 1938.

Sen. Edward M. Kennedy, D-Mass., called the increase one of “the proudest achievements of this new Congress.”

“We’ve overcome many obstacles — and faced every procedural trick in the book — to get this minimum-wage increase across the finish line,” Kennedy said. “Democrats stood together, and stood firm, to say that no one who works hard for a living should have to live in poverty.”

Bush announced earlier this year that he supported an increase in the minimum wage.

“We pushed for and very much prefer that it be paired with appropriate offsets for small businesses who would be disproportionately impacted by the minimum-wage increase,” White House spokesman Tony Fratto said. “Unfortunately, the offsets in this bill don’t accomplish that.”

This would be the first change since the minimum wage went from $4.75 to $5.15 on Sept. 1, 1997, under former President Clinton and a Republican-controlled Congress.

The liberal-leaning Economic Policy Institute, a research group in Washington, estimates that 5.6 million workers — or 4 percent of the work force — earn less than $7.25.

“This is a great day for America’s middle class,” said Rep. George Miller, D-Calif., chairman of the House Education and Labor Committee. “America’s workers have been waiting for a raise for a long time.”

Currently, a person working 40 hours per week at the current minimum wage of $5.15 makes about $10,700 a year. An increase to $7.25 would boost that to just over $15,000 a year.

The full increase, according to Miller, is enough to pay for 15 months of groceries for a family of three.

More than two dozen states and the District of Columbia already have minimum wages higher than the federal level. Minimum wage workers are typically young, single and female and are often black or Hispanic.

Raising the minimum wage was a key part of Democrats’ midterm election platform. To help make it palatable for Republicans, they added $4.84 billion in tax relief for small businesses to help them hire new workers and offset any cost associated with an increase in the minimum wage.

Republicans had complained earlier that the tax cuts in the House and Senate bills that led up to the final agreement were insufficient, but the inclusion of the provisions in the Iraq war spending bill made it difficult for them to stop them.

“From a small-business standpoint, the House bill was a peanut shell, the Senate bill was peanuts, and the conference agreement is a single shriveled peanut. It is a missed opportunity,” said Sen. Charles Grassley, R-Iowa.

According to the National Restaurant Association, the last minimum wage increase cost the restaurant industry more than 146,000 jobs and restaurant owners put off plans to hire an additional 106,000 employees.

“A minimum-wage increase will cost our industry jobs, and the vital discussion of how to minimize this job loss is getting lost in the debate,” said Peter Kilgore, the group’s acting interim president and chief executive officer.

[GOB]

lame

[Dogmeat]

not surprising....oh well.

[JRockTTU]

It's funny to me how all the democrats take credit for the Minimum wage increase and talk about how they are doing it to help the american people and they have all these hurdles to get over, blah blah blah. But the republicans are for a higher minimum wage also, but they consider how it affects small businesses, who it rapes, and they realized, like the article says, that only 4% of the workforce makes less than $7.25. This is just pandering on behalf of the democrats to try to make the poor people think they care.

My favorite quote from the article that shows how out of touch our lawmakers are from the American people is from Rep. George Miller who said “This is a great day for America’s middle class." Does he not realize that most middle class workers don't make minimum wage, and that the middle class is going to be the people who are screwed hardest by the associated inflation that will come with a minimum wage increase?

[Mommy]

This just makes me want to ask for a raise.

[pebkac]

It's funny to me how all the democrats take credit for the Minimum wage increase and talk about how they are doing it to help the american people and they have all these hurdles to get over, blah blah blah. But the republicans are for a higher minimum wage also, but they consider how it affects small businesses, who it rapes, and they realized, like the article says, that only 4% of the workforce makes less than $7.25. This is just pandering on behalf of the democrats to try to make the poor people think they care.

My favorite quote from the article that shows how out of touch our lawmakers are from the American people is from Rep. George Miller who said “This is a great day for America’s middle class." Does he not realize that most middle class workers don't make minimum wage, and that the middle class is going to be the people who are screwed hardest by the associated inflation that will come with a minimum wage increase?

