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[Minimum Wage Radio Address]
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1
OPPONENTS' CLAIMS ABOUT THE 1996 MINIMUM WAGE INCREASE
Rep. Dick Armey (R-TX):
"Dick Armey said he would fight this with every fiber of his body, and John Boehner said
that he would rather commit suicide than vote for an increase in the minimum wage." [NBC,
8/20/96]
This will have perverse employment effects on the least advantaged in our society,' said
House Republican leader Dick Armey.' This is feigned compassion by bleeding our hearts
with other people's money,' Armey continued. "This is another chance for Washington to
feel good about itself, while others bear the cost.' [UPI, 5/23/96]
Armey "insisted that boosting the minimum wage is 'bad policy' and would lead to the loss
of hundreds of thousands of low-wage jobs, particularly for young workers entering the work
force and for minorities in inner cities." [The News and Observer (Raleigh, NC), 5/24/96]
"Congressman Dick Armey strongly stated that he also is against the raise because it will
mean job losses for the most desperate people." [The Ethnic News Watch (Washington Afro-
American], 6/1/96)
"Paul Morrell, Armey's Washington, DC spokesman, says his boss firmly believes any
minimum wage is a 'hurtful policy,' and "leads to layoffs of the most vulnerable citizens.
Morrell amplifies the point about the minimum wage in the best Armey tradition- with an
oft-repeated, hyperbolic tale that has no doubt by now become business management
folklore. 'There was a restaurant chain in the '70s that was doing very well,' Morrell says.
'When Congress voted one of its increases in the minimum wage, the chain, in order to
maintain its abilities to serve to the public, resorted to laying off two employees per shift all
across the country. They had to make up for the loss by creating salad bars." [Dallas
Observer, 8/1/96[
Rep. Tom DeLay (R-TX):
"In a House speech, [Rep. Tom| DeLay, a former owner of a pest control service, said the
minimum wage is 'an intrusive government mandate' that hurts businesses"
The Democratic Party is to job creation what Dr. Kevorkian is to health care: a job-killer
cloaked in kindness,' said House Majority Whip Tom DeLay." [The Kansas City Star,
10/3/96]
Rep. Jay Dickey (R-AR):
Dickey, opposed the increase 'not because I don it want to help working Americans but
because I do want to help them. We know that raising the minimum wage will kill jobs and
take opportunities away from those we claim we want to help the most [Port St. Lucie
News (Stuart, FL), 5/26/96]
Sen. Phil Gramm (R-TX):
"Sen. Phil Gramm (R-TX) and other conservatives have vowed to fight a minimum wage
increase because they contend it would destroy millions of low-paying, entry-level jobs and
benefit mostly teenagers who live at home and don't really need the money. Gramm points
out that more than 60 percent of minimum wage employees are part-timers. 'You raise the
minimum wage and you kill the jobs that allow students to work their way through school,'
he said. [The News and Observer (Raleigh, NC), 4/21/96]
Rep. Nick Smith (R-MI)
Government can t set prices. That's not the way our system works,' said Rep. Nick Smith,
(R-MI). 'Competition is just as important in the labor force as it is in the total economy."
[Associated Press, 8/2/96]
Rep. Bill Archer (R-TX):
Bill Archer said, "The increase in the minimum wage will be inflationary, it will cost jobs.
Young workers at entry level will be denied the opportunity to have entry-level jobs, and I
personally think it counterproductive." [CNN, 5/15/96]
"As Congress considers minimum wage legislation that will lead directly to the loss of entry
level, low-wage jobs, it 's vital we take action to minimize those job losses,' said Ways and
Means Committee Chairman Bill Archer." [Associated Press, 5/14/96]
Rep Porter Goss (R-FL):
"Those seeking a minimum-wage increase fail to see the unintended consequences,' said
Rep. Porter Goss, (R-FL). 'It would not create a living wage.' (The Dallas Morning News,
5/23/96)
PRESIDENT CLINTON'S RADIO ADDRESS TO THE NATION:
WORKING WITH CONGRESS TO RAISE THE MINIMUM WAGE
EMBARGOED for release UNTIL 10:06 AM EDT, Saturday, September 2, 2000
Today, in his weekly radio address, President Clinton called on Congress to make passing its
first order of business passing a clean straightforward increase in the the minimum wage. The
President first called for a $1 increase in the minimum wage in his State of the Union Address in
January 1999. For more than a year and a half, Republican Congressional leaders have stalled
the measure and put up obstacles such as spreading the increase over three years instead of two,
linking the measure to rolling back important overtime and pension protections and passing a
huge tax cut for businesses. Before Congress left for its summer recess, the President once again
called on Congress to set aside its legislative games and work together to help working families
make ends meet. Progress over the past week suggests that a bipartisan bill that benefits 10
million American workers is possible.
