“An Issue People Understand”: What Republicans Don’t Get About The Minimum Wage
Republicans don’t like talking about the minimum wage, which is only natural given that their position is one that is extremely unpopular (raising the minimum to $10.10 an hour, the level advocated by Democrats, regularly polls at 70 percent or more). But while their political problem on the issue stems from their policy stance, the way they do talk about it, when they absolutely have to, makes the problem worse. Witness what New Jersey governor and likely presidential candidate Chris Christie now has to say about it:
“I’m tired of hearing about the minimum wage,” Christie said in a keynote speech at the U.S. Chamber of Commerce. “I really am. I don’t think there’s a mother or a father sitting around the kitchen table tonight in America saying, ‘You know, honey, if our son or daughter could just make a higher minimum wage, my God, all of our dreams would be realized.’ “
“Is that what parents aspire to for our children?” Christie continued, “They aspire to a greater, growing America, where their children have the ability to make much more money and have much great success than they have, and that’s not about a higher minimum wage.”
That is some weird logic. We need to keep the minimum wage low, because everybody wants to make a lot more than minimum wage, and an increase won’t make anyone’s dreams come true. It’s kind of like saying to a hungry person: “I could give you a sandwich, but I know what you’d really love is an eight-course meal at the Four Seasons. So no sandwich.” Or saying to the public: “It would be great if we could magically eliminate 100 percent of crime, but since we can’t, we’re not going to bother to have a police force.”
Christie’s exasperation is no doubt widely shared among Republicans. They just can’t seem to grasp why anyone would care about the minimum wage. No matter how many times you explain to them that it isn’t just teenage kids working their after-school jobs who make it, but people trying to raise families (the Economic Policy Institute estimates that increasing the minimum wage would directly or indirectly give a raise to 27.8 million American workers), that fact just doesn’t register.
I could make a conjecture about the psychological underpinnings of that, which would have something to do with the natural contempt many on the right feel for people who are economically struggling. But let’s look at what Florida governor Rick Scott said in a debate last night:
Q: Do you support the concept of a minimum wage?
Scott: Sure.
Q: What should it be?
Scott: How would I know? The private sector decides wages.
Right, and the point of a minimum wage is that the government is setting the minimum, because we have collectively decided what the minimum should be. Either you think there ought to be a minimum wage, or you think the private sector should decide the minimum. You can’t believe in both.
Wisconsin governor Scott Walker got asked the same question last week. “I’m not going to repeal it,” he said. “But I don’t think it serves a purpose because we’re debating then about what the lowest levels are at. I want people to make, like I said the other night, two or three times that.”
I suppose this is now the standard Republican dodge to questions about the minimum wage — we shouldn’t raise it, because it would be even better if people made more! — and it’s so transparently dumb that even voters can see through it. For her part, Walker’s opponent Mary Burke has been pushing the issue hard ever since Walker ran into trouble on it, and the race is currently close to tied.
There’s no question that Republicans aren’t helped by the simple fact that this is an issue people understand and have clear ideas about, and most voters are at odds with the GOP position. But the Republicans’ scorn for the idea that anyone cares about raising the minimum wage seems particularly misguided, given that the GOP is already widely seen as the party of the rich.
This year there are initiatives to raise the minimum wage on five state ballots, including three — Arkansas, Alaska, and South Dakota — where there are close Senate races. Because the federal minimum wage was last increased in 2009 and its value erodes every year, there has been tremendous momentum to increase it at the state and local level. In 2014 alone, bills to increase the minimum wage have been introduced in 34 states, and increases have been enacted in 10 states plus D.C. Minimum wage initiatives that appear on the ballot almost always win. If nobody cared about what the minimum wage is, that wouldn’t be the case. You’d think by now Republicans would have figured that out.
By: Paul Waldman, Contributing Editor, The American Prospect; The Plum Line, The Washington Post, October 22, 2014
“Bad Politics And Worse Policy”: GOP’s Minimum Wage Disaster; How Chris Christie And Scott Walker Are Stepping In It
Buoyed by surveys showing that voters overwhelmingly support raising the federal minimum wage, Democrats have held Republicans’ feet to the fire this year, pressing GOP candidates and officeholders to take clear stands on the issue. Most have — and they’re overwhelmingly opposed to raising the federal wage above its current level of $7.25 an hour. And as Wisconsin Gov. Scott Walker and New Jersey Gov. Chris Christie attest, it’s exceedingly difficult for Republicans to discuss the issue without sounding both callous and clueless.
Christie’s minimum wage flub came today — during a speech before a well-heeled crowd at the U.S. Chamber of Commerce, no less. “I’m tired of hearing about the minimum wage,” Christie said, according to The Hill. “I really am. I don’t think there’s a mother or a father sitting around the kitchen table tonight in America saying, ‘You know, honey, if our son or daughter could just make a higher minimum wage, my God, all of our dreams would be realized.’”