Yes, but if it's only 4% of the workforce, the inflation won't be that bad, will it?

[impala454]

yeah but now everyone who made $7.25 is now minimum wage (and pissed). the restaurant industry will prob have the worst impacts. it'll now cost you $3 for a coke at friggin chilis.

[JRockTTU]

Yes, but if it's only 4% of the workforce, the inflation won't be that bad, will it?

Like impala said, I think it will cause people who did make more than minimum wage, but will then be making minimum wage, get paid more. I'm no economist, though.

[Dogmeat]

democrats scraping the bottom of the barrel for votes? nah....

[Psykopath]

democrats scraping the bottom of the barrel for votes? nah....

I know, huh.

You'll NEVER see a Republican do that, no sir-ee bob.

[zetec]

time and time again studies have shown that an increase in minimum wage does not raise inflation or the cost of living. I believe in NM (I think it was NM, don't quote me) the minimum wage is damn near or over $10/hr, and several studies were done concluding that there were no economic repurcussions other than lowering unemployment and overall increases in happytimeness.

[The Fanatic]

Pay raise!


Still making slave wages....

[jwttu]

I still think minimum wage should be a states issue.

[griseyeux]

I want money.

I don't think I'll get a raise, though because I make 6.00/hr. I think the raise only comes for those making 5.15/hr

[JRockTTU]

time and time again studies have shown that an increase in minimum wage does not raise inflation or the cost of living. I believe in NM (I think it was NM, don't quote me) the minimum wage is damn near or over $10/hr, and several studies were done concluding that there were no economic repurcussions other than lowering unemployment and overall increases in happytimeness.

Links to studies?

[Spectatrix]

time and time again studies have shown that an increase in minimum wage does not raise inflation or the cost of living. I believe in NM (I think it was NM, don't quote me) the minimum wage is damn near or over $10/hr, and several studies were done concluding that there were no economic repurcussions other than lowering unemployment and overall increases in happytimeness.

Santa Fe has a $9.50 minimum wage, but the state as a whole is at $5.15.

I still think minimum wage should be a states issue.

Ditto.

I want money.

I don't think I'll get a raise, though because I make 6.00/hr. I think the raise only comes for those making 5.15/hr

Your wage will be at or above the minimum. The minimum is going up in 70-cent increments, so your wage will definitely go up for the second of those.

Links to studies?

I second this request.

[zetec]

http://www.epinet.org/Issuebriefs/ib149/ib149.pdf
http://www.epinet.org/briefingpapers/151/bp151.pdf
http://www.eoionline.org/MinimumWage/MW-Re...8.htm#Issue%209

and of course, there's allways a quick google search:
http://www.google.com/search?ie=UTF-8&...cause+inflation

Doesn't cause job loss either.
Same links.

[chook]

only one on inflation causing. I agree that energy affects it much more, but it would affect it somewhat, more buying power and its a sudden 5% shift.

[James]

How could anyone argue with a straight face that minimum wage is not a causation of inflation??? Common sense tells you that if Farmer Bob was making $1 per pound of grain (just an example) before an increase in minimum wage, he's going to charge more after because he wants to stay in the same relative income bracket. But then everyone's going to have to pay more for their breads, so now they increase charges for services rendered and it just has a snowball effect.

That doesn't even include all the people making above the current minimum wage but below the new minimum wage that are going to require pay raises above the new minimum wage or suffer a blow to their morale.

Quit fucking with minimum wage! I wonder if ditching the idea of minimum wage and instead implementing an idea of minimum frequency and magnitude of pay raise would be better. The idea being that the longer time in employment, the more you earn, as it should be. This would probably lead to higher turnover rates though to keep wages low. Yeah, bad idea.

