“We Need To Be More Ambitious”: Why The Minimum Wage Should Really Be Raised To $15 An Hour
Momentum is building to raise the minimum wage. Several states have already taken action — Connecticut has boosted it to $10.10 by 2017, the Maryland legislature just approved a similar measure, Minnesota lawmakers just reached a deal to hike it to $9.50. A few cities have been more ambitious — Washington, D.C. and its surrounding counties raised it to $11.50, Seattle is considering $15.00
Senate Democrats will soon introduce legislation raising it nationally to $10.10, from the current $7.25 an hour.
All this is fine as far as it goes. But we need to be more ambitious. We should be raising the federal minimum to $15 an hour.
Here are seven reasons why:
1. Had the minimum wage of 1968 simply stayed even with inflation, it would be more than $10 an hour today. But the typical worker is also about twice as productive as then. Some of those productivity gains should go to workers at the bottom.
2. $10.10 isn’t enough to lift all workers and their families out of poverty. Most low-wage workers aren’t young teenagers; they’re major breadwinners for their families, and many are women. And they and their families need a higher minimum.
3. For this reason, a $10.10 minimum would also still require the rest of us to pay Medicaid, food-stamps, and other programs necessary to get poor families out of poverty — thereby indirectly subsidizing employers who refuse to pay more. Bloomberg View describes McDonalds and Walmart as “America’s biggest welfare queens” because their employees receive so much public assistance. (Some, like McDonalds, even advise their employees to use public programs because their pay is so low.)
4. A $15/hour minimum won’t result in major job losses because it would put money in the pockets of millions of low-wage workers who will spend it — thereby giving working families and the overall economy a boost, and creating jobs. (When I was Labor Secretary in 1996 and we raised the minimum wage, business predicted millions of job losses; in fact, we had more job gains over the next four years than in any comparable period in American history.)
5. A $15/hour minimum is unlikely to result in higher prices because most businesses directly affected by it are in intense competition for consumers, and will take the raise out of profits rather than raise their prices. But because the higher minimum will also attract more workers into the job market, employers will have more choice of whom to hire, and thereby have more reliable employees — resulting in lower turnover costs and higher productivity.
6. Since Republicans will push Democrats to go even lower than $10.10, it’s doubly important to be clear about what’s right in the first place. Democrats should be going for a higher minimum rather than listening to Republican demands for a smaller one.
7. At a time in our history when 95 percent of all economic gains are going to the top 1 percent, raising the minimum wage to $15 an hour isn’t just smart economics and good politics. It’s also the morally right thing to do.
Call your senators and members of congress today to tell them $15 an hour is the least American workers deserve. You can reach them at 202-224-3121.
By: Robert Reich, The Robert Reich Blog, April 9, 2014
“Tramp Stamps, Racism And ‘Icky’ Pronouns: 8 New Life Tips From “Bell Curve” Author Charles Murray
Weeks after Rep. Paul Ryan was slammed for citing his writing, “The Bell Curve” author Charles Murray is out today with a new book: “The Curmudgeon’s Guide to Getting Ahead: Dos and Don’t of Right Behavior, Tough Thinking, Clear Writing, and Living a Good Life.”
Murray, whom Ryan cited as a source demonstrating “this tailspin of culture in our inner cities in particular,” and the Southern Poverty Law Center labels a “White Nationalist,” addresses his new book to readers who are “in or near your twenties,” “intelligent,” “ambitious,” and “want to become excellent at something.”
He is most famous for co-authoring “The Bell Curve,” a 1994 book (in the author’s’ words) “about differences in intellectual capacity among people and groups and what those differences mean for America’s future.” Describing what they called “the cognitive differences between races,” Murray and co-author Richard Hernstein wrote that “It seems highly likely to us that both genes and the environment have something to do with racial differences.” They also claimed, “There is some evidence that blacks and Latinos are experiencing even more severe dysgenic pressures than whites, which could lead to further divergence between whites and other groups in future generations.” (They describe “a dysgenic effect” as “a downward shift in the ability distribution.”)
Murray was supposed to conduct an interview with Salon (having agreed to it last week), but abruptly dropped out hours beforehand. In the interview’s place, here are some of his new book’s eight most memorable life tips:
On Tattoos: “As for tattoos, it does no good to remind curmudgeons that tattoos have been around for millennia. Yes, we will agree, tattoos have been common – first among savage tribes and then, more recently, among the lowest classes of Western societies. In America, tattoos have until the last few decades been the unambiguous badge of the proletariat or worse – an association still acknowledged in the phrase tramp stamp.”
On Pronouns: “The feminist revolution has tied writers into knots when it comes to the third-person singular pronoun. Using the masculine pronoun as the default has been proscribed. Some male writers get around this problem by defaulting to the feminine singular pronoun, which I think is icky.” Instead, “Unless there is an obvious reason not to, use the gender of the author or, in a cowritten text, the gender of the principal author. It’s the perfect solution.”