“Is that what parents aspire to for our children? They aspire to a greater, growing America where their children have the ability to make much more money and have much greater success than they have and that’s not about a higher minimum wage,” Christie added.
Set aside for a moment the fact that a dismal labor market leaves many workers with no choice but to take minimum wage jobs. It’s true, as Christie argues, that most parents aspire to far more for their children. But in a socially stratified America with limited upward mobility, that’s an argument for measures to redistribute wealth and opportunity and to invest in disadvantaged communities with increased education funding, public works projects, and the like. Don’t look for a GOP conservative like Christie to endorse such policies.
Then there’s Walker, who faces a tough reelection battle in Wisconsin against Democrat Mary Burke. Earlier this month, Walker’s administration rebuffed a workers coalition’s effort to raise the state’s minimum wage in accordance with a state law that calls for the minimum to be a “living wage.” The administration responded to their effort by asserting that $7.25 an hour is a living wage — even though MIT calculates that a single parent would need to earn $21.17 an hour to make a living wage in the state capital of Madison. But don’t bother Walker with such figures. The minimum wage, he asserted last week, doesn’t even “serve a purpose,” explaining that he’d rather help Wisconsinites secure higher-paying jobs than the raise the minimum wage. OK, but what about the 500,000 workers in the state who’d see a raise if the minimum wage went from $7.25 to $10.10 an hour?
The GOP, it seems, is functionally incapable of talking about the minimum wage without botching basic facts or seeming downright insensitive. No, minimum wage hikes don’t kill job growth, and no, Joni Ernst, most minimum wage earners aren’t high school students who just need a little “starter wage.” The callousness caucus, though, will hear none of it.
By: Like Brinker, Deputy Politics Editor, Salon, October 22, 2014
“Callous, Dumb Policy”: Scott Walker’s Minimum Wage Argument Is Even Dumber Than You Think
The minimum wage is causing a bit of campaign drama, notably in Wisconsin, as John Nichols reports. Republican Governor Scott Walker, running neck and neck against Democrat Mary Burke, inflamed the debate this week when he rejected complaints that the state’s $7.25 an hour wage floor was too low. “I don’t think it serves a purpose,” Walker said of the labor standard.
One of the most bizarre points in the Walker administration’s argument for why $7.25 is a living wage (it’s not) is that some low-wage workers supplement their earnings with public assistance. It’s true that even many full-time employees in Wisconsin and elsewhere rely on government aid—because their wages are too low. Walker, meanwhile, is no supporter of social programs. If he had his way, there would be an even smaller safety net for workers to fall back on.
Walker isn’t the only candidate digging in his heels against efforts to raise the minimum wage while simultaneously bashing public aid. This isn’t just callous—it’s also dumb policy. There are lots of reasons to raise the minimum wage, like the fact that it will boost the economy and that 80 percent of Americans support it. But one reason in particular should get conservatives’ attention: it will help people get off government aid programs and save the government money.
How many people? About 1.7 million, according to a brief released Thursday by the Economic Policy Institute, which examined the implications for public-assistance enrollment of raising the federal wage floor to $10.10 an hour.
Nearly half of all recipients of government aid work full time, but because lawmakers have let the minimum wage stay low while the cost of living rises, many workers can’t get by on their earnings. The result is that roughly half of all workers making hourly wages below $10.10 rely on public assistance directly or via a member of their family, according to EPI. And about half of all the funds for the six main types of government support—food stamps; the Earned Income Tax Credit; the Low Income Home Energy Assistance Program; Supplemental Nutrition for Women, Infants, and Children; the Section 8 Housing Choice voucher program; and Temporary Assistance for Needy Families—go to people working for less than $10.10 an hour.
Those programs were designed to provide temporary support to people who were down on their luck, noted David Cooper, an economic analyst at EPI and the brief’s author, on a call with reporters. “They were not intended to act as long-term subsidies to employers so businesses could get away with paying poverty-level wages,” he said. As it stands now, the government is essentially giving a $45 billion handout every year to companies that pay less than $10.10 in order to patch the gap between what they pay their employees and what those workers need to survive.
It’s important to note that raising the wage floor wouldn’t justify cuts to the safety net. Even $10.10 is below a living wage in many cities, and there are still an awful lot of people without full-time work. “Given the extraordinarily high rates of poverty and child poverty that persist in the wake of the Great Recession, there is every reason to think that current levels of spending on these programs are woefully inadequate to truly combat poverty and lift living standards for program participants,” Cooper wrote.
But raising wages would free up money that could be used to benefit those who aren’t directly affected by the increase. Cooper estimates that lifting the wage floor to $10.10 would save the government at least $7.6 billion annually—money that could be used to strengthen and expand safety net programs like the Earned Income Tax Credit or be invested in infrastructure projects that create jobs.