[pebkac]

How could anyone argue with a straight face that minimum wage is not a causation of inflation??? Common sense tells you that if Farmer Bob was making $1 per pound of grain (just an example) before an increase in minimum wage, he's going to charge more after because he wants to stay in the same relative income bracket. But then everyone's going to have to pay more for their breads, so now they increase charges for services rendered and it just has a snowball effect.

That doesn't even include all the people making above the current minimum wage but below the new minimum wage that are going to require pay raises above the new minimum wage or suffer a blow to their morale.

Quit fucking with minimum wage! I wonder if ditching the idea of minimum wage and instead implementing an idea of minimum frequency and magnitude of pay raise would be better. The idea being that the longer time in employment, the more you earn, as it should be. This would probably lead to higher turnover rates though to keep wages low. Yeah, bad idea.

Of course with a wage increase, that means there's more purchasing power to offset inflation.

[James]

Minimum wage offsets the inflation.

BZZZZZT! Wrong answer.

Inflation offsets the minimum wage.

Take care to notice the difference in the two statements.

K. I'm done with this thread. Nothing that can be done about it now. It's already been signed.

[Dogmeat]

I know, huh.

You'll NEVER see a Republican do that, no sir-ee bob.

yeah you see them doing it they just fail miserably at it cuz everyone knows only uppity rich white folks vote republican

[Dogmeat]

Of course with a wage increase, that means there's more purchasing power to offset inflation.

if only %4 of the work force in the US was actually making minimum, as somone else stated (somone else check the validity of this) then I'm willing to make the argument that the increase will go directly to illegal narcotic sales as opposed t osomething that supports the national economy.

[JRockTTU]

http://www.epinet.org/Issuebriefs/ib149/ib149.pdf
http://www.epinet.org/briefingpapers/151/bp151.pdf
http://www.eoionline.org/MinimumWage/MW-Re...8.htm#Issue%209

and of course, there's allways a quick google search:
http://www.google.com/search?ie=UTF-8&...cause+inflation

Doesn't cause job loss either.
Same links.

I just skimmed over all of your links and do not see evidence in them saying that Minimum wage increase doesn't increase inflation or cost of living. The first link on your google search has a somewhat wishy-washy answer to the question

http://www.wisegeek.com/does-raising-the-m...e-inflation.htm

It is not always easy to obtain objective information when it comes to a politically charged issue such as raising the federal minimum wage. Proponents and critics alike tend to bolster their positions by publishing the opinions of economists who share their political bent. Does raising the minimum wage have a measurable effect on the rest of the economy, including the issue of inflation? Yes. Can a rise in the inflation rate be attributed directly to a rise in the minimum wage? Not necessarily. Both sides of the federal minimum wage debate do present persuasive arguments, but these arguments may be based on skewed or purely theoretical assumptions.

There is a relationship between setting the new minimum wage and inflation, but it's more of a cart before the horse situation. Many proponents of a raised federal minimum wage support the idea of matching the new base wage to the current rate of inflation, a process known as indexing. By indexing the minimum wage to the inflation rate, proponents believe the wage-earner's real spending power will also be increased. When a minimum wage hike does not keep up with inflation, which has been the case in recent years, the workers' paychecks may get a little larger but inflated prices of goods and services actually reduce the spending power of that raise.

So we know that inflation can have a detrimental effect on the real spending power of a raised minimum wage, but does a raised minimum wage cause inflation? Yes and no. From an economic standpoint, inflation can be caused by any number of new or increased costs of production, including an increase in workers' wages. If a company must increase the minimum wage of its workers by several dollars, there is obviously a new expense that must either be absorbed by the company as the cost of using human labor or passed on to customers in the form of higher prices.

Economists call this phenomenon cost-push inflation. An increase in the federal minimum wage did create an increase in production costs, which subsequently resulted in an inflated price for consumers. But critics of the cost-push inflation argument suggest that companies can always adjust their workforce to compensate for a mandated minimum wage increase. It isn't always necessary for companies to push the expenses of a higher-paid workforce onto consumers. Raising the minimum wage can create a temporary or artificial bump in the inflation rate, but so can increases in corporate taxes or a shortage of raw materials.

