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Dear Auntie Pinko,
I think I got a solution to getting a minimum wage increase for the nation's working poor-you want to hear it? What we should do is change the Constitution so that a Congressman's hourly wage can not exceed the hourly wage of his state. I know they don't get paid by the hour, but you can do the math. Let's say a 1st term Convict-I mean Congressman takes home 125K per year, and he's from Georgia, if the minimum wage there is $5.65 per hour, then that is all that congressman from Georgia can get paid per hour. Plus-he'll have to pay his own transportation to/from his job in DC. What do you think about that?
Dorian in Alaska
Dear Dorian,
Auntie thinks that while it’s awfully tempting to take out our accumulated rage at the increasing levels of economic injustice and the damage it’s doing to our society on the current crop of highly unsatisfactory Congressional Representatives, we should probably focus on long-term solutions rather than short-term satisfaction. The problems are too complex for rigidly simple solutions. Nor is the Constitution the place to start tinkering with the economy.
Now, this doesn’t mean that I don’t agree with you that a) Something needs to be done about the minimum wage; and, b) Something needs to be done about the quality of our House of Representatives. Since the latter control the former, it’s easy to connect the two, but in my opinion we would ultimately regret the error.
Let’s start with the minimum wage. I live in a community that has adopted a local ordinance establishing a minimum wage much higher than the Federal $5.15 per hour, so I’ve had a chance to see a higher minimum wage in action, and I'm for it. So are the residents of eighteen states (plus the District of Columbia) that have established minimums from $5.25 to $7.63.
Although a great deal of analysis and tracking has been done and is continuing, most of the conclusions are still highly disputed. Businesses advance studies and figures that seem to prove that higher minimum wages depress employment, promote net job loss, inhibit the establishment of new businesses and the growth of existing businesses, and discourage business investment in higher-wage communities. Labor advocacy groups provide research and numbers that appear to demonstrate stronger community growth, increased economic activity, and minimal to no impact on the number of jobs and the net rate of job growth. Since the Federal Government has abandoned the practice of providing reliable, understandable, unbiased information on any subject, it’s difficult to mediate among these claims. ‘You pays your money, you takes your choice,’ as my grandfather used to say.
However, since the current Federal minimum wage would leave a full-time worker with one child more than $2,000 short of the appallingly inadequate Federal poverty guidelines, the current minimum wage is undeniably damaging to American families. Indeed, by current standards, two adults working full-time at the minimum wage trying to support three children would still fall short of the poverty line. The minimum wage falls short of meeting two important social goals: Providing incentive for hard work, and enabling parents to spend time raising their children. A paycheck totaling less than $200 (after employment taxes) for forty hours of work is at best a poor incentive. And requiring a parent to work more than 40 hours a week to maintain a poverty-level household doesn’t allow them much energy and time for checking their children’s homework, reading them bedtime stories, cooking nutritious meals, supervising their television viewing, meeting with teachers, or just sitting and talking.
That said, there are not too many minimum wage jobs in our economy. Depending on whose figures you use, somewhere between about 1/2 of one percent, and three percent of all jobs held by adults pay minimum wage. Minimum-wage jobs are unevenly distributed with rural areas seeing higher percentages of minimum-wage workers in the workforce than urban areas. On a practical level, most potential workers would rather cobble together a mix of sporadic part-time work, assistance program benefits, and unreported income derived from the shadow economy, than take a full-time minimum wage job. But it's critical to note that minimum wage sets the floor above which all the other jobs set compensation levels to compete for workers. When the minimum wage goes up, it exerts upward pressure on the next few levels up, where a great many Americans are employed.
Employers know that there is a strong correlation between the compensation they offer and the quality of workers they will be able to employ. Jobs requiring the least in the way of experience, education, and/or ability, and jobs that are not very demanding physically or mentally, are usually the bottom end of the wage scale. Employers can accept workers without much qualification or ability to do those jobs, but if they want more from their workers, they will have to pay more. The more ability, experience, etc., they need, the more they will have to pay to attract workers who can fill those jobs.
When more unskilled workers are available than unskilled jobs, employers can pay the minimum required by law. Competition will ensure that those jobs will eventually be filled, as long as the employer isn’t too picky about the quality of the work and the commitment of the workers. However, the number of jobs requiring virtually nothing in the way of ability, experience, and education are limited.
Congressional Representative is certainly not one of them.
If the job of Congressional Representative paid minimum wage, the only individuals who would run for Congress would be: a) Independently wealthy and able to subsidize themselves; b) Already totally corrupted by those willing to subsidize them in return for their votes; or c) Grotesquely unqualified and/or passionate to promote a personal agenda or ideology. There isn’t much difference between such a hypothetical House of Representatives and the current crop we are enjoying, is there, Dorian? Do you think they’d be able to do their very complex, demanding jobs any better than the current lot? Would they be able to resist the inevitable temptations of those who wanted to corrupt them any better than the current lot? And considering how reluctant American voters are to hold them accountable (we all want to throw out all those other scoundrels, but keep voting for our own scoundrel, don’t we?) I’d hate to get such a bunch entrenched in power.
Basic Congressional salary levels should be high — after all, making the laws we live by isn’t an easy job and we need to attract smart, committed, careful people to do that job. The level of responsibility is great, and the level of accountability should be equally great. We need to work the kinks out of that, first, and it will be a long tough fight. But once that accountability is established, I don’t see anything wrong with tying Congressional salary increases to some measurement of how well the least fortunate 40% are faring in our economy. I’m not an economist, and I know that such measures are tricky, but it should be possible to sort something out.
In the mean time, we need to demand that our Representatives do the right thing for American workers and their families, regardless of what is (or isn’t) in it for them. That’s their job, and our job is to hold them accountable. Thanks for asking Auntie Pinko, Dorian!
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