“Hot Air Is Cheap”: Paul Ryan’s Culture Attack Is An Excuse To Do Nothing About Poverty
Blaming poverty on the mysterious influence of “culture” is a convenient excuse for doing nothing to address the problem.
That’s the real issue with what Rep. Paul Ryan (R-Wis.) said about distressed inner-city communities. Critics who accuse him of racism are missing the point. What he’s really guilty of is providing a reason for government to throw up its hands in mock helplessness.
The fundamental problem that poor people have, whether they live in decaying urban neighborhoods or depressed Appalachian valleys or small towns of the Deep South, is not enough money.
Alleviating stubborn poverty is difficult and expensive. Direct government aid — money, food stamps, Medicaid, housing assistance and the like — is not enough. Poor people need employment that offers a brighter future for themselves and their children. Which means they need job skills. Which means they need education. Which means they need good schools and safe streets.
The list of needs is dauntingly long, and it’s hard to know where to start — or where the money for all the needed interventions will come from. It’s much easier to say that culture is ultimately to blame. But since there’s no step-by-step procedure for changing a culture, we end up not doing anything.
This is what Ryan said in a radio interview: “We have got this tailspin of culture, in our inner cities in particular, of men not working and just generations of men not even thinking about working or learning the value and the culture of work, and so there is a real culture problem here that has to be dealt with.”
What exactly does he mean by culture? In the context of “our inner cities,” Ryan can’t be talking about rap music and baggy pants. If so, he ought to visit any high school in any affluent suburb, where he will find kids listening to the same music and wearing the same clothes — kids who will grow up to be doctors and lawyers.
Is he talking about the breakdown of family structure? To me, that’s looking suspiciously more like effect than cause. As President Obama has noted, the rise in out-of-wedlock births and single-parent households seen years ago among African Americans is now being seen among whites, especially in communities hit hard by economic dislocation.
Ryan surely can’t be talking about the use of illegal drugs, since most surveys indicate that young blacks and Hispanics are no more likely to be drug users than are young whites.
Ryan refers specifically to “the value and the culture of work,” and he may be onto something — almost. His description of “just generations of men not even thinking about working” is ridiculous. That would be like demanding to know what cultural shortcoming keeps me from spending time thinking about sailing my mega yacht to my private island.
In depressed urban and rural communities, there is an acute shortage of meaningful work. There was a time when young men who didn’t plan to go to college could anticipate finding blue-collar work at “the plant” nearby — maybe a steel mill, maybe an assembly line. There they could have job security, enough income to keep a roof over a family’s head, a pension when they retired. Their children, who would go to college, could expect lives of greater accomplishment and affluence.
This was how the “culture of work” functioned. How is it supposed to happen without work?
Confronting the devastation suffered by what used to be working-class communities is hard; adjusting to post-globalization economic realities is harder. Say the word culture and you sound erudite and concerned, especially if you drop the name of the Harvard scholar Samuel Huntington, who described world affairs as a clash of civilizations with different cultural values.
My problem is that when you identify something so amorphous as culture as the fundamental issue, you excuse yourself for not proposing concrete solutions.
As you might have gathered, I’m suspicious of the cultural hypothesis as a way to explain who succeeds and who doesn’t. I believe outcomes mostly depend on opportunities and that people are much less likely to engage in self-destructive behavior if they see opportunities that make sense to them.
If we had universal pre- kindergarten that fed all children into high-quality schools, if we had affordable higher education, if we incentivized industry to invest in troubled communities — if people had options for which they were prepared — culture would take care of itself.
But all of that is expensive. Hot air, as Paul Ryan knows, is cheap.
By: Eugene Robinson, Opinion Writer, The Washington Post, March 24, 2014
“Crumbling Walls”: Boehner’s Anti-Unemployment Insurance Excuse Is Falling Apart
Nearly three months after federal unemployment benefits expired for over a million Americans nationwide, House Speaker John Boehner’s excuse for refusing to take up a bill to renew the federal Emergency Unemployment Compensation (EUC) program is falling apart.
When Senate Democrats and five Republicans struck a deal that would reauthorize the EUC program for five months and retroactively pay the benefits that expired on December 28, Speaker Boehner immediately dismissed the bill.
Citing a letter from the National Association of State Workforce Agencies (NASWA) – the state agencies that distribute the unemployment checks – Boehner argued that extending unemployment benefits would be too “difficult” and “unworkable,” due to the complications involved in ensuring that beneficiaries were actually looking for work during the proceeding three months.
Abandoning the House’s continuous claims that an extension would hinder job creation and dissuade long-term unemployed Americans from seeking employment, the Speaker argued that “the Senate bill would be costly, difficult to administer, and difficult to determine an individual’s eligibility.”
The bottom line, according to Boehner: ”This could increase the likelihood of fraud and abuse.”
NASWA president Mark Henry, however, is now clarifying that the organization does not endorse a particular position on whether or not the bill should proceed. As Politico reports, Henry says that some in Washington had “conflated” the concerns mentioned in NASWA’s letter.