In short, many proponents of a raise in the federal minimum wage ascribe to the philosophy that a rising tide lifts all boats. Whenever minimum wage workers receive a boost in their take-home pay, higher-paid workers also tend to receive similar pay hikes. The rate of inflation is influenced by so many economic factors that blaming one element such as a raise in the minimum wage appears to be very short-sighted.

Much like James said, if a business selling Widgets sells 100 widgets a week for $1 each then we'll say they make $100 a week. All fixed costs are $20 a week and their only employee, Zetec, makes $1 an hour working 40 hours a week. After all is said and done, they make a $40 profit a week on their Widgets. Joe Congressman raises Zetec's minimum wage requirement to $1.50 an hour. That means instead of taking home $40 a week, Zetec will take home $60 a week, and cuts the Widget company's profits in half, down to $20. Johnny Stockholder doesn't like the idea of the company he's invested in making half of the profit they used to because they have to pay Zetec more money, so they're going to raise the cost of Widgets to $1.50 or $2.00 each. Then you've got JRock who buys a whole lot of Widgets, he likes them a lot. JRock is on salary, doesn't get paid phat, but doesn't get paid anywhere close to minimum wage. He uses his disposable income to buy Widgets, but when the minimum wage was increased JRock's employers didn't give him an increase. With the price of Widgets going up, he doesn't have the disposable income to spend twice as much on Widgets, so that's something he won't buy anymore. The price of widgets has gone up (inflation) to pay Zetec's wages, and since the middle class didn't get the same raise, they suffer because goods will cost more and they don't get paid more.

That's just the way I see it.

[Dogmeat]

I just skimmed over all of your links and do not see evidence in them saying that Minimum wage increase doesn't increase inflation or cost of living. The first link on your google search has a somewhat wishy-washy answer to the question

http://www.wisegeek.com/does-raising-the-m...e-inflation.htm
Much like James said, if a business selling Widgets sells 100 widgets a week for $1 each then we'll say they make $100 a week. All fixed costs are $20 a week and their only employee, Zetec, makes $1 an hour working 40 hours a week. After all is said and done, they make a $40 profit a week on their Widgets. Joe Congressman raises Zetec's minimum wage requirement to $1.50 an hour. That means instead of taking home $40 a week, Zetec will take home $60 a week, and cuts the Widget company's profits in half, down to $20. Johnny Stockholder doesn't like the idea of the company he's invested in making half of the profit they used to because they have to pay Zetec more money, so they're going to raise the cost of Widgets to $1.50 or $2.00 each. Then you've got JRock who buys a whole lot of Widgets, he likes them a lot. JRock is on salary, doesn't get paid phat, but doesn't get paid anywhere close to minimum wage. He uses his disposable income to buy Widgets, but when the minimum wage was increased JRock's employers didn't give him an increase. With the price of Widgets going up, he doesn't have the disposable income to spend twice as much on Widgets, so that's something he won't buy anymore. The price of widgets has gone up (inflation) to pay Zetec's wages, and since the middle class didn't get the same raise, they suffer because goods will cost more and they don't get paid more.

That's just the way I see it.

that's an excellent description I think ...

Can anyone find a confirmation on that "%4" number ....? Somone stated earlier here that only %4 of the US work force makes minimum wage..... I'd like to see where that came from.

[Psykopath]

Since we've given the Iraq War 5 years to ...well, "work," how about we give the minimum wage increase 5 years before we bitch?

OH WAIT, forgot...unamerican to block free speech...as long as said free speech supports a certain point of view.

Got it.

[zetec]

whatever, I gave you guys the tools to find out for yourself and you're still stuck believing whatever you want. Go ask any economics or polisci major or teacher. They'll tell you the same thing.

