“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
“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
“Our Invisible Rich”: Most Americans Have No Idea Just How Unequal Our Society Has Become
Half a century ago, a classic essay in The New Yorker titled “Our Invisible Poor” took on the then-prevalent myth that America was an affluent society with only a few “pockets of poverty.” For many, the facts about poverty came as a revelation, and Dwight Macdonald’s article arguably did more than any other piece of advocacy to prepare the ground for Lyndon Johnson’s War on Poverty.
I don’t think the poor are invisible today, even though you sometimes hear assertions that they aren’t really living in poverty — hey, some of them have Xboxes! Instead, these days it’s the rich who are invisible.
But wait — isn’t half our TV programming devoted to breathless portrayal of the real or imagined lifestyles of the rich and fatuous? Yes, but that’s celebrity culture, and it doesn’t mean that the public has a good sense either of who the rich are or of how much money they make. In fact, most Americans have no idea just how unequal our society has become.
The latest piece of evidence to that effect is a survey asking people in various countries how much they thought top executives of major companies make relative to unskilled workers. In the United States the median respondent believed that chief executives make about 30 times as much as their employees, which was roughly true in the 1960s — but since then the gap has soared, so that today chief executives earn something like 300 times as much as ordinary workers.
So Americans have no idea how much the Masters of the Universe are paid, a finding very much in line with evidence that Americans vastly underestimate the concentration of wealth at the top.
Is this just a reflection of the innumeracy of hoi polloi? No — the supposedly well informed often seem comparably out of touch. Until the Occupy movement turned the “1 percent” into a catchphrase, it was all too common to hear prominent pundits and politicians speak about inequality as if it were mainly about college graduates versus the less educated, or the top fifth of the population versus the bottom 80 percent.
And even the 1 percent is too broad a category; the really big gains have gone to an even tinier elite. For example, recent estimates indicate not only that the wealth of the top percent has surged relative to everyone else — rising from 25 percent of total wealth in 1973 to 40 percent now — but that the great bulk of that rise has taken place among the top 0.1 percent, the richest one-thousandth of Americans.
So how can people be unaware of this development, or at least unaware of its scale? The main answer, I’d suggest, is that the truly rich are so removed from ordinary people’s lives that we never see what they have. We may notice, and feel aggrieved about, college kids driving luxury cars; but we don’t see private equity managers commuting by helicopter to their immense mansions in the Hamptons. The commanding heights of our economy are invisible because they’re lost in the clouds.
The exceptions are celebrities, who live their lives in public. And defenses of extreme inequality almost always invoke the examples of movie and sports stars. But celebrities make up only a tiny fraction of the wealthy, and even the biggest stars earn far less than the financial barons who really dominate the upper strata. For example, according to Forbes, Robert Downey Jr. is the highest-paid actor in America, making $75 million last year. According to the same publication, in 2013 the top 25 hedge fund managers took home, on average, almost a billion dollars each.
Does the invisibility of the very rich matter? Politically, it matters a lot. Pundits sometimes wonder why American voters don’t care more about inequality; part of the answer is that they don’t realize how extreme it is. And defenders of the superrich take advantage of that ignorance. When the Heritage Foundation tells us that the top 10 percent of filers are cruelly burdened, because they pay 68 percent of income taxes, it’s hoping that you won’t notice that word “income” — other taxes, such as the payroll tax, are far less progressive. But it’s also hoping you don’t know that the top 10 percent receive almost half of all income and own 75 percent of the nation’s wealth, which makes their burden seem a lot less disproportionate.
Most Americans say, if asked, that inequality is too high and something should be done about it — there is overwhelming support for higher minimum wages, and a majority favors higher taxes at the top. But at least so far confronting extreme inequality hasn’t been an election-winning issue. Maybe that would be true even if Americans knew the facts about our new Gilded Age. But we don’t know that. Today’s political balance rests on a foundation of ignorance, in which the public has no idea what our society is really like.
By: Paul Krugman, Op-Ed Columnist, The New York Times, September 28, 2014
“Corporate Tax Deserters”: Shirking Their Responsibility To Pay For What They Get
Corporations love to wrap themselves in the flag with sun-drenched TV commercials that proclaim a deep devotion to American workers and communities. But when it comes to actually taking responsibility for supporting the workers and communities that create the conditions for corporate profits, a record number of big businesses are deserting America.
Burger King is the latest corporation to announce it is moving to Canada — at least on paper — where it will pay lower taxes. In the past three years alone, at least 21 companies have completed or announced mergers with foreign corporations to avoid taxes in an operation known as “inversion.” That compares with 75 over the past 30 years. These only-on-paper moves will gouge a $20 billion tax loophole over the next decade.
These companies may be moving their taxes overseas, but they’re not ending their reliance on the U.S. government to operate profitably. They are just shirking their responsibility to pay for what they get. The companies still make money in the United States, where they hire workers educated by public schools, ship their goods on public roads, are kept safe by local police officers and firefighters, and protect their patents in America’s courts.
Of course, small businesses and American families can’t play the same traitorous game. We can’t hire lawyers and accountants to pretend to ship our homes and our income overseas. And most of us wouldn’t do that if we could.
We understand that paying taxes is part of our basic obligation as citizens and essential to building strong communities.
What we do resent about taxes is that the current system is upside down — big corporations and the wealthy game the system so they pay a smaller share of their income in taxes than working families and small business. The share of profits corporations spend on taxes stands at a record low. And those profits are reaching record highs.
It’s time to turn the tax system right side up by closing the tax loopholes that allow billionaires and huge corporations to escape paying their fair share to support the country that made them rich.
The Obama administration just took a major step to do that. Tiring of Republican objections to closing the corporate tax deserter loophole, Treasury Secretary Jack Lew announced he was issuing new regulations aimed at making it much harder for companies to reap tax benefits from an offshore move.
This step may curb some corporate desertion. In the long run, it would be best if Congress took action. Two bills (S2360 and HR4679) would end the current practice of treating corporate deserters as foreign companies when they are still really based right here.
Consumers can play a role too. In August, Walgreens — which bills itself as “America’s drugstore” — abandoned its plan to dodge $4 billion in taxes in the next five years by changing its corporate address to Switzerland. Walgreens reversed course when outraged consumers protested at its stores and on the Internet.
This nation faces huge challenges in building an economy that works for all of us. If we plan to build a better future for our children, we must insist that corporations be held accountable for their responsibilities to our families and communities.
By: Richard Kirsch, Senior Fellow at the Roosevelt Institute; The National Memo, September 26, 2014
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