$7.25 an hour is not a living wage

[Teh One Who Knocks]

By Richard Trumpka and Christine Owens - Special to CNN


http://i.imgur.com/ysule1R.jpg

Editor's note: Richard Trumka is president of the AFL-CIO. Christine Owens is executive director of the National Employment Law Project, an advocacy group for lower-wage workers.

(CNN) -- For the first time since the Great Depression, the U.S. Census Bureau tells us, middle-class family incomes have lost ground for more than a decade.

The sad truth is that the rewards for productivity and hard work such as health care coverage, retirement security, opportunity -- rewards that used to make America's workers "middle class" -- are on the rocks.

All the wage increases over the past 15 years have gone to the wealthiest 10%, according to the Economic Policy Institute. All of them. And almost all, 95%, of the income gains from 2009 to 2012, the first three years of recovery from the Great Recession, went to the very richest 1%.

Something else has happened, too. The bottom has fallen out of America's wage floor. And the erosion of the minimum wage has lowered pay and working standards for all of us.

An increase in the minimum wage -- which hasn't risen since 2009 -- is long overdue. If the minimum wage had just kept pace with inflation since 1968, it would be $10.77 an hour today instead of $7.25. For tipped workers, the rate's been stuck at a scandalous $2.13 for 20 years.

Congress is considering a proposal, called the Fair Minimum Wage Act, from Sen. Tom Harkin of Iowa and Rep. George Miller of California, supported by President Barack Obama. The act would raise the minimum wage over two years to $10.10 an hour and let it grow with inflation.

The Senate is expected to consider the proposal the week after Thanksgiving.

If the minimum wage had kept up with the growth of workers' productivity, it would be $18.67. And if it had matched the wage growth of the wealthiest 1%, it would be more than $28.

The share of workers in "good jobs" -- paying more than $37,000 a year and providing health care and retirement benefits -- has fallen, even though workers' average age and education level have grown. And today, most job growth -- and six in 10 jobs expected to be added over the next decade -- are in low-wage fields.

A raise in the minimum wage would give 30 million workers a little more money to pay for rent, food and other needs. But from other quarters, a different suggestion is on the table.

Publishing executive Steve Forbes, in a column appearing in the November 18 print edition of Forbes magazine, recommends that congressional Republicans go on offense about the minimum wage. He casts the issue as a partisan attempt to "put the GOP in the worst possible light" and advises a spin campaign to defeat a minimum wage increase.

Fortunately for America's working people, the public has a less cynical view.

A recent national survey conducted for the National Employment Law Project by Hart Research Associates finds that 80% of the public -- including 62% of Republicans -- support a minimum wage increase. Just 25% think that raising America's wage floor would cost jobs, a view that's also falling out of favor with economists. Raising the minimum wage does not result in job losses, respected academic research shows, even during bad economic times.

Ironically, Forbes' own magazine in July interviewed Carman Iverson, a 28-year-old minimum-wage McDonald's worker in Kansas City, Missouri, who has four children. The article detailed the utter impossibility of making ends meet on the wage, especially in an industry that limits workers' hours:

Iverson said she started working in 2012 at $7.25 an hour, and makes $7.35 an hour now after Missouri adjusted the minimum wage. She makes between $400 and $600 a month. Her rent is $650 a month.

When asked how she could pay her rent on those wages, she said she had a landlord who works with her. "I'm kind of on my last little leg, because I've been late on rent. I'm actually behind three months in rent.

"Sometimes I can pay it, sometimes I can't. I get paid twice a month, and both checks go to rent and the rest of it goes to utilities to the point where I don't have any money left to buy anything for my kids -- to buy them clothes, shoes or anything they need."

She said she manages to feed her four children on $543 worth of food stamps a month.

There's a lot Congress could do for Iverson and other low-wage workers to stop the erosion of wages and working standards for America's hard-working families -- from ending the job-killing budget cuts of the sequester to investing in the creation of good jobs.

But one choice is clear and easy and can make a difference right now: Raise the minimum wage, including the outrageous rate for tipped workers, and index it to inflation. Let's not allow America's lowest-wage workers to keep on falling further behind.

[Teh One Who Knocks]

It's not supposed to be a living wage :|

[PorkChopSandwiches]

Its not, but when you see the profits walmart brings in, it seems they could pay a bit better.

[Pony]

Its not, but when you see the profits walmart brings in, it seems they could pay a bit better.

They would just raise the prices on everything in the store, keeping everyone just as broke as they are now. no way they would pay raises out of their profits.

[Teh One Who Knocks]

Its not, but when you see the profits walmart brings in, it seems they could pay a bit better.

It's not Walmart's responsibility to pay $15/hour or more....98% of the jobs at Walmart are unskilled labor jobs, they are only worth so much.