Also, google the ripple effect, etc.

I really don't care to prove my point anymore than I already have.

[JRockTTU]

Since we've given the Iraq War 5 years to ...well, "work," how about we give the minimum wage increase 5 years before we bitch?

OH WAIT, forgot...unamerican to block free speech...as long as said free speech supports a certain point of view.

Got it.

What does that have to do with anything? Stop being a bleeding heart liberal.

[JRockTTU]

whatever, I gave you guys the tools to find out for yourself and you're still stuck believing whatever you want. Go ask any economics or polisci major or teacher. They'll tell you the same thing.

Also, google the ripple effect, etc.

I really don't care to prove my point anymore than I already have.

by "prove" you mean link some sites and articles that don't mention or prove your original point?

[griseyeux]

LOUD NOISES!!!!!

[Psykopath]

What does that have to do with anything? Stop being a bleeding heart liberal.

Sweet. Got the reaction I was looking for.


Stop being a lying, money-grubbing conservative...?

So many insults to tie in with neo-conservatism it's hard to pick the best ones!

[JRockTTU]

Sweet. Got the reaction I was looking for.
Stop being a lying, money-grubbing conservative...?

So many insults to tie in with neo-conservatism it's hard to pick the best ones!

That's the reaction you're going to get when you go into a thread about minimum wage and start talking about the war in Iraq. Nobody here (with the exception of maybe Impala) is a neo-conservative. I called you a bleeding heart liberal because that's obviously what you are, you go into every single NPR thread and just start whining about the war in Iraq and how greedy conservatives are even when it doesn't have to do with the subject of the thread or the flow of conversation.

By the way, "lying and money-grubbing" describes politicians, not conservatives.

[impala454]

college students always bitch about the minimum wage... nobody cares about the extra $30/month you'll bring home from your part time job.

[Spectatrix]

I don't care either way, really. I support abolishing the minimum wage, but I know that any effects (positive or negative) from raising the minimum wage are going to be short-term anyway. Inflation will go up a bit, unemployment rates will fluctuate a bit, but all that will settle back down to our status quo.

By the way, that 4% statistic is bunk. It's actually lower. From the US Bureau of Labor Statistics: http://www.bls.gov/cps/cpsaat44.pdf

2.2% of hourly workers 16 and older make minimum wage
And only 1.4% of hourly workers 25 and older make minimum wage

[Psykopath]

That's the reaction you're going to get when you go into a thread about minimum wage and start talking about the war in Iraq. Nobody here (with the exception of maybe Impala) is a neo-conservative. I called you a bleeding heart liberal because that's obviously what you are, you go into every single NPR thread and just start whining about the war in Iraq and how greedy conservatives are even when it doesn't have to do with the subject of the thread or the flow of conversation.

Glad you've got me so pinned in every facet of my life from what I say on the internet...
just wow.
Just like Spec, I'm about 50/50 on my voting with some independents and libertarians tossed into the mix every now and again...but not even said voting habits can fully indicate a person's political leanings, again, over the internet.

Have fun in your silly little bubble, sweet-cheeks.

By the way, "lying and money-grubbing" describes politicians, not conservatives.

touche'

[impala454]

Glad you've got me so pinned in every facet of my life from what I say on the internet...

you do the same thing to me

[Psykopath]

you do the same thing to me

I know. It's an endless cycle, really.

But I think you know the deal (that I'm not really attacking "you," persay, and that I'm mostly just egging on the argument).

[impala454]

yeap

[Junsui]

Glad you've got me so pinned in every facet of my life from what I say on the internet...

...but not even said voting habits can fully indicate a person's political leanings, again, over the internet.

I'm confused. Are you saying he knows every facet of your life from what you said or your political leanings?

[JRockTTU]

Glad you've got me so pinned in every facet of my life from what I say on the internet...
just wow.
Just like Spec, I'm about 50/50 on my voting with some independents and libertarians tossed into the mix every now and again...but not even said voting habits can fully indicate a person's political leanings, again, over the internet.