By: Zoe Carpenter, The Nation, October 16, 2014
“And There You Have It”: Walker On Minimum Wage; ‘I Don’t Think It Serves A Purpose’
Wisconsin Gov. Scott Walker (R) debated challenger Mary Burke (D) on Friday, and the issue of the minimum wage offered the candidates a chance to highlight their differences. The question posed summarized the situation nicely: can a full-time worker live on $7.25 an hour? And does the state have a responsibility to even set a minimum wage?
Burke “strongly” endorsed a higher legal minimum, but the Republican incumbent largely dodged the question, though he seemed to express opposition to the law itself. “I want jobs that pay two or three times the minimum wage,” Walker said, adding, “The way that you do that is not by an arbitrary level of a state.”
Daniel Bice at the Milwaukee Journal Sentinel followed up on that point in an interview with the governor today, asking Walker whether he believes the law should exist. The governor replied:
“Well, I’m not going to repeal it but I don’t think it’s, I don’t think it serves a purpose. Because we’re debating then about what the lowest levels are at. I want people to make, like I said the other night, two or three times that.”
It’s a striking thing for a governor to say during a tough re-election campaign, especially given his economic record – Walker promised Wisconsin voters four years ago that he’d create 250,000 jobs in his first term, and he’s struggling to get to Election Day with roughly half that total.
Indeed, if the governor doesn’t think the minimum wage “serves a purpose,” it’s not too late for Walker to ask someone to explain the law’s rationale.
Establishing a minimum wage is not about creating a target income for an entire population – it’s about creating a floor so that full-time workers don’t have to live in poverty.
Walker’s comments are rather bewildering. When Democrats created the federal minimum wage – after Henry Ford helped prove its value – the point wasn’t to “debate what the lowest levels” would be for most people, but rather, the law was created as a protection against abuse. Its existence did not prevent U.S. workers from creating the world’s most dynamic middle class.
How an incumbent governor of a Midwestern state can still find this confusing is a bit of a mystery.
For that matter, we can look around the country and see plenty of states doing quite well after raising their minimum wage, which makes sense – when more workers have more money in their pockets, they’ll spend more, which creates more economic activity and more jobs.
It’s one of the reasons a higher minimum wage is so popular with so much of the country.
It’s heartening, I guess, that Scott Walker isn’t pushing for the repeal of the wage law, but the fact that he doesn’t see its “purpose” seems like the sort of thing Wisconsin voters will be hearing again in the campaign’s final three weeks.
By: Steve Benen, The Maddow Blog, October 14, 2014
“More Conservative Demonology”: Countering The Minimum Wage With More Help For “Lucky Duckies”
One of the key contributors and promoters of the “reform conservative” cause (and the new “manifesto” Room to Grow), Ramesh Ponnuru, has a Bloomberg View column making the fairly obvious suggestion about how Republicans might respond to the drive for a higher minimum wage:
One way to do so is to support expanding the earned income tax credit, an earnings subsidy that targets poor households much better than the minimum wage does and poses no threat of destroying jobs. That credit may not be as easily understood as the minimum wage, but it would give Republicans a way to show that they want to help the poor — and that their stated objections to raising the minimum wage are sincere.
He might have added that the EITC used to be a very popular initiative among conservatives, from Ronald Reagan to George W. Bush.
But not any more, as both Jonathan Chait and Ezra Klein quickly pointed out. Here’s Ezra’s brisk summary of the Republican revolt against the EITC:
The most recent Republican budget lets a stimulus-era boost in the EITC to expire and, on top of that, includes huge cuts to the part of the budget (the “income security budget function,” for wonks) that houses the EITC.
But it’s worse than that: the EITC has been largely responsible for eliminating federal income tax liability among low-income Americans. And that has become a deep source of grievance, and even of conspiracy theories, among conservatives at both the elite and grassroots level. The classic slam at the EITC was articulated by the Wall Street Journal editorial board, which got into the habit of referring to poor people who didn’t owe federal income tax as “lucky duckies.” This in turn became integral to the popular conservative theory that people who didn’t pay income taxes didn’t bear the cost of governing (an argument, of course, that ignored all the other kinds of taxes the poor pay, often at regressive rates), and thus represented looters who voted themselves more and more of other people’s money.
I personally became convinced this had become an important part of conservative demonology when watching Rick Perry make his statement of presidential candidacy in 2011, at a RedState gathering in South Carolina. In the midst of an extended tirade about the need for lower taxes, Perry suddenly blasted “the injustice that nearly half of all Americans don’t even pay any income tax.” The crowd responded with what I described at the time as a “feral roar.” So it wasn’t surprising a year or so later when Mitt Romney got caught buying into the same idea in his “47 percent” comments, about “people who pay no income tax” but nonetheless receive federal benefits.
Even if they didn’t rely on EITC cuts to pay for upper-end tax cuts in their budget schemes, Republicans seem to have developed a moral aversion to the EITC that’s more important to them than finding a sensible alternative to minimum wage increases. So Ponnuru is almost certainly barking up the wrong tree.
By: Ed Kilgore, Contributing Writer, Washington Monthly Political Animal, May 23, 2014