“The letter that I wrote did not label the legislation ‘unworkable’; that was Speaker Boehner’s word,” Henry said, distancing himself from the Speaker’s stance.
Also, as The New York Times points out, state agencies managed to overcome that same “difficulty” back in 2010, when benefits were renewed after a lapse.
Even others in the GOP are not buying Boehner’s excuse, which seeks to appease House Republicans, who, for the most part, oppose an extension of the EUC program.
According to Politico, Senator Rob Portman, a powerful Republican also from Ohio, shot back at Boehner, saying he understands the “concern” over implementation, “but it’s been done before.”
“We’re eager to hear [the House’s] ideas as to how it could be implemented more effectively,” he added.
Portman was not alone in speaking out against the House’s opposition to the program’s renewal.
“There’s a lot of things that the Speaker doesn’t like that we do over here,” says Republican Senator Lisa Murkowski of Alaska. “What we have out there is a fair proposal.”
Senator Mark Kirk (R-IL) also spoke out, describing the deal as a “good compromise that takes care of people who are running out of their checks and does it in a way that is paid for appropriately.”
By: Elissa Gomez, The National Memo, March 26, 2014
“The Timidity Trap”: The Best Lack All Conviction, While The Worst Are Full Of Passionate Intensity
There don’t seem to be any major economic crises underway right this moment, and policy makers in many places are patting themselves on the back. In Europe, for example, they’re crowing about Spain’s recovery: the country seems set to grow at least twice as fast this year as previously forecast.
Unfortunately, that means growth of 1 percent, versus 0.5 percent, in a deeply depressed economy with 55 percent youth unemployment. The fact that this can be considered good news just goes to show how accustomed we’ve grown to terrible economic conditions. We’re doing worse than anyone could have imagined a few years ago, yet people seem increasingly to be accepting this miserable situation as the new normal.
How did this happen? There were multiple reasons, of course. But I’ve been thinking about this question a lot lately, in part because I’ve been asked to discuss a new assessment of Japan’s efforts to break out of its deflation trap. And I’d argue that an important source of failure was what I’ve taken to calling the timidity trap — the consistent tendency of policy makers who have the right ideas in principle to go for half-measures in practice, and the way this timidity ends up backfiring, politically and even economically.
In other words, Yeats had it right: the best lack all conviction, while the worst are full of passionate intensity.
About the worst: If you’ve been following economic debates these past few years, you know that both America and Europe have powerful pain caucuses — influential groups fiercely opposed to any policy that might put the unemployed back to work. There are some important differences between the U.S. and European pain caucuses, but both now have truly impressive track records of being always wrong, never in doubt.
Thus, in America, we have a faction both on Wall Street and in Congress that has spent five years and more issuing lurid warnings about runaway inflation and soaring interest rates. You might think that the failure of any of these dire predictions to come true would inspire some second thoughts, but, after all these years, the same people are still being invited to testify, and are still saying the same things.
Meanwhile, in Europe, four years have passed since the Continent turned to harsh austerity programs. The architects of these programs told us not to worry about adverse impacts on jobs and growth — the economic effects would be positive, because austerity would inspire confidence. Needless to say, the confidence fairy never appeared, and the economic and social price has been immense. But no matter: all the serious people say that the beatings must continue until morale improves.
So what has been the response of the good guys?
For there are good guys out there, people who haven’t bought into the notion that nothing can or should be done about mass unemployment. The Obama administration’s heart — or, at any rate, its economic model — is in the right place. The Federal Reserve has pushed back against the springtime-for-Weimar, inflation-is-coming crowd. The International Monetary Fund has put out research debunking claims that austerity is painless. But these good guys never seem willing to go all-in on their beliefs.
The classic example is the Obama stimulus, which was obviously underpowered given the economy’s dire straits. That’s not 20/20 hindsight. Some of us warned right from the beginning that the plan would be inadequate — and that because it was being oversold, the persistence of high unemployment would end up discrediting the whole idea of stimulus in the public mind. And so it proved.
What’s not as well known is that the Fed has, in its own way, done the same thing. From the start, monetary officials ruled out the kinds of monetary policies most likely to work — in particular, anything that might signal a willingness to tolerate somewhat higher inflation, at least temporarily. As a result, the policies they have followed have fallen short of hopes, and ended up leaving the impression that nothing much can be done.
And the same may be true even in Japan — the case that motivated this article. Japan has made a radical break with past policies, finally adopting the kind of aggressive monetary stimulus Western economists have been urging for 15 years and more. Yet there’s still a diffidence about the whole business, a tendency to set things like inflation targets lower than the situation really demands. And this increases the risk that Japan will fail to achieve “liftoff” — that the boost it gets from the new policies won’t be enough to really break free from deflation.
You might ask why the good guys have been so timid, the bad guys so self-confident. I suspect that the answer has a lot to do with class interests. But that will have to be a subject for another column.
By: Paul Krugman, Op-Ed Columnist, The New York Times, March 20, 2014
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