Minimum wage increase would provide real benefits for working women and families: At a
time when we are experiencing the longest economic expansion in history, the proposed $1
increase before Congress would merely return the real value of the minimum wage to the level it
was in 1982. This small raise would provide real benefits for more than 10 million workers,
including millions of women and hard-pressed families:
Approximately 33 percent of minimum wage workers rely on their income to support
children under 18;
More than 60 percent of minimum wage workers are women; and
16 percent of minimum wage workers are African American and 20 percent are Hispanic.
A minimum wage increase helps hard-pressed working families make ends meet. Raising the
minimum wage from $5.15 to $6.15 would raise the annual earnings of a full-time worker by
about $2,000 a year. This increase would translate into enough money to pay for nearly 7
months of groceries or 5 months of rent.
Raising the minimum wage rewards work and does not cost jobs or harm the economy:
Experience has demonstrated that increasing the minimum wage rewards work and allows
millions of additional workers to share in the economic expansion without harming the economy
or job creation. Since the last minimum wage increase was signed into law in 1996, the
economy has created more than 11 million jobs, and the unemployment rate has fallen from 5.2
percent in September 1996 to 4.0 percent in July 2000. Labor market trends for workers most
affected by the minimum wage increase -- including younger workers with lower educational
levels and minorities -- also show no negative impact of the minimum wage on employment. In
fact, recent research has even suggested that higher wages can increase employment, because
they increase employers' ability to attract, retain, and motivate workers.
Congress needs to drop 'poison pills' in minimum wage legislation: While recent
developments suggest that progress is possible on the minimum wage, the President cautioned
that many issues remain to be worked out. For example, Congress should not use the cover of
giving raises to some workers to take away overtime pay from others. In addition, even though
workers have already waited nearly two years for an increase, the Senate has so far insisted on
spreading the minimum wage increase out over an additional year and Majority Leader Lott has
yet to formally agree to Speaker Hastert's offer.
Bipartisan cooperation can produce an increase this year: It has been more than 19 months
since President Clinton proposed increasing the minimum wage by $1 over two years.
Republican congressional leaders first blocked the measure, then as bipartisan pressure began
building, were forced to allow votes. Even though the proposal had broad bipartisan support in
both Houses, Republican leaders continued to erect obstacles to its passage such as spreading the
increase over three years, linking it to proposals that roll back overtime and pension protections
and insisting on a huge tax cut. Meanwhile, delay has cost a full-time worker $900 in lost wages
and the buying power of the minimum wage has continued to slip. This week. Speaker Dennis
Hastert indicated that Republicans may be willing to drop some of its obstacles. The President
expressed optimism that the Administration could work with Republican leaders to complete a
minimum wage increase soon after Congress reconvenes.
The minimum wage increase is a first step in completing work on America's priorities: The
President emphasized that providing relief to millions of American workers by increasing the
minimum wage does not relieve Congress from completing work on a fiscally responsible budget
that invests in America's priorities or other bipartisan priorities that have been languishing in
Congress for too long: These include:
A meaningful Patients Bill of Rights that puts the interests of patients before insurance
company profits;
A Medicare prescription drug plan available to all seniors;
Common sense gun safety legislation to keep guns out of the wrong hands;
Laws to prevent hate crimes based on a victim's sexual orientation, gender, or disability; and
Permanent normal trade relations to open China's markets to American goods and its society
to powerful forces of democratization.