[PorkChopSandwiches]

Understandable, but they turned a profit of 15.7 billion last year. I mean c'mon

[Muddy]

Understandable, but they turned a profit of 15.7 billion last year. I mean c'mon

Exactly.. The gap widens..

I like the way Ben and Jerry did it.. It was calledthe 20:1 theory or something.. They said they will never make more than 20 times the lowest paid worker in the organization..

[Hal-9000]

Its not, but when you see the profits walmart brings in, it seems they could pay a bit better.


this....I saw an article listing 10 retail items and what they typically cost the store. The mark up is well over 500% on an item that is listed for under 20 dollars...

stores were Walmart, Target, Sears

[Teh One Who Knocks]

Understandable, but they turned a profit of 15.7 billion last year. I mean c'mon


Exactly.. The gap widens..

I like the way Ben and Jerry did it.. It was calledthe 20:1 theory or something.. They said they will never make more than 20 times the lowest paid worker in the organization..

Then quit and go work somewhere else :dunno:

Or start your own business and pay everyone $30/hour.

[PorkChopSandwiches]

Exactly.. The gap widens..

I like the way Ben and Jerry did it.. It was called the 20:1 theory or something.. They said they will never make more than 20 times the lowest paid worker in the organization..

Yeah in Switzerland they are trying to impose a 12:1 law.

http://www.huffingtonpost.com/2013/11/24/executive-pay-switzerland-proposal_n_4333376.html

[PorkChopSandwiches]

Then quit and go work somewhere else :dunno:

Or start your own business and pay everyone $30/hour.

My point is at some point people are making SOOOOO much money that they should share the wealth. :socialist:

[Muddy]

Then quit and go work somewhere else :dunno:

Or start your own business and pay everyone $30/hour.

No one at my work makes minimum wage. And when the year is done some profits are given back to the non-commissioned employees.. The owner of my company is a millionaire and he made it here, but he also is a firm believer in giving everyone a stake in the company.. He attributes that to our success.. Everyone has a vested interest for us to succeed. Very admirable in my book.

Now Wal-mart on the other hand... blech. Whore jobs out to the cheapest bidder so you can amass an empiracle amount of money that isnt even comprehensible. 15.7 billion PROFIT.. Meaning after all the salaries were paid to upper management and owners alike.. Fuck man, people are starving in the streets because they cant get ahead... Not because they are lazy... Because their employers have a fucking blood lust for more more more money..

[PorkChopSandwiches]

http://i.imgur.com/9l3l5IK.png

[Teh One Who Knocks]

My point is at some point people are making SOOOOO much money that they should share the wealth. :socialist:


No one at my work makes minimum wage. And when the year is done some profits are given back to the non-commissioned employees.. The owner of my company is a millionaire and he made it here, but he also is a firm believer in giving everyone a stake in the company.. He attributes that to our success.. Everyone has a vested interest for us to succeed. Very admirable in my book.

Now Wal-mart on the other hand... blech. Whore jobs out to the cheapest bidder so you can amass an empiracle amount of money that isnt even comprehensible. 15.7 billion PROFIT.. Meaning after all the salaries were paid to upper management and owners alike.. Fuck man, people are starving in the streets because they cant get ahead... Not because they are lazy... Because their employers have a fucking blood lust for more more more money..

Sounds like you guys need to move to China or North Korea, I understand those places are workers paradise :)

[Muddy]

Im not saying people cant become millionaires or even billionaires.. But god damn.. Give me break! Pay your fuckin people!

[Teh One Who Knocks]

Im not saying people cant become millionaires or even billionaires.. But god damn.. Give me break! Pay your fuckin people!

Last time I checked, nobody is forcing these people to work at Walmart. If you are unskilled and/or uneducated, you don't deserve to make $75K a year, I'm sorry, but that's just the way it is. As a matter of fact, if some McDonald's cashier was getting paid $18/hour to push buttons with pictures on them on a cash register, I'd be rather pissed because then if that was the case, I should be making $40/hour because I actually educated myself and learned a usable trade.

Maybe in some Shangri-La we can all sit around and sing kumbaya and toast marshmallows, but unfortunately, this is reality.

[Muddy]

Last time I checked, nobody is forcing these people to work at Walmart. If you are unskilled and/or uneducated, you don't deserve to make $75K a year, I'm sorry, but that's just the way it is. As a matter of fact, if some McDonald's cashier was getting paid $18/hour to push buttons with pictures on them on a cash register, I'd be rather pissed because then if that was the case, I should be making $40/hour because I actually educated myself and learned a usable trade.

Maybe in some Shangri-La we can all sit around and sing kumbaya and toast marshmallows, but unfortunately, this is reality.