Have fun in your silly little bubble, sweet-cheeks.
touche'

I never said I had you pinned down in every facet of your life. I commented on your postings on the internet....which I pinned you down on from your postings on the internet. I'm calling bullshit on the 50/50 thing.

I had to delete my post because the quoting wasn't working, but I basically found a shitload of quotes from you in NPR in the last 90 days that insult george bush, republicans, and right wing thought. I could not find any that insulted any other political views. Maybe you just post with one side of your brain?

[Psykopath]

I never said I had you pinned down in every facet of your life. I commented on your postings on the internet....which I pinned you down on from your postings on the internet. I'm calling bullshit on the 50/50 thing.

I had to delete my post because the quoting wasn't working, but I basically found a shitload of quotes from you in NPR in the last 90 days that insult george bush, republicans, and right wing thought. I could not find any that insulted any other political views. Maybe you just post with one side of your brain?

Or maybe I just post to piss off certain members on this board that respond to it so easily?

And that's cool, you can call BS on that if you'd like. But if you would have ever met me in real life then you'd know I'm strongly against straight-party tickets, voter apathy, things like that. Which means I analyze every candidate's credentials, qualifications, and issue stances and then base my choice off that research.

The last several elections I've found myself picking, like I said originally, a mix of party candidates (about 50/50 with some Ind. and Libertarians).
But you don't have to believe me. I know you never will, because you base everything you know about my political leanings off my posts on an internet message forum.

Again, have fun in that bubble. Hope there's enough oxygen for you.

[JRockTTU]

Or maybe I just post to piss off certain members on this board that respond to it so easily?

And that's cool, you can call BS on that if you'd like. But if you would have ever met me in real life then you'd know I'm strongly against straight-party tickets, voter apathy, things like that. Which means I analyze every candidate's credentials, qualifications, and issue stances and then base my choice off that research.

The last several elections I've found myself picking, like I said originally, a mix of party candidates (about 50/50 with some Ind. and Libertarians).
But you don't have to believe me. I know you never will, because you base everything you know about my political leanings off my posts on an internet message forum.

Again, have fun in that bubble. Hope there's enough oxygen for you.

You got me there. I thought the whole point of the NPR forum was to discuss your views on politics, news, and religion. I've been doing the wrong thing by arguing what I believe in instead of selling out my beliefs just to try and bait people into responding to me. You are the winner of the internet.

[Psykopath]

You got me there. I thought the whole point of the NPR forum was to discuss your views on politics, news, and religion. I've been doing the wrong thing by arguing what I believe in instead of selling out my beliefs just to try and bait people into responding to me. You are the winner of the internet.

Awesome.


Yeah, I'm liberal on many points, and conservative on several others as well.
I just don't like people trying to peg me as solidly one or the other. Politics are never a black and white issue.
That's the whole thing that was irking me, understand? Just because I support rational 2nd amendment policy doesn't make me a solid conservative, same as my support for logical environmental policy doesn't make me a solid liberal.

[FORSAKENR320]

Awesome.
Yeah, I'm liberal on many points, and conservative on several others as well.
I just don't like people trying to peg me as solidly one or the other. Politics are never a black and white issue.
That's the whole thing that was irking me, understand? Just because I support rational 2nd amendment policy doesn't make me a solid conservative, same as my support for logical environmental policy doesn't make me a solid liberal.

you're still a tofu and wheat germ eating hippy

[Psykopath]

you're still a tofu and wheat germ eating hippy

Never had wheat germ, but tofu is good if cooked right.


Doesn't beat a steak though, obviously.










Now, back to Hot Topic with you!

[Dogmeat]

Now, back to Hot Topic with you!

[FORSAKENR320]

[chook]

LOUD NOISES!!!!!

after a long day of work, this made me giggle