Is indexing the minimum wage to inflation a good issue for Democrats?

[Feanorcurufinwe]

Poll question: Is indexing the minimum wage to inflation a good issue for Democrats?

Some might argue that it's class warfare, or that it's merely an incremental change, not beneficial enough to be worth pursuing.

I just think it's the right thing to do, and that alone makes it a good issue.

Sen. John Kerry: ``I helped lead the fight to pass the last minimum-wage increase in 1997. If I am elected president, I will continue to support increasing the minimum wage and indexing it to inflation. To begin with, I support increasing the minimum wage by $1.50 over the next year.''

Rep. Dennis Kucinich: ``I favor restoring the value that has been lost to inflation over the past 35 years, which would mean a minimum wage of over $8.50. I favor indexing this to automatically keep pace with the cost of living.''

http://www.guardian.co.uk/uslatest/story/0,1282,-3609393,00.html

[jpgray]

1. Yes--they can declare that Bush is cutting the pay of workers

Using the same logic that declares Kerry to be 'raising' taxes. They don't mention who he's raising taxes on, of course. :)

But yes, this is an issue that will help him with every demographic but the rich and the dumb.

[dakota_democrat]

2. Where's the I don't know option?

We do no damage by not talking about it...and I wonder what effects it would have on inflation if it was brought up. Everything I know about economics (considerable knowledge, actually) is that punching out such a wage increase that would effect so many people would send inflation skyrocketing to the point where the minimum wage increase might not mean much of anything.

I'd avoid it: Politically, it will do more damage than good, and logically...it will do more damage than good.

[SharonAnn]

11. Can you substantiate that? There must be some study you

can refer us to.

[SharonAnn]

13. "there were no job losses associated with the increase. "

February 7, 2001 Issue Brief #149

Step up, not out
The case for raising the federal minimum wage for workers in every state

As inflation continues to slowly erode its value, the minimum wage is again being considered by Congress. Currently at $5.15 an hour, it was increased most recently from $4.25 in two steps in 1996 and 1997. A proposal currently before Congress would raise the minimum wage by $1.50 in three steps, to $6.65 in 2003. In addition, the Bush Administration has suggested that states should be allowed to opt out of any minimum wage increase. Before deciding on these important issues, Congress should understand who would benefit from increases in the minimum wage and changes in its coverage.

Among the important facts to be considered in the debate are the following findings about the minimum wage:

The real value of today's minimum wage is 30% below its peak in 1968, and 24% below its level in 1979 (Figure 1)
If the minimum wage were increased to $6.65 today, 11.9 million workers, or 9.9% of the workforce, would be affected
By 2003, when the proposed increase would be fully phased in, 5.8% of the workforce would benefit.
Adults, women, and racial minorities are disproportionately helped by increases in the minimum wage.
There is no good rationale for allowing states to opt out of the increase. The states most likely to do so are the lowest-wage states, where the increase is most needed. Relative to higher wage states, those states with the lowest wages were not negatively affected by the last minimum wage increase.
The slowing economy should not preclude the proposed increase.

Evidence from the last time the minimum wage was raised during a downturn (1990-91) reveals that there were no job losses associated with the increase.


http://www.epinet.org/content.cfm/issuebriefs_ib149

[SharonAnn]

14. And then there's this.

EPI Issue Guide
Minimum Wage

http://www.epinet.org/content.cfm/issueguides_minwage_minwage

[Indiana_Dem]

3. No. Everytime i see the minimum wage go up,

the prices and wages of everything else goes up and the cycle keeps on happening. I don't see where it makes a bit of difference.

[arewethereyet]

4. it makes a difference

it kills jobs

[LincolnMcGrath]

6. A short term rise in unemployment

Long term gains in standard of living for all.

[SharonAnn]

10. Can you substantiate that? I don't believe that's true.

Refer us to a source for that?

[LincolnMcGrath]

5. Wages have been in decline for 3+ decades

Why have prices skyrocketed?

[DieboldMustDie]

15. Minimum wage increased in real terms from 1938...

to its highest level in 1968 ($1.60 then = $8.51 today). Since then it's declined in value by nearly 40%.

My own proposal is for 10% increases in each of the next 8 years, which would bring it to roughly $11 per hour.

[JohnKleeb]

7. I agree with Kucinich on this issue, heck I agree with him on everything

but hey glad Kerry wants to increase it.

[madrchsod]

8. never happen

i think min wage since it started averages about 4 or 5 cents a year. they`ll never raise it more than that average. wages have fallen for the last 25 years and there is no way to regain that amount of money.we were fuck`d along time ago....

[Feanorcurufinwe]

9. You are opposed to it because it will never happen?

Or did I miss part of your argument somewhere?

[DieboldMustDie]

12. There have been some big increases at times...

particularly the 1950 increase from $.40 to $.75; an 87.5% rise.   $.75 in 1950 dollars, by the way, is the same as $5.76 today (see: http://data.bls.gov/cgi-bin/cpicalc.pl)

U.S. Minimum Wage Since 1938
Year Minimum Wage

1997   $5.15
1991   $4.25
1990   $3.80
1981   $3.35
1980   $3.10
1979   $2.90
1978   $2.65
1976   $2.30
1975   $2.10
1974   $2.00
1968   $1.60
1967   $1.40
1963   $1.25
1961   $1.15
1956   $1.00
1950   $0.75
1945   $0.40
1939   $0.30
1938   $0.25
Chart updated 2/1/04

http://www.radford.edu/~maamodt/HR%20Statistics/Minimum%20Wage%20History.htm

[tobius]

16. Minimum wage needs to be $67.75 per hr

That way every one else has to get a raise too. More money in everyones pocket is good, this should be tied to a 30 hr/week with 6-8 weeks vacation a year depending on seniority. Retirement age set in stone at 45 yrs old with pension beginning with early retirement at 40 at 90% of highest pay plus 1% for each year of service.

[stldemocrat]

17. Poverty

I don't think that anyone should have to work full time and stay in poverty. It should probably be around $10/hr. They should also index it. If they want to keep prices from going up they should have a maximum wage of $200,000. Everything above that should get taxed at 100%. Oh, they can index the $200,000 too.