Nobel Economists: Republicans Wrong on Minimum Wage
By Bob Geiger
With the buying power of the Federal minimum wage at its lowest point in 55 years, five Nobel Prize-winning economists have been joined by 650 of their peers, in calling on the Republican-led Congress to increase the minimum wage. Describing the last increase almost 10 years ago as now "fully eroded," the economists said that they agree with a report written in 1999 by the Council of Economic Advisors declaring that "modest increases in the minimum wage have had very little or no effect on employment."
"We believe that a modest increase in the minimum wage would improve the well-being of low-wage workers and would not have the adverse effects that critics have claimed," the economists wrote in a paper delivered this week on a conference call hosted by the Economic Policy Institute [1], an economic research group based in Washington, D.C.
In addition to asserting that the real value of the minimum wage is at its lowest point since 1951, the economists also noted that the ratio of what a minimum-wage earner makes and the average pay rates of other hourly workers is at a significant low.
"The ratio of the minimum wage to the average hourly wage of non-supervisory workers is 31%, its lowest level since World War II," they said. " This decline is causing hardship for low-wage workers and their families."
The Federal minimum wage has been at $5.15 an hour since 1997, which puts a working American earning that wage, even laboring 50 hours a week, at below the national poverty line.
Senator Ted Kennedy (D-MA) has been ferociously pursuing the issue for years and with particular fervor in the current Congress, which ends this year.
“These esteemed economists understand what everyone except the Republican leadership and the White House understand: an increase in the minimum wage is long overdue and would strengthen our economy," said Kennedy, in a statement Thursday. "Millions of American families are living in poverty while working hard for the American dream, while the Republicans block every effort to give them the raise they deserve --- despite skyrocketing increases in health care, gas prices, and education."
(The rest is here.)
With the buying power of the Federal minimum wage at its lowest point in 55 years, five Nobel Prize-winning economists have been joined by 650 of their peers, in calling on the Republican-led Congress to increase the minimum wage. Describing the last increase almost 10 years ago as now "fully eroded," the economists said that they agree with a report written in 1999 by the Council of Economic Advisors declaring that "modest increases in the minimum wage have had very little or no effect on employment."
"We believe that a modest increase in the minimum wage would improve the well-being of low-wage workers and would not have the adverse effects that critics have claimed," the economists wrote in a paper delivered this week on a conference call hosted by the Economic Policy Institute [1], an economic research group based in Washington, D.C.
In addition to asserting that the real value of the minimum wage is at its lowest point since 1951, the economists also noted that the ratio of what a minimum-wage earner makes and the average pay rates of other hourly workers is at a significant low.
"The ratio of the minimum wage to the average hourly wage of non-supervisory workers is 31%, its lowest level since World War II," they said. " This decline is causing hardship for low-wage workers and their families."
The Federal minimum wage has been at $5.15 an hour since 1997, which puts a working American earning that wage, even laboring 50 hours a week, at below the national poverty line.
Senator Ted Kennedy (D-MA) has been ferociously pursuing the issue for years and with particular fervor in the current Congress, which ends this year.
“These esteemed economists understand what everyone except the Republican leadership and the White House understand: an increase in the minimum wage is long overdue and would strengthen our economy," said Kennedy, in a statement Thursday. "Millions of American families are living in poverty while working hard for the American dream, while the Republicans block every effort to give them the raise they deserve --- despite skyrocketing increases in health care, gas prices, and education."
(The rest is here.)
Powered by Blogger
0 Comments:
Post a Comment
<< Home