Im sorry dude but $18 an hour is far from $75k a year.. It's 37k.. and that is small potatoes based and well below on what middle America makes. I dont think anyone realistically is expecting that. We have got to keep minimum wage on pace with inflation.. If we cant then don't bitch about everyone living off the govt. tit because they have NO choice.. Not everyone can go to college and work in the 75k world.. In a decent persons mind I think it's common sense that as profits raise so do your responsibilities to your employees. If I make 1,000,000 I can expect for 100,00 to roll down hill... If I make 100,000,000 I expect 10,000,000 to roll down.. People are just blinded by greed.. And that's the real problem.

[PorkChopSandwiches]

Agreed, and most companies wont tale the high road as in the Ben and Jerry position you mentioned.

[Teh One Who Knocks]

Yes, because everyone deserves everything for nothing :cheers:

I can't wait for the day that a Happy Meal at McD's costs $47

[Teh One Who Knocks]

Im sorry dude but $18 an hour is far from $75k a year.. It's 37k.. and that is small potatoes based and well below on what middle America makes. I dont think anyone realistically is expecting that. We have got to keep minimum wage on pace with inflation.. If we cant then don't bitch about everyone living off the govt. tit because they have NO choice.. Not everyone can go to college and work in the 75k world.. In a decent persons mind I think it's common sense that as profits raise so do your responsibilities to your employees. If I make 1,000,000 I can expect for 100,00 to roll down hill... If I make 100,000,000 I expect 10,000,000 to roll down.. People are just blinded by greed.. And that's the real problem.

And FYI, I did not go to college and I make VERY good money, so don't play the Boo Hoo can't afford college BS.

[Muddy]

Yes, because everyone deserves everything for nothing :cheers:

I can't wait for the day that a Happy Meal at McD's costs $47

That would be 11 times what it normally costs.. Are you saying Min. wage should be $80 an hour?

[Muddy]

And FYI, I did not go to college and I make VERY good money, so don't play the Boo Hoo can't afford college BS.

I dint go to college either and I wasn't boo hooing about being able to afford college.. That wasn't my point. We just have to agree to disagree on this one I think..

[Teh One Who Knocks]

That would be 11 times what it normally costs.. Are you saying Min. wage should be $80 an hour?

Sure....why stop at that though? Make it $150/hour and a free 12 bedroom home and 6 cars for everyone since we're just giving shit to people that they don't deserve.

[Teh One Who Knocks]

I dint go to college either and I wasn't boo hooing about being able to afford college.. That wasn't my point. We just have to agree to disagree on this one I think..

:agreed:

[PorkChopSandwiches]

Yes, because everyone deserves everything for nothing :cheers:

I can't wait for the day that a Happy Meal at McD's costs $47

You are paying for these workers anyway, while the BIG WIGS get to take home millions


McDonald's announced Monday that it raked in $1.5 billion in profits in the third quarter, up 5 percent from last year.

The number is strikingly close to the $1.2 billion taxpayers are shelling out each year to help pay public assistance to the McDonald's workforce, according to a report released last week by the National Employment Law Project.


http://i.imgur.com/m1x2Lk6.png

Wouldn't you prefer the company supported its workers, instead of you?

[Muddy]

You are paying for these workers anyway, while the BIG WIGS get to take home millions


http://i.imgur.com/m1x2Lk6.png

Wouldn't you prefer the company supported its workers, instead of you?

That is powerful data.. These low wage employees are making $15.00 an hour..

Mcdonalds pays $7.50

American taxpayers pays $7.50 through social assistance..

I'm with you Porky.. If want to have an employee YOU fucking support them... Not me..

[PorkChopSandwiches]

While the CEO make 13 million plus a year, we (the taxpayer) split the labor cost

[Hal-9000]

that's what I think is the underlying comment here...

it's not about training/college etc, it's about the large corporation making billions and paying their employees peanuts.....our company is an excellent example of this

certain roles in management make 6 figures, ours sales force make high 5 figures, CSR's make about 40k/yr and the production staff, bindery, warehousing make less than poverty line per year...we have a real disparity between yearly profits and who gets them...considering that the 3 low end jobs I listed comprise over 65% of our company workforce

[Muddy]

that's what I think is the underlying comment here...

it's not about training/college etc, it's about the large corporation making billions and paying their employees peanuts.....our company is an excellent example of this

certain roles in management make 6 figures, ours sales force make high 5 figures, CSR's make about 40k/yr and the production staff, bindery, warehousing make less than poverty line per year...we have a real disparity between yearly profits and who gets them...considering that the 3 low end jobs I listed comprise over 65% of our company workforce

They can get away with low wages because the tax payers will make up the difference in the crap pay they so generously dole out to their employees. i.e free cellphones, food stamps, soon to be healthcare here.. It's a fucking scam man. A huge corporate scam so a few big boys on top can break the bank..

