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Minimum
Wage Anniversary
by
Holly Sklar
June
26, 2003
When
President Franklin Roosevelt signed the Fair Labor Standards Act on June 25,
1938, during the Great Depression, he wanted to assure workers "a fair
day's pay for a fair day's work." On the 65th anniversary of the federal
minimum wage, Roosevelt's new deal has become a raw deal.
Roosevelt
knew that to stimulate the economy, you boost workers and their families, you
don't pile on tax cuts for millionaires and billionaires.
For
decades, the minimum wage and worker productivity rose together. Between 1947
and 1973, worker productivity rose 108 percent while the minimum wage rose 101
percent, adjusting for inflation.
Since
then, workers have put in their fair day's work without getting their fair
day's pay. Between 1973 and 2000, worker productivity rose 52 percent, but the
minimum wage fell 17 percent and hourly average wages fell 10 percent,
adjusting for inflation. Between 2000 and 2002, productivity rose 6 percent;
the real minimum wage fell 4 percent.
The
current minimum wage of $5.15 an hour is lower than the real minimum wage of
1950 ($5.71). Today's 53-year-old workers were born in 1950; Truman was
president, the Korean War began on June 25, there were no transistor radios,
and pocket calculators were two decades away.
Since
Congress last raised the minimum wage in 1997 to $5.15, it has raised
congressional pay from $133,600 to $154,700, an increase of $21,100--nearly the
pay of two minimum wage workers.
If
your image of the typical minimum wage worker is a teenager, think again. Think
of adult women working at checkout counters and in childcare, of healthcare
aides taking care of your parents or grandparents--without employer health
benefits, paid sick days or paid vacation.
A
$5.15 minimum wage--$10,712 a year--just doesn't add up. A single parent with
one child needs to work more than two full-time minimum wage jobs to make ends
meet. It takes more than three jobs at minimum wage to support a family of
four. Maybe the Bush administration's marriage promotion programs will push
polygamy.
See
if you can make ends meet on minimum wage with a new interactive wage and
household budget calculator on the web at www.raisethefloor.org. Or will you be
choosing between food and rent, healthcare and childcare?
It
would take $8.45 to match the minimum wage peak of 1968 in $2003. Since 1968,
worker productivity has risen more than 80 percent while the minimum wage has
dropped nearly 40 percent, adjusting for inflation.
When
the minimum wage is stuck in quicksand, it drags down wages for average workers
as well. About one out of four workers makes $8.70 an hour or less. That's not
much more than 1968's real minimum wage.
When
workers don't get a fair day's pay they are not just underpaid--they are
subsidizing employers, stockholders and consumers.
Plenty
of employers know how to make a profit without ripping off their employees.
In-N-Out Burger ranks first among fast food chains in quality, value and
service. Chef Julia Child ate In-N-Out burgers while recuperating from knee
surgery, the Associated Press reported. When the company opened a new
restaurant in Oxnard, CA, in 2002 there were 900 applicants for 70 jobs. The
starting wage is $8.25 an hour, with paid vacations, food at work, and the
option of participating in a 401(k) with a company match.
Conservatives
like to quote Adam Smith about the market. Smith wrote in "The Wealth of
Nations" in 1776, "It is but equity...that those who feed, clothe and
lodge the whole body of the people, should have such a share of the produce of
their own labour as to be themselves tolerably well fed, clothed and
lodged."
In
advocating minimum wage, Roosevelt said that goods produced "under
conditions that do not meet a rudimentary standard of decency should be
regarded as contraband."
We
don't let businesses claim they can't afford to make hamburger without E-coli
as a justification to keep serving up disease.
We
don't tell businesses to keep dumping toxic waste in the river if they claim
they can't afford proper disposal.
Poverty
wages are toxic to our families, communities, economy and democracy. It's time
to end them.
Holly Sklar is coauthor of Raise
the Floor: Wages and Policies That Work for All Of Us (www.raisethefloor.org). She can be
reached at hsklar@aol.com. Distributed by
Knight Ridder/Tribune News Service, June 24, 2003. © Copyright 2003 Holly Sklar