PRESIDENT CLINTON'S RADIO ADDRESS TO THE NATION:
WORKING WITH CONGRESS TO RAISE THE MINIMUM WAGE
EMBARGOED for release UNTIL 10:06 AM EDT, Saturday, September 2, 2000
Today, in his weekly radio address, President Clinton will call on Congress to make passing a
clean, straightforward increase in the minimum wage it's first order of business when it
reconvenes on Tuesday. The President first called for a $1 increase in the minimum wage in his
State of the Union Address in January 1999. For more than a year and a half, Republican
Congressional leaders have stalled the measure and put up obstacles such as spreading the
increase over three years instead of two, linking the measure to rolling back important overtime
and pension protections and passing a huge tax cut for businesses. Before Congress left for its
summer recess, the President once again called on Congress to set aside its legislative games and
work together to help working families. The President therefore welcomed Speaker Hastert's
offer this week to drop some of these obstacles and pass a clean increase that will benefit more
than 10 million workers.
President Clinton applauds Speaker Hastert's offer to work together: It has been more than
19 months since President Clinton proposed increasing the minimum wage by $1 over two years.
Republican congressional leaders first blocked the measure, then as bipartisan pressure began
building, were forced to allow votes. Even though the proposal demonstrated its broad bipartisan
support in both Houses, Republican leaders continued to erect obstacles to its passage such as
spreading the increase over three years, linking it to proposals that roll back overtime, and
pension protections and insisting on a huge tax cut. Meanwhile, delay has cost a full-time
worker $900 in lost wages and the buying power of the minimum wage has continued to slip.
Fortunately, Speaker Dennis Hastert indicated this week that Congress may be willing to drop
some of its obstacles. The President expressed optimism that the Administration could work
with Republican leaders to complete a minimum wage increase soon after Congress reconvenes.
Minimum wage increase would provide real benefits for working women and families: At a
time when we are experiencing the longest economic expansion in history, the $1 increase before
Congress would merely return the real value of the minimum wage to the level it was in 1982.
This small raise would provide real benefits for more than 10 million workers, including millions
of women and hard-pressed families:
Approximately 33 percent of minimum wage workers rely on their income to support
children under 18;
More than 60 percent of minimum wage workers are women; and
16 percent of minimum wage workers are African American and 20 percent are Hispanic.
The benefit that a minimum wage increase provides hard-pressed working families makes a real
difference. Raising the minimum wage from $5.15 to $6.15 would raise the annual earnings of a
full-time worker by about $2,000 a year. This increase would translate into enough money to
pay for nearly 7 months of groceries or 5 months of rent.
Raising the minimum wage rewards work and does not cost jobs or harm the economy:
Experience has demonstrated that increasing the minimum wage rewards work and allows
millions of additional workers to share in the economic expansion without harming the economy
or job creation. Since the last minimum wage increase was signed into law in 1996, the
economy has created more than 11 million jobs, and the unemployment rate has fallen from 5.2
percent in September 1996 to 4.0 percent in July 2000. Labor market trends for workers most
affected by the minimum wage increase -- including younger workers with lower educational
levels and minorities -- also show no negative impact of the minimum wage on employment. In
fact, recent research has even suggested that higher wages can increase employment, because
they increase employers' ability to attract, retain, and motivate workers.
Congress needs to drop 'poison pills' in minimum wage legislation: While recent
developments suggest that progress is possible on the minimum wage, the President cautioned
that many issues remain to be worked out. For example, Congress should not use the cover of
giving raises to some workers to take away overtime pay from others. In addition, even though
workers have already waited nearly two years for an increase, the Senate has so far insisted on
spreading the minimum wage increase out over an additional year and Majority Leader Lott has
yet to formally agree to Speaker Hastert's offer. Finally, any progress made for workers this
year could be rolled back next year by campaign proposals offered by leading Republicans that
allow states to unilaterally ignore the minimum wage.
