The
headline at the top of the opinion page of the Sunday Gazette this
week was ominous: “Heed warnings in new minimum wage report,”
in response to the proposal to raise the minimum in New York State to
$15 an hour.
Already,
the minimum wage for fast food workers in New York City is set to be
$15, phased in over several years and now, Governor Andrew Cuomo is
pushing for a statewide minimum wage of $15, and the “conservative”
groups are coming out of the woodwork, waving their reports that show
the devastation that would be visited upon the state if the minimum
is raised that much.
Now,
it’s one thing for the coalition of corporate groups to oppose
an increase in the minimum wage, because a raise cuts into their
profits, but a newspaper should be looking on its own to see whether
these people are on the level in their claims that businesses and the
state’s economy would be in decline.
Those
groups include the Empire Center for New York State Policy, the
Business Council of New York, New York State Farm Bureau, the
National Federation of Independent Business and a laundry list of
businesses which want workers willing to work for little, certainly
not livable wages. Generally speaking, these groups never met wage
slave conditions they didn’t like. After all, it’s their
stock in trade. Low wages and little regulation of working
conditions are what provide profits and what allow so many of these
businesses and corporations to keep their doors open.
So,
they hauled out their usual economists who predicted the dire
consequences for everyone, business, worker, and consumer, if the
minimum wage is increased to $15. They even say that a raise to $12
would not be as bad, but it still would be bad, very bad.
This
is a story and a fight that is about as old as the federal minimum
wage law itself, and the narrative never changes. “If you
raise the minimum wage, you’ll only be hurting the workers you
want to help,” is the usual pablum that is served up by these
groups. And it wasn’t just the federal minimum wage back
in the 1930s, it was the labor law, itself, as well as all of the
other benefits of a civil society that provided for the workers, the
poor, the elderly, the disabled, and the children, not necessarily in
order of importance.
We
should not be concerned about the attempts of Corporate America to
keep workers and farmers down, because it’s what they do, as we
know why there is a disparity in both wealth and income in the
country. What is always disturbing is that the great “free
press” in the U.S., under the Bill of Rights, routinely fails
to present any objective truth. In this case, they simply took the
words of the 1 percent as gospel and ran with it. They know on which
side their bread is buttered. These are the people who buy
advertising space, and they must not be alienated.
The
Gazette is in Schenectady, to which city Thomas Edison fled from New
Jersey, when the unions started organizing his business in the Garden
State. The “works,” as General Electric was known once
employed some 40,000 workers, line, professional, and clerical, and
Edison and his successors found ways to live with the unions that
followed the work. Schenectady thrived and was a bustling industrial
city, with nobody complaining that the workers earned four or five
times as much as the federal minimum wage at that time. What made
the city prosperous was that the workers spent their money in the
local economy, including Schenectady. Then, GE like other industrial
corporations, started “off shoring” the jobs. Renewing
prosperity has been one of the primary goals of the city, along with
all of the cities and counties in the nation’s Rust Belt.
Over
the past 30 years or more, there have been numerous studies by
economists and economic researchers and their reports have shown that
all of the predictions of job loss, cutbacks, and failures from an
increase in the minimum were just that…predictions. They have
not come to pass. Generally, the finding has been that local
economies improve where the workers are paid a livable wage. That’s
because the workers spend the money where they live and they spend it
right away, thus improving the bottom line for businesses, big and
small.
Although
the editorial pays slight attention to this aspect of the benefits of
rising wages, it spent the bulk of the editorial quoting from the
naysayers’ report, not mentioning any specific report that
disproved the corporations’ position.
Holly
Sklar, head of businessforafairminimumwage.org, cited a series of
studies by the Institute for Research on Labor and Employment at the
University of California, Berkley. The studies, she said,
“significantly advanced the research on minimum wage employment
effects. Minimum Wage
Effects Across State Borders
compared all neighboring counties in the U.S. located on different
sides of a state border with different minimum wage levels between
1990 and 2006 and found no adverse employment effects from higher
minimum wages.” There are many other studies that have
reached the same conclusions.
As
she pointed out, the buying power of the minimum wage peaked in 1968,
at $10.97, adjusted for inflation in 2015 dollars. She pointed out
that the unemployment rate nationally went from 3.8 percent in 1967,
to 3.6 percent in 1968, to 3.5 percent in 1969, and the next time the
unemployment rate approached that level was after the minimum was
raised in 1996 and 1997. Sklar quoted Business Week, from
2001: “Many economists have backed away from the argument that
minimum wage (laws) lead to fewer jobs.”
In
2013, a study by the Center for Economic and Policy Research showed
that, if the minimum wage had kept up with increases in worker
productivity, it would have been set at $21.72 in 2012, three years
ago. As we know, that did not happen and some research shows that
the minimum wage, if it grew with productivity and inflation, it
would be in the area of $25 an hour. Considering that, a $15-an-hour
wage doesn’t seem so high.
Many
states are considering a substantial raise in the minimum wage, while
a number of them already have, but they are usually phased in over
three or four years, so when the target minimum is reached, it may be
2020 or even later. Although many low-wage workers can’t wait
that long for their full time job to allow them to pay their bills,
there has been some progress made. The question is what do they do
in the meantime, as the rate of homelessness in most or all states is
rising steadily?
Corporations,
which to a great extent control our economy and politics, are
unambiguous about keeping all of the money they can. If they,
collectively, can keep just $5 of every worker’s wages, every
day, imagine the excess they can accrue from that number, whether
they are low-wage or high income. Back in 2010, the U.S. Department
of Labor estimated that there were about 138,641,000 workers, and
nearly 93 percent were wage and salary workers. That would be a tidy
sum, every day, wouldn’t it?
Most
of today’s opponents of a minimum wage, state by state, or
nationally, seem to be Republicans (although there have been some
Democrats who are anti-worker) and President Harry Truman had this to
say about the GOP and the minimum wage back in the middle of the last
century: “They favor minimum wage—the smaller the minimum
wage the better.” Not much has changed on that score in the
past 65 years.
The
most vociferous opponents of a raise fatten on their million-dollar
pay and multi-million-dollar “compensation packages,”
they solemnly announce, “$15 an hour will hurt those workers.”
It’s news to low-wage workers that a raise in pay is going to
hurt them. They are beginning to fight for an increase and
politicians are listening, because the state of the U.S. economy is
beginning to trouble even the more conservative economists.
Unfortunately,
the average citizen-worker cannot rely on the “free press”
to inform them of the condition of the country and the condition of
their lives, because most of the small papers (those that are left
standing) and the local television stations are largely held hostage
to their advertisers’ dollars, to keep the presses running or
the doors open. Papers like the Gazette are no longer providing any
realistic guide for the working class and the middle class, let alone
providing any solid, accurate information. They have the same access
to research that comes from other than the Chamber of Commerce, but
they are falling down on the job, instead often acting as agents for
those who run things.
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