The
New York’s Legislature’s proposal at the end of last year, to raise
the minimum wage from $7.25 to $8.50 an hour, has brought
out the usual opposition, which dusted off old rhetoric
that such a move would “hurt the very people it is designed
to help.”
The
Business Council of New York State and the New York Farm
Bureau (NYFB) declared that an increased minimum wage would
“do nothing to decrease poverty or increase employment.”
Using classic right wing rhetoric, Dean Norton, president
of NYFB, declared an increase in the minimum wage to be
“a stealth tax for our state’s farmers masquerading as a
benefit for workers,” while the Business Council’s president,
Heather Briccetti, said a raise would “hurt the state’s
small businesses, farms, and not-for-profits that are struggling
to make their current payrolls.”
On
the face of it, of course, it seems ridiculous that a pay
increase would hurt low-income workers, rather than help
them. The $1.25 an hour increase that has been proposed
would give every minimum wage worker an extra $50 for a
40-hour week. It’s hard to see Corporate America’s point…that
it would harm workers.
Crocodile
tears flow freely from the likes of the Business Council
and the Farm Bureau over the “harm” done to working men
and women by such meddling in the “free
market,” by raising the minimum wage. Rather, they would
reduce the wages of American workers to those of developing
countries. That’s what they mean when they say “we must
remain competitive,” and they have been effective in making
that happen.
The
two business groups recently declared their commitment to
the economy of New York State: “(We are) committed to reducing
taxes, eliminating needless red tape and creating a more
business-friendly economy for our state based on sound free
market principles.” Just these three items on Corporate
America’s agenda tell us much about their aims and goals.
By
this, they mean that corporations and business should pay
less in taxes, that regulation of their operations should
be reduced or eliminated, and they want the state to make
its economy more business friendly by basing help to business
on “free market principles.” With ownership concentration
in banking, manufacturing, finance, energy, and food production,
it’s hard to see any free market working in the U.S.
If
the Farm Bureau believes that the free market is working,
they should talk to a few small farmers and ranchers, some
of who may be their own members. They will get a very different
story than their own perceptions, on the concentration of
wealth and power in the farm and food industry and how they
have been squeezed out of the market.
With
all of the combinations, mergers, and concentration of money
power, the “free market working” is illusion and myth. That
is why some of the members of these business groups that
lobby state legislatures and the congress to keep labor
costs at a minimum should take a closer look at what their
dues buys them.
The
constant and relentless pressure to drive down wages and
living standards of working women and men in the U.S.
by these two groups and many others like them has the effect
of driving down the living standard of wage workers, but
they also drive down the standards (income) of their own
members.
Often,
small business owners do the same kind of work that line
workers at a Wal-Mart or Home Depot do, so the “value” of
that work is set by the big box store. It’s no wonder that
small business owners are expected to deliver the goods
at a low price, one that will meet the “competition” of
a Wal-Mart. It’s the same for those engaged in small farm
agriculture. The farmer does essentially the same work as
a migrant worker performs on an industrial-sized food production
facility (as distinct from a farm). In an industrial food
production setting, the value is set by what the migrant
worker is paid and it is not much.
When
corporate lobbyists work hard to depress wages and living
standards (like fighting a very modest increase in the minimum
wage) for workers, they are depressing the “value” of the
work of many of their own members, business owners or farmers.
It’s little wonder that small businesses have such a short
lifespan. And, family farmers have been falling by the wayside
by the thousands in recent years. In the scheme of things,
the organizations that purport to represent them are complicit
in their demise, because they constantly drive down the
value of their work.
You
don’t need to be an economist to figure this out. If you
are trying to concentrate political and economic power in
a relatively small number of corporations and wealthy individuals,
this is the way to do it. Politicians are quick to declare
their undying support for small farm agriculture and small
independent businesses, but their allegiance is to the places
where the biggest bucks lie, for that’s how they keep getting
reelected.
At
least in New York this year, corporate interests will be
hard at work keeping working women and men in their places,
including fighting any increase in the minimum wage. Even
with a $1.25 an hour increase in the minimum, to $8.50 an
hour, this is far from a living wage. A worker would have
to have two such jobs to live a minimally decent life.
There
is an old saying that “everybody does well, when everybody
does well,” and that is true, but the concentration of wealth
in the top 1 percent tells us that most Americans are doing
far from well. Wealth disparity is staggering when you look
at the numbers: about 80 percent of us in the U.S. have control of only about 15 percent of
the wealth.
There
have been ample studies that show that Corporate America’s
alarm sounded over an increase in the minimum wage about
“fewer jobs,” “loss of jobs,” and “harm to the workers”
is false. They know it is false, but they will keep up the
drumbeat of opposition, because they have untold millions
of dollars for their propaganda and they own most of the
country’s think tanks, which supply newspapers, magazines,
news broadcasters, and colleges and universities with that
propaganda.
They
will keep pounding this issue home in every way and in every
place they can. It has nothing to do with reality. It is
ideological, and…it’s what they do.
BlackCommentator.com
Columnist, John Funiciello, is a labor organizer and former
union organizer. His union work started when he became a
local president of The Newspaper Guild in the early 1970s.
He was a reporter for 14 years for newspapers in New York State. In
addition to labor work, he is organizing family farmers
as they struggle to stay on the land under enormous pressure
from factory food producers and land developers. Click here
to contact Mr. Funiciello.
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