The minimum wage increase is a first step in completing work on America's priorities: The
President emphasized that providing relief to millions of American workers by increasing the
minimum wage does not relieve Congress from completing work on a fiscally responsible budget
that invests in America's priorities or other bipartisan priorities that have been languishing in
Congress for too long: These include:
A meaningful Patients Bill of Rights that puts the interests of patients before insurance
company profits;
A Medicare prescription drug plan available to all seniors;
Common sense gun safety legislation to keep guns out of the wrong hands;
Laws to prevent hate crimes based on a victim's sexual orientation, gender, or disability; and
Permanent normal trade relations to open China's markets to American goods and its society
to powerful forces of democratization.
GOP.gov News: TANCREDO VOTES FOR SMALL BUSINESS TAX RELIEF
http://www.gop.gov/item-news.asp?N=2000030921560.5
HOME I SEARCH/SITE INDEX I LOG ON CUSTOMIZE
GOP.20
SECURING
FROM THE OFFICE OF
AMERICA FUTURE
Representative Thomas G. Tancredo
Colorado, 6th District
Tax Relief for
Communication Center I Home Page
Working Americans
NEWS RELEASE I Contact: Greg Meyer (202) 225-7882
Death Tax Repeal
Bill Sent To
President
TANCREDO VOTES FOR SMALL
Excellence in
BUSINESS TAX RELIEF
Education
"American small businesses are going to lead us into the
next millennium."
Bolstering National
Security
WASHINGTON, Mar. 9- WASHINGTON, DC - U.S. Representative
Strengthening
Tom Tancredo (R-CO) voted in the House of Representatives
Social Security
today for legislation that would provide America's small
businesses with much needed tax relief.
"The real backbone of this robust economy has been America's
Sign Up for
small businesses," Tancredo said. "With over 117,000 small
E-mail:
businesses in Colorado, not including the 184,000 self employed
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interested in.
individuals, the tax relief package passed today will enable them
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to compete locally, nationally, and globally."
a weekly digest.
The tax relief bill, which passed the House by a vote of 257-169,
would provide retirement security by increasing limits on
employee contributions to 401 (k)s and other retirement plans.
The bill also makes it easier for employers to begin retirement
plans for their workers while creating more flexibility for
employees to roll their retirement savings over to different types
of plans when they change jobs.
The bill would also provide Death Tax relief cutting rates from
37-55% to 16-48%, providing $26.9 billion in savings, and a
100 percent deduction for self-employed individuals health
insurance costs. The bill would also increase the business meal
deduction to 60 percent, relief that will be welcomed by the
small business community.
Congress passed the small business tax relief bill before voting
on H.R. 3846, which passed the House by a vote of 282-143,
and would raise the minimum wage by $1 over two years.
"I am opposed to increasing the minimum wage and voted
against passage of H.R. 3846, because study after study has
indicated that raising the wage rate does not improve living
standards or increase wages," Tancredo said. "Congress
increased the minimum wage by 22 percent over the past two
years to $5.15. This increase has cost America's young and
low-skilled workers 128,000 jobs."
1 of 2
8/30/2000 5:26 PM
GOP.gov News: TANCREDO VOTES FOR SMALL BUSINESS TAX RELIEF
http://www.gop.gov/item-news.asp?N=20000309215605
"Losing sight of the fact that small business owners make up the
base of our booming economy is an injustice," Tancredo
continued. "American small businesses are going to lead us into
the next millennium."
###
Representative J.C. Watts, Jr., Chairman
Republican Conference, U.S. House of Representatives
Privacy & Security Statement
2 of 2
8/30/2000 5:26 PM
GOP.gov News: The Heart of Our West Texas Economy
http://www.gop.gov/item-news.asp?N=20000711154431
HOME SEARCH/SITE INDEX LOG ON CUSTOMIZE
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SECURING
FROM THE OFFICE OF
AMERICA FUTURE
Representative Larry Combest
Texas, 19th District
Tax Relief for
Communication Center I Home Page
Working Americans
NEWS RELEASE I Contact: Becca Underwood Dickerson (202) 225-4005
Death Tax Repeal
Bill Sent To
President
The Heart of Our West Texas Economy
Excellence in
Education
19TH DISTRICT, Texas, Mar. 12- Most folks in West Texas know
that small businesses are vital to our local and state economy.
