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February 20, 2006
Minimum Wage Gets More Minimal
Here's a stark contrast: think of the gap between a minimum wage worker and a guy like Jerald Fishman, chief executive of Analog Device who just picked up a payday worth $144.7 million (that's not a typo).
While the greed of a few executives is continuing unabated, here's what's happening to millions of minimum wage workers. As the Economic Policy Institute points out, "In 2005, minimum wage workers earned only 32% of the average hourly wage. Barring a minimum wage increase, we are poised to break a record in 2006 for the greatest inequality between minimum wage and average wage workers since the end of World War II.
"The minimum wage reached a peak of 56% of the average wage in 1950 and remained near 50% throughout the 1950s and 1960s. The decline in the minimum wage relative to the average wage since 1969 has resulted from continuous increases in average wages while Congress has raised the minimum wage only modestly and sporadically. In January 2006, the average hourly wage was $16.41. To reach 50% of the average wage—the level experienced in the 1950s and 1960s—the minimum wage (currently at $5.15) would need to be raised to $8.20."
February 20, 2006 in Economy | Permalink
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Comments
The Labor Department provides the history of minimum wage increases at http://www.dol.gov/esa/minwage/chart.htm. Notice that after six years with no increase, Republican President Eisenhower increased the minimum wage 33 percent. So far, with no increase in nine years, George Bush doesn't think minimum wage workers even deserve a 0.33 percent increase. Even his father raised the minimum wage by 90 cents an hour (after Reagan steadfastly refused and it hadn't been raise for 10 years).
But it's not just George W. and his sidekick Bunker Boy (duck when I shoot) that are the problem. The GOP (Grease Our Palms, Grab Our Profits and Give Others Poverty) has been in partial or full control of Congress since 1994. Clinton did manage to get a two-step 90-cent increase out of Congress in 1996, an election year (always good for votes).
Now it's been nearly nine years since the last increase took effect (Sept. 1, 1997) and this is an election year -- so just maybe the stars will align and Karl Rove will approve a minimal increase and...WAP! Wake up, you're dreaming.
Posted by: Robin O. Hunter | Feb 21, 2006 5:15:13 AM
The "business interests" are not about to raise the minimum wage right before their "guest worker" plan goes to Congress. IF they can hold down minimum wage rates and IF they can keep prevailing wages out of the mix, then they can post many jobs at or near minimum wage; and when no US citizens apply because they can't live on minimum wage, then the "busness interests" can go anywhere in the world for workers.
Interesting book came out a few years back called "Mollie's Job". Mollie was an African-American textile worker. The book detailed the journey of "her" job from the industrial areas of New England down to the non-union US south. From there it headed to Mexico and then from there to SE Asia.
Unionized New England - non-union South - Mexico- SE Asia. As Deep Throat said, "Follow the money."
Posted by: D Flinchum | Feb 21, 2006 5:29:33 PM
The contrast between minimum wage workers and obscenely overpaid corporate executives reminds me of a song Ry Cooder recorded in the early '80s - "The very thing that makes you rich makes me poor."
That's the way capitalism is structured - the rich get fat off someone else's starvation. Until labor starts seriously and openly discussing a radical break from the capitalist parties, and promotes a little class consciousness, we'll keep singing that old song.
Or as songwriter Larry Moore wrote:
"It's a war of the classes that we didnt't start
and the corporate assault is gonna tear us apart.
If we don't get up and unify
they'll be laughing in our faces as they watch us die!"
Posted by: Paul Burton | Feb 27, 2006 4:52:58 PM
Amen!!
Posted by: M~ | Feb 27, 2006 8:13:49 PM
Cheese is the best cheese in the world
Posted by: Bob | Mar 13, 2006 12:38:40 PM
What the hell are you talking about
Posted by: Fred | Mar 13, 2006 12:40:53 PM
