Poison pill for the minimum wage bill

After significant pressure from party moderates, Republicans allowed a minimum wage bill to come to the House floor.  It seemed a triumph for the working poor, whose $5.15 an hour wage can't even put them over the poverty line for "workers with families."  However, an aide to Senate Republican leadership said that the only way minimum wage legislation would pass is with an estate tax rollback for the super-wealthy.  The article quotes Ohio Representative Tim Ryan's (D) response:

"It's outrageous the Republican Congress can't simply help poor people without doing something for their wealthy contributors."

Since it depends on the political vagaries of Congress and is not indexed to inflation, the minimum wage stagnates over time.  Since the last increase passed in 1996, the wage has lost $1 in value to inflation, most of that in the past six years while gas prices have nearly tripled.  In fact, the minimum wage hasn't been able to support a family of three at the poverty level since 1969.  Even with the Earned Income Tax Credit, minimum wage earners are still below the poverty line.

Some folks argue that because minimum wage increases can cause unemployment increases, they should be abandoned.  But there's something almost un-American about the notion that someone can work full-time and still be in poverty.

Comments

[Scott]

The overwhelming majority of people earning the minimum wage are teenagers employed in their first job. Increasing the cost of employing these people will lead to higher unemployment in this age group. There are no families of 3 or more working for the minimum wage.

[John Farrell]

Another issue frequently confronting low-wage workers is a lack of health insurance. Half of all bankruptcies are related to health care costs (http://tinyurl.com/nzc2n), and even two-thirds of these folks have health insurance!

[John Farrell]

Another potential drag on the minimum wage bill is the "tip credit" provision. Some states give waiters, waitresses and other tip recipients the standard minimum wage, while others use the federal (much lower) minimum assuming that tips will make up the difference. The new wage bill would pre-empt local laws favoring higher minimums with the federal standard, to the dismay of the states who prefer their own statutes.
http://tinyurl.com/j4uow