Not only do they play a critical role by injecting new ideas into
Bolstering National
the economy, but their diversity and composition provide the
Security
work force with many opportunities. Of the 375,357 businesses
with employers in the state of Texas last year, 98.7 percent of
Strengthening
these businesses were considered small businesses, based on
Social Security
data for businesses with fewer than 500 employees. The most
important aspect of any business is the employees; what is good
for the employees is good for small businesses. In turn, that is
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also good for the local economy.
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Last week, the U.S. House of Representatives voted for a
interested in.
measure, H.R. 3846, to mandate an increase in the minimum
- Get instant updates or
a weekly digest.
wage by $1 over two years, which I did not support. Another
piece of legislation considered that day, and one which I did
support, was the "Small Business Tax Fairness Act," H.R. 3081.
This tax relief bill provides $45.8 billion in tax relief over six
years. While I think that it was wise to render tax relief to
provide economic opportunities for small businesses, I do not
believe, as some do, that it will ease the detrimental effects an
increase in the standard minimum wage would have on workers
and businesses.
I support common-sense measures that increase take-home pay
for workers, but I do not believe that increasing the minimum
wage is the best way to do so. I want to put more money in
workers' pockets, but forcing a government mandate for all
workers is not the answer. I believe that lowering taxes to raise
individual pay should be the goal, but it should not come at the
expense of small businesses and their workers. I would hope
that employers would pay their workers as much as they can
afford to, but it should not be dictated by the federal
government. Thus, while I am supportive of the strong
measures taken to provide significant tax relief to small
businesses, I will not support any measures that hurt
hard-working Texans.
The increase, while well-intentioned, has unintended
consequences. It actually hurts the workers it seeks to help.
Studies have shown that when the minimum wage goes up,
1 of 2
8/30/2000 5:25 PM
GOP.gov News: The Heart of Our West Texas Economy
http://www.gop.gov/item-news.asp?N=2000071115443
entry-level or low-level workers are the first ones to lose their
jobs. For example, after the last minimum wage hike in 1996,
the National Restaurant Association reported that the restaurant
industry cut 146,000 jobs and postponed hiring an additional
106,000 new employees due to the increase. In addition, almost
12 percent of workers receiving the standard minimum wage are
employed by health care providers or schools and universities
around the country. This increase will cost America's school
districts and hospitals $1 billion every year. An increase in the
minimum wage forces employers to make tough financial
choices- either cut operations, cut jobs, or raise prices.
Most Democrats favor increasing the minimum wage without
offsetting costs to small businesses that produce jobs. Raising
the minimum wage increases the cost of labor, forcing
employers to reduce the number of unskilled jobs available, or
go out of business. It also makes it more difficult for small
companies to hire more workers. According to the Congressional
Budget Office estimates, a wage increase of $1 would result in
losses of roughly 100,000 to 500,000 new jobs. For instance, a
business employing 10 full-time minimum wage workers which
is forced to increase wages a dollar per hour will pay an extra
$20,800 per year in employee wages. This proposed mandate
would cost consumers and workers about $6.5 billion over the
next two fiscal years as the highest costs of labor are passed on
to consumers.
I believe that wages should be decided on a local level, between
the employers and employees. The federal government should
not force a "one-size-fits-all" federal mandate. Demographic
needs for West Texas are obviously different from those in New
York City. Too often, Washington, D.C. bureaucrats think they
know best how to run your business. The federal government
should not impede small business growth or stifle the ability of
these businesses to provide much-needed and important jobs
for the local economy.
Representative J.C. Watts, Jr., Chairman
Republican Conference, U.S. House of Representatives
Privacy & Security Statement
2 of 2
8/30/2000 5:25 PM
Representative Tom Delay (R-TX)
"I hate it," House Majority Whip Tom DeLay, R-Texas, of the minimum wage increase. He
added, "Obviously, we don't have the votes to stop minimum wage, SO we ought to do
something that lessens the burden on people that pay the wages." [Espo, Associated Press,
2/7/2000]
Representative Dick Armey (R-TX)
"My line on the minimum wage is: Pain is inevitable and suffering is optional Minimum
wage is relevant to only one small group of workers in America, and that is the least-skilled,
least-experienced, least-trained workers." [Roll Call, 6/19/2000]
Representative Ron Paul (R-TX)
"If the minimum wage is the means to prosperity, why not go to $50, $75, or $100 per hour?"
