The Democratic Convention in Idaho Falls held a one-hour discussion panel about Idaho’s and America’s stagnant minimum wage. Idaho’s minimum wage matches the federal standard, set at $5.15 per hour since 1997. The purchasing power of this wage has indisputably eroded in the face of inflation.
Shirley Ringo from Moscow told how the Democrats fought to get a hearing on raising Idaho’s minimum wage. Bruce Newcomb called it a political maneuver and accused the Democrats of not really caring about working families. Shirley explained how bills get ‘readings’ but are not really read, unless one person objects. Then the bill gets read, which gums up the political process because the bills are often 30 pages long and full of legal terms. Shirley said the Democrats only got a hearing because they threatened to object and have the bill read. The measure was overwhelmingly voted down by Republicans.
Chuck Oxley quoted numbers that full-time minimum wage workers only earn $10,700 per year, and the minimum wage is only worth $4.23 now when adjusted for inflation since 1997.
An Idaho AFL-CIO representative spoke about how Idaho’s children are our biggest export because even if they get an education they often cannot find jobs that pay as well as Idaho’s surrounding states. He said working women in Idaho are ranked last in wage earning anywhere in America. He said higher minimum wages equate to more consumer spending, and called the argument that higher minimum wages will mean McDonald’s charges more for hamburgers a lie. He said he has seen the exact same prices for McDonald’s hamburgers in states that mandate higher minimum wages.
Chuck pointed out that 32,000 Idahoans earn between $5.15 and $6.15 per hour, and they would have all gotten the $1 raise proposed by Democrats in the last legislative session.
The AFL-CIO representative said Idaho needs more Democrats for balanced power instead of occasionally being pacified with a hearing. This statement drew applause from the crowd.
Someone brought up the argument that higher minimum wages mostly go to suburban kids who do not really need it. Chuck said at least those suburban kids won’t ship the money into foreign investments like corporations often do with their tax breaks.
Someone else said a $1 per hour raise is a baby step, and they want to see $1 per hour increases for three straight years. Two people suggested if legislators won’t raise the wage then citizen’s initiatives are needed. Someone cited a poll showing 72.5% of Idahoans want a higher minimum wage. A spectator asked how Republicans can preach family values and keep the minimum wage low that forces parents to work longer times away from their families.
A statistic was quoted that in 1968 the minimum wage was 60% of the average national wage, but today the minimum wage is only 33% of the average national wage.
A former legislator stood and pointed out that most minimum wage earners have to use Medicaid. He said therefore all Idahoans are subsidizing cheapskate employers.
The AFL-CIO representative said Speaker of the House Bruce Newcomb screamed about Wal-Mart helping their employees get on public assistance, but Newcomb buried a bill addressing the problem because it identified that Idaho state employees were being screwed just as much as Wal-Mart employees were. He said Newcomb did not want to be embarrassed by the report.
I think it is ironic that Congress ensures they get annual cost of living raises when they are already well compensated, and yet the minimum wage can be left on the back burner. I think Congressional pay raises ought to be tied to minimum wage increases percentage wise. If Congress gives themselves a 3% raise, the minimum wage would raise 3% at the same time.
I wonder also why tax rebates are said to stimulate our economy by putting spending money in consumers’ hands, but increased minimum wages will not do the same?
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{ 11 comments… read them below or add one }
The current minimum wage in America is a JOKE. As an entry-level worker, I find it disgusting that I have to sell stuff to pawn shops from time to time to make rent (which is WAY too high for Idaho property tax rates, but that’s a discussion for another time).
I believe a decent min. wage should start at $7.00 per hour. I work in a small business, and I know they could make it work.
Why not put the minimum wage at $15.00 per hour? That makes more sense than $7.00.
Idaho’s minimum wage will never increase as long as you have Legislators that think having a low wage not only helps business but those working for that wage.They see minimum wage as a tool to help people to better themselves.