[PorkChopSandwiches]

Exactly what Im getting at

[Hal-9000]

aye...it all comes together now :thumbsup:

[Pony]

I 100% agree about the few at the top should not be breaking the bank. I just don't think raising the Min wage is going to do anything to change it. If the Govt forces companies to pay the workers more do you really thing the CEO is going to give up part of his billions in wages or any of the company profit margin out of the goodness of his heart?

[PorkChopSandwiches]

I 100% agree about the few at the top should not be breaking the bank. I just don't think raising the Min wage is going to do anything to change it. If the Govt forces companies to pay the workers more do you really thing the CEO is going to give up part of his billions in wages or any of the company profit margin out of the goodness of his heart?

Are you fine with subsidizing these people with your tax dollars so the CEO's can rake it in?

[Hal-9000]

I 100% agree about the few at the top should not be breaking the bank. I just don't think raising the Min wage is going to do anything to change it. If the Govt forces companies to pay the workers more do you really thing the CEO is going to give up part of his billions in wages or any of the company profit margin out of the goodness of his heart?

My friend works at a company similar to Muddy's...owner gives back at the end of the year and explains in detail where profits were made. Apparently the guy was making average money until the disclosure/profit sharing was introduced, then he started making more money yearly...disclosed that as well.

and yes, most big wigs won't cut their huge annual salaries for the little guys, but it's nice to hear that it does happen and in my buddy's case, the company became more profitable because of it.

[Pony]

Are you fine with subsidizing these people with your tax dollars so the CEO's can rake it in?

Hell no! but how is raising the min wage going to stop that? Every company will simply raise the prices of goods and services to compensate. The minimum wage workers will be exactly as poor as they are now, the middle and upper class will be more broke and the filthy rich will be exactly the same.

I'm all for finding a solution that limits the excessive wages and profits of the top 1% but raising the minimum wage is not the solution.

[Muddy]

The cost of having an employee has gone up... Either the employer reigns in profits and pays them, or the American taxpayer (you and I) are forced to pay them through Welfare and subsidies. There's your $40 happy meal... You bought it and didnt even get to taste it!!

[RBP]

Apple made $41 billion on 1/3 of the sales. They start their apple store staff at about $9. And oh, by the way, the bulk of their labor expense is in China.

Wal*Mart employs 1.4 million Americans.

I don't know why Wal*Mart is a pariah for making the same business decisions as every other large retailer. It's beyond me.

Now should the minimum wage be higher? Probably, incrementally... it has to change at some point.



Exxon Mobile made $45 Billion. But our representatives would rather go after Wal*Mart than prevent us from getting ass fucked at the pump.

[Hal-9000]

the gas and oil bother me....I worked at Home Oil 1985/86 and learned quiet a bit about one of Canada's largest exports/resources...


like we do all of the exploration, drilling, refining and still get charged some of the highest prices in the world for the commodity :meh:

[PorkChopSandwiches]

Apple made $41 billion on 1/3 of the sales. They start their apple store staff at about $9. And oh, by the way, the bulk of their labor expense is in China.

Wal*Mart employs 1.4 million Americans.

I don't know why Wal*Mart is a pariah for making the same business decisions as every other large retailer. It's beyond me.

Now should the minimum wage be higher? Probably, incrementally... it has to change at some point.



Exxon Mobile made $45 Billion. But our representatives would rather go after Wal*Mart than prevent us from getting ass fucked at the pump.
I went with them as an example but it goes for all these powerhouses

[deebakes]

:obama:

[FBD]

to start,

I stopped reading as soon as I saw Trumka's name.

But I read what you guys wrote, because I give a shit what you guys think, not what this fat cat who tries to make himself out to be for the little guy thinks.

Fact of the matter is, $7.50 would be a plenty decent wage were it not for 100 years of federal reserve fuckery and a make the laws up as you go along waste of a goddam government we have. They have distorted all of the information businesses and people use to make their calculations, have stolen 95% of the purchasing power of our money.

Yeah, I walked by my CEO today giving some baffle 'em with bullshit outlook on how good things are going to be...ya know, since they pitch the place more as a financial services agency than an insurance agency these days - I felt like asking him :

"So have you guys done anything whatsoever to limit the impact of what's over the horizon for the market? Anyone who even remotely paid attention to market fundamentals and what went on in 2008 knows that not a damned thing was done to "fix" anything whatsoever, the fundamentals are now much worse, and I really dont care what the talking faces say on TV, because their job depends on their ignorance.

Now how are you enjoying your fucking 15 million dollar bonus from last year, asshole?"