[Arizona Republic, 6/4/2000]
Representative Jim DeMint (R-SC)
"What we're trying to do is not eliminate the training level or entry level jobs. A one-size-
fits-all wage for the whole country doesn't work anymore." (Rep. DeMint sponsored the
Republican bill's language requesting states be allowed to opt-out of the increase.) [Eilperin,
Washington Post, 3/9/2000]
Representative Larry Combest (R-TX)
I support common-sense measures that increase take-home pay for workers, but I do not
believe that increasing the minimum wage is the best way to do so. I want to put more money
in workers' pockets, but forcing a government mandate for all workers is not the answer.
Representative Tancredo (R-CO)
"I am opposed to increasing the minimum wage and voted against passage of H.R. 3846,
because study after study has indicated that raising the wage rate does not improve living
standards or increase wages." [Press Release, 3/9/2000]
Senator Don Nickles (R-OK)
"By raising the minimum wage, politicians would yank the ladder up too high for some
people to get on in the first place." [Potts, Daily Oklahoman, 5/4/2000]
Validators
The modest proposal people are talking about -- $1 over two years - is pretty close to what
would happen anyway in the marketplace," said Kevin Murphy, a labor economist at the
University of Chicago, who had argued in 1996 that the proposed increase in the minimum
wage, to $5.15 an hour, would cost jobs. [New York Times, 8/29/2000]
Representative Peter King (R-NY)
"The only reason to oppose an increase in the minimum wage is that it will cost jobs," King
said. "In this economy that's not a very realistic argument to make." [Povich, Newsday,
8/30/2000]
LEVEL 1 - 2 OF 24 STORIES
Copyright 2000 The Commercial Appeal
The Commercial Appeal (Memphis, TN)
August 27, 2000, SUNDAY, FINAL EDITION
SECTION: NEWS, Pg. A1
LENGTH: 1211 words
HEADLINE: BUSH ARGUES FOR STATE FLEXIBILITY ON MINIMUM WAGE
BYLINE: James W. Brosnan The Commercial Appeal; Washington Bureau; Staff
reporter Bill Dries contributed to this story.
DATELINE: WASHINGTON
BODY:
Southern states, which generally have been hostile to state minimum wage
laws, could get a chance to break away from the federal minimum wage law if
Texas Gov. George W. Bush is elected president.
While both Bush and Democratic nominee Vice President Gore say they support a
$ 1 increase in the minimum wage, Bush wants to let state legislatures pass
a smaller increase or keep their states or some counties at $ 5.15 an hour.
Bush argues a flexible minimum wage would give state officials a new tool
to create jobs in depressed counties and find work for people coming off
welfare.
Gore is expected to highlight his differences with Bush on the minimum wage
in Labor Day appearances next weekend.
In a preview, Gore told the NAACP annual convention last month that one of
the "true tests" of whether someone stands up for the people is "whether you
are for an increase in the minimum wage. I am for an increase in the minimum
wage for those who most need the help. And I'm not for a state's rights
provision to let states overrule an increase in the minimum wage.' "
In 10 New England and West Coast states, workers receive a higher minimum
wage; under federal law, employers have to use the higher wage rate, whether
state or federal. But among Southern states, only Arkansas, Virginia and
North Carolina have a state minimum wage equal to the federal law of $ 5.15 an
hour.
Many states have lower minimum wage rates that are applied to a handful
of occupations, including workers on small farms, summer camp counselors and
other seasonal employees not covered by the federal law. Several states,
including Tennessee and Mississippi, have no state minimum.
Tennessee Gov. Don Sundquist and Arkansas Gov. Mike Huckabee, both
Republicans, say they like Bush's idea but are reserving judgment on whether
they would want to go along with $ 6.15 an hour or propose a different minimum
wage for all or part of their states.