And what is the amount you are proposing vote? I suggested $15.00, would you suggest a different amount?
I would suggest $7.15 to start and a increase according to national cost of living increases yearly
How would you respond to the position that an expansion of the Earned Income Tax Credit would be much more effective and equitable way of helping the working poor than an increase in the minimum wage?
Heck, as a teenager making min wage, I’d be happy with a 5.50 per hour!! Did you know that the Idaho min. wage hasn’t been increased for 10 years. TEN!! I was SIX the last time it was changed. In the past year or two gas prices alone have gone up over a dollar per gallon. Thank goodness my parents have a deal with my car privledges. As long as I keep a 4.0, expenses are paid for. Still I’m trying to save for college! I want to be able to take classes and get good grades without being too crowded with work and homework. a little extra money in savings will help ALOT.
The problem I find, is for people like me who make around $9.00, and have had to work to that from minimum wage @ $5.15 (which takes a few years). Once the minimum wage is raised, we dont get a porportional raise in income. So if say the minimum wage is increased to $8.00, an entry level person could be making more than a person like me (who has been with their company a few years) in a lesser amount of time than it took me to get to the same point. Then, when inflation catches up the minimum wage (which it will) I will be making less porportionally than I am with our current minimum wage.
The problem from a buisiness standpoint is that if you have to pay your employees more, you have to charge more for your goods and services to make up for the loss… thus incurring inflation. Perhaps an ethical limit on profit through better consumer information would be a better idea.
For example; If a pair of jeans only costs a few dollars to make (from materials to construction and marketing) then is it ethical to make a 300% – 600% return in profit on them? Yet, we as consumers put up with this due in large part to ignorance in the cost of manufacturing and production. If you knew what said pair of jeans cost the manufacturer to make… say $15.00 would you still buy them for $80.00? I propose that if we were able to limit inflation due to excess profit on goods and services an increase in the minimum wage would not be needed.
Do you really think our economy can handle a Federal minimum wage of 15.00 an hour? Do you realize how many employment cut-backs businesses will have to make, and how much more they will have to charge just to make a profit? Also, you have to consider different areas have hugely different economies. Rural areas simply cannot afford a 15.00 an hour minimum wage.
I’ve never heard of the proposed 15 dollar “Federal minimum wage”. From what I’ve read in the past, the federal minimum wage is supposed to go up to 7.35 an hour by next year. (I think that was the number but I could be mistaken) Regardless, I think 7.35 is more reasonable than 15. I agree with Anonymous in that I don’t see our economy handling such a huge jump in the Federal min wage, but 7.35 is more realistic due to the steady increase in the cost of living, inflation etc.
I’m looking forward to see the new documentary of the couple that is going to document their lives with both of them trying to make ends meet by living off of 5.35 and hour for a couple months. It should be interesting. It’s being made by the same guy that did “Super-size Me”, where he ate nothing but McDonalds food breakfast, lunch & dinner for a whole month. Obviously they started their documentary a year or so back when the min wage was still 5.35 an hour. (isn’t it up to 6 something these days?)
Federal minimum wage is currently $5.85 per hour.
It’s not a livable wage, even with two people working. In fact, they’ll qualify for Food Stamps at that wage, 40 hrs/week.
Food Stamps are for those who need to supplement their budget due to extreme poverty. Therefore, minimum wage = poverty.
Folks don’t want to mandate a livable wage because it will create a snowball effect and raise all other costs which will have to be passed along to the consumers, effectively negating the impact of the higher wage for the person who is earning it (and the rest of us bear the costs).
But without some form of higher wage we are consigning those who earn this amount to a life of dependency, unless they have the skills or education to rise beyond it. And the rest of us are paying the taxes for the public assistance.
I disagree with the concept that only people new to the work force will get this wage. When I lost my job in 1989 I was reduced to minimum wage for several years while I looked for a better job. I qualified for food stamps the entire time, and I was working 40 hours/week.