From Paul Constant (via Civic Action) <[email protected]>
Subject The current federal minimum wage is a national embarrassment.
Date August 15, 2021 8:01 PM
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No American should put in 40 hours of work only to find themselves trapped below the poverty line – but that’s the reality for too many workers. Right now, hundreds of thousands of workers are earning only $7.25 an hour – a federal wage so low that it's a national embarrassment. 

The last time Congress increased the federal minimum wage was 12 years ago. It's by far the longest our nation has gone without an increase to the minimum wage since the policy was first enacted in 1938. Even worse, after adjusting for inflation, workers today are making 21% less than what minimum wage workers earned 12 years ago. 

With no action on increasing the minimum wage in 12 years, it’s clear that Congress has failed to defend American workers from exploitative employers. That’s why we’ve been thinking about this idea to protect workers from this ever happening again: tying the minimum wage to a metric like productivity or inflation. This would ensure the minimum wage would automatically increase every year, and Americans wouldn’t have to struggle in poverty while Congress fails to find the courage to take action.

I know that you agree we need to protect American workers, and that’s why I’m reaching out to you today to see what YOU think about this innovative solution to tie minimum wage to a metric like productivity or inflation. So, please tell us now:

Should we tie minimum wage to a metric rather than the whims of Congress?

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For decades, opponents claimed that raising the wage would kill jobs, close businesses, and move industries to states with lower wages. But in cities like Seattle, where the minimum wage is now $16.69 per hour, those claims have been proven flat-out wrong.

Study after study, as well as real-world evidence, has shown that raising the wage doesn't kill jobs, raise prices, or bankrupt businesses. In fact the contrary is true. That’s because when workers have more money, they spend that money in local businesses, which then hire more workers to meet the increased demand. It’s a virtuous cycle that only benefits our economy.

Yet, neither Democrats nor Republicans have found the political courage to raise the minimum wage – and corporations are paying their workers next to nothing because of it. 

Productivity has skyrocketed in the last few decades, but employers have fought to keep wages low. According to the Economic Policy Institute, if U.S. workers’ wages had risen at the same rate as their productivity over the last four decades, the typical worker would be earning about $10 more per hour right now.

Virtually every Econ 101 class teaches the trickle-down myth that workers are paid what they are worth. We know that’s not the reality in the U.S. – but locking the minimum wage into national productivity numbers or inflation would be a way to finally ensure that claim is true. 

So, John, I’m reaching out to you directly to find out what you think about tying the minimum wage to a metric like productivity or inflation. I’m hoping to collect your response today, so please answer our poll now – before you click away:

Should we tie minimum wage to a metric rather than the whims of Congress?

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Thank you, 

Paul



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