"We would have to consider the impact this would have on Tennessee to decide
whether we would participate or opt out, " Sundquist said.
"The key thing is that flexibility," said Huckabee.
Mississippi Gov. Ronnie Musgrove, a Democrat, said he opposes the Bush plan
because he wants a higher minimum wage to complement his plan to cut payroll
taxes by 5 percent for companies that agree to pay 125 percent of the average
county wage.
"We want higher paying jobs. We want better jobs," said Musgrove.
Signed into law by President Franklin Roosevelt in 1938, the minimum wage
began at 25 cents an hour and covered only manufacturing jobs, about one- fifth
of all workers. The last increase, from $ 4.75 to $ 5.15 an hour, went into
effect Sept. 1. 1997.
The House has passed a bill to raise the federal minimum wage by 50 cents
this year and another 50 cents next year. The Senate voted to phase in the $ 1
increase over three years.
But both bills are tied to deep cuts in business taxes that the Clinton
administration opposes, and labor officials are not as optimistic as they were
at the start of the year about getting an increase from this Congress.
Only about 3.3 million or 4.6 percent of the nation's 72 million hourly
workers are paid at minimum wage or less, but supporters say a $ 1 increase
would have an upward ripple effect, especially in low-wage Southern states.
Economist Jared Bernstein, of the liberal Economic Policy Institute,
calculates that a $ 1 increase in the federal minimum wage would directly
raise the paychecks of about 10.2 million workers, about 8.7 percent of the
workforce.
In the Mid-South, Bernstein said the increase would affect 227,791 workers in
Tennessee, 148,313 in Mississippi, and 150,071 in Arkansas, or respectively, 9.5
percent, 13.7 percent and 14.3 percent of the workforce.
In the Memphis metropolitan area, the increase would likely affect some
entry-level cashiers, retail sales personnel, janitors, waiters, cooks, health
aides and teacher's aides, according to a March 1999 survey of hourly wages in
the area by the federal Bureau of Labor Statistics.
Blue-collar workers average $ 12.23 an hour, and service occupations average
$ 8.55 an hour, according to the survey.
The booming economy and competition for workers means many jobs have higher
wages.
Larry Henson, vice president for research at the Memphis Area Chamber of
Commerce, said, "What we're seeing is that if companies come in and starting
wages are not market wages, generally they're not going to be able to get
anybody."
Henson said he's been in meetings where companies said they planned to pay $
6.50 an hour and chamber officials "just tell them flat out, you probably need
to go somewhere else."
The area's largest private employer, Federal Express, pays $ 9.66 an hour to
starting package handlers.
"The competition is fierce," said Elizabeth Sellers, chief human resources
officer for Campbell Clinic, an orthopedic physicians service with 270
employees. The clinic offers between $ 7.50 and $ 8 an hour for receptionists
and medical assistants.
Supporters of state flexibility argue a lower minimum wage would be most
helpful in areas that aren't experiencing the strong economy, such as rural
counties or some urban neighborhoods.
But Ray Bryant, executive director of the Lower Mississippi Delta Development
Center, said when the minimum wage comes up in talks about the Delta, it's
been about the need for an increase.
"I've never heard any discussion of a lower minimum wage, said Bryant.
On the other hand, Arkansas's Huckabee said that in some places, a business
owner is "barely making a profit" and would have to choose between paying higher
wages or letting employees go.
Some economists argue that studies have shown recent productivity gains far
outweigh wage inflation.
William Fox, director of the University of Tennessee Center for Business and
Economic Research, said, "It's possible that raising the minimum wage could
result in some job losses. I think the evidence is that it does not have much
impact in that range (up to $ 6.15) at all."
Union leaders are fiercely opposed to Bush's proposal.
"It's a cop-out on his part to not stand up straight for a minimum wage
increase. His position is that he's trying to have it both ways," said Jim
Neeley, president of the Tennessee Labor Council AFL-CIO.
Neeley predicted the National Federation of Independent Business would
quickly try to keep the rate at $ 5.15 an hour in Tennessee if given the chance.
Although NFIB hasn't taken a formal position on the state flexibility
provision, its manager of legislative affairs in Washington, Jim Hirni, said
it's easier to lobby at the state level and he likes the idea of states
competing for businesses.
State Sen. Steve Cohen (D-Memphis) said business would have an advantage in
the state Senate, which "tends toward a Republican or pro-business,
boll-weevil-type Democrat who is not concerned with industrialized workers."
State Rep. Paul Phelan (D-Trenton), vice chairman of the House Commerce
Committee, said there probably would be a movement in some of the state's
depressed agricultural areas to keep the minimum wage down.
To reach reporter James W. Brosnan, call (202) 408-2701 or send E-mail to
[email protected]
NOTES:
Campaign 2000
GRAPHIC: map;
SHNS graphic by Jonathan Boho;
Minimum wage rates Map shows states with minimum wage rates higher than
the Federal, states with minimum wage rates the same as the Federal, states
with no minimum wage rates, and states with minimum wage rates lower than
the Federal.;
Source: U.S Department of Labor
LOAD-DATE: August 28, 2000
INCREASING THE MINIMUM WAGE
March 10, 2000
New York Times: House Republicans pass "fatally tainted" bill
The House has passed a much-needed minimum wage increase of $1 over two years, but the
bill is fatally tainted by $123 billion in tax cuts that mostly benefit the wealthy. President
Clinton has vowed to veto the bill unless Congress strips away the tax cuts. Republican
leaders have resisted increasing the minimum wage, which at $5.15 an hour is well below its
buying power in 1980. But now they have modified their game plan, trying instead to hold a
wage increase hostage for tax breaks for high-income individuals. [Editorial, New York Times,
3/13/00]
The Atlanta Constitution: Republican tax cut is "massive retaliation" for wage raise
Republicans in Congress are demanding that President Clinton accept a large tax cut in
return for their support of a $ 1-an-hour increase in the minimum wage. It's political
blackmail, and Clinton shouldn't pay it. [Editorial, Atlanta Constitution, 3/13/00]
The News and Observer: Republican tax cuts take "pound of flesh"
It's simply astounding that Republicans in Congress want to spread a $ 1 per hour increase
in the minimum wage - from $ 5.15 an hour to $ 6.15 - over a three-year period, and to tie
that to a billion-dollar-plus cut in taxes on inheritance and for businesses. In other words:
OK, we'll give some of the hardest-working and most underpaid people in the country a
little salary boost, but here is the pound of flesh we want for it. [Editorial, The News and
Observer, 3/10/00]
USA Today: Congress' plan is a "mistake"
Congress wants to couple a $ 1-an-hour minimum wage increase with billions of dollars of
tax relief for the wealthy. That's a mistake, as is spreading the wage raise over three years
instead of two. [Editorial, USA Today, 3/10/00]
Washington Post: Republicans advocating "deceptively packaged tax cuts"
Congressional Republicans are seeking enactment of still another batch of deceptively
packaged tax cuts whose long-term cost the government cannot afford. The latest are to be
voted on today in the House in connection with a minimum-wage increase. The gloss is that
they will compensate small employers for the added cost of the higher wage. The fact is that
most of the benefit will go to other than small employers and has nothing to do with the
wage. [Editorial, Washington Post, 3/9/00]
Representative Dick Armey (R-TX)
"My line on the minimum wage is: Pain is inevitable and suffering is optional Minimum
wage is relevant to only one small group of workers in America, and that is the least-skilled,
least-experienced, least-trained workers." [Roll Call, 6/19/2000]
Representative Ron Paul (R-TX)
"If the minimum wage is the means to prosperity, why not go to $50, $75, or $100 per hour?"
[Arizona Republic, 6/4/2000]
Representative Jim DeMint (R-SC)
"What we're trying to do is not eliminate the training level or entry level jobs. A one-size-
fits-all wage for the whole country doesn't work anymore." (Rep. DeMint sponsored the
Republican bill's language requesting states be allowed to opt-out of the increase.) [Eilperin,
Washington Post, 3/9/2000]