Tag Archives: Economic Policy Institute

Vote For $10.10: Wendy Davis Pledges To Raise Texas Minimum Wage

Texas is often heralded for being the most prolific job creator in the United States.  One look at the basic employment rolls reveals that in itself, that is a true statement.

What is often missed in that purely quantitative assessment of the roaring Texas job factory?  Too many Texans are forced to work in low-wage jobs that have no benefits, and are living paycheck to paycheck with little ability to meet their most basic needs, much less plan for their future.  This is the painful reality that occurs in a state that has encouraged corporations to put profits over people for far too long.  As revealed in a recent study by The Economic Policy Institute (via Fortune Magazine), it turns out that Texas needs an increase of the minimum wage more than any other state…

Which state needs a minimum wage increase the most?

The Economic Policy Institute tried to answer this question by examining how many state residents would be directly affected by a minimum wage hike to $10.10 and what sort of state stimulus such a raise would produce.

After crunching the numbers, there was a clear winner: Texas, where the current minimum wage is the federally mandated $7.25 an hour.

Out of an estimated total workforce of nearly 11 million in Texas, a $10.10 minimum wage would directly affect 1.95 million people – in other words, that many Texans would get a raise because a $10.10 wage would surpass what they currently make. (Another 920,000 Texans would be indirectly affected since they make just above $10.10 and a minimum wage hike would likely adjust pay scales overall.)

With so many Texans struggling to make ends meet, one would think that calls to raise the state’s minimum wage would be growing louder. In recent months, there have been several prominent protests from national sources, but not as much organizing done exclusively at the state level.

The grand irony here?  Raising Texas’ minimum wage wouldn’t just benefit low-wage workers, but would likely be a huge boon to business across the state as well.  Here’s more on that, again from Fortune Magazine…

What outpaces other states even more is the economic benefit that Texas would receive from a $10.10 minimum wage. The EPI estimates that the state would see a gross domestic product impact of $3.1 billion, that’s nearly $2 billion more than the potential stimulus in Florida — again the runner-up.

It’s not just the total number of workers in Texas – the second most populous state in the U.S. – that puts the state in this position. It’s also the state’s incredibly large low-wage workforce. According to the Bureau of Labor Statistics, there are 400,000 workers in Texas whose hourly wage is at or below the federal standard of $7.25 – more than double that of any other state. While that’s a lot in absolute terms, it also represents a large portion of the state’s overall workforce: 6.4% — the fifth highest percentage in the country, behind Tennessee, Idaho, Arkansas and Alabama.

Many business leaders have figured out that raising wages is good for them.  Take for example Buc-ee’s… the gas station and knick-knack chain that is quickly becoming a Lone Star institution.  Key to their undeniable success?  The fact all workers are paid wages starting at $11.50 per hour.   Contrary to all the horror stories people tell about stores collapsing if they’re forced to pay employees more, and prices of goods surging out of control, Buc-ee’s is doing just fine.

Right now, people in every corner of the Lone Star State are making critical decisions in the voting booth about education, health care, and future government priorities.  Though the actual minimum wage may not be up for a vote in 2014, you can be sure that this issue is on the ballot.  If you support raising the minimum wage for the state of Texas, then you should also support Wendy Davis… the only candidate that has pledged to do just that.  As a former minimum wage worker and single mom, she knows that even if politicians and news media aren’t always talking about it, establishing a living wage for Texas will have a drastic effects on millions of people’s lives.

Here’s what Davis said last month, via the Victoria Advocate

Raising the minimum wage suddenly became a hot issue in the Texas governor’s race just after Labor Day, with Democrat Wendy Davis endorsing it, and Republican Greg Abbott opposing it.

The national campaign by fast-food workers calling for raising the minimum wage helped spark the discussion.

“I’ll fight to raise the minimum wage from $7.25 to $10 because this is a family issue,” Davis declared Thursday at a rally at the University of Texas-San Antonio, during her multicity tour of universities.

“Half of the 2.8 million people in Texas who would benefit from an increase in the minimum wage are supporting families,” Davis said.

“$7.25 an hour is $15,000 a year, and I know from experience that is not enough to support a family,” Davis said.

Leticia Van de Putte, the Democratic candidate for Lieutenant Governor, also supports raising the state’s minimum wage.  As the state’s highest elected officials, Davis and Van de Putte would truly have the ability to bring this need to light and commit the legislature to a wage increase.

On the other hand, Davis’ opponent Greg Abbott remains a vigorous defender low-wages for the Lone Star state.

A lot of people think that elections don’t matter, or that their vote isn’t going to make a difference in an election.  But in 2014 for the state of Texas, that couldn’t be further from the truth.  If Texans show up to the polls during Early Voting and on Election Day, they will have Wendy Davis as Governor.  And that decision could result in a living wage for literally millions of people.  This time, it’s just too important to sit out.

‘Can’t survive on $7.25?’  Then vote for Wendy Davis and Leticia Van de Putte.  Vote for $10.10.  

 

Minimum Wage Misconceptions

Like most teenagers, I was not only excited to have my first full-time job, but proud to know that I had reached a significant milestone in my life. I didn’t have to rely on my parents for every want and need anymore. By having a job, and making my own money, I was able to contribute (in a very small way) to the household income, even if it was just by asking them for less spending cash directly. The minimum wage was a staggering $5.15 per hour back then, and I thought was really living the life by getting hired at $5.25. A full 10 cents higher!! I’ll never forget going to pick up my first paycheck of thirty-two dollars and fifteen cents. No great sum by any measure, but being my sum it was great to me.

I’ll also never forget the first time I worked the day shift at my job… a Sonic Drive-In in my hometown of Benton, Arkansas. Unlike the boisterous teenagers that ruled the store at night, Sonic’s day crew was very different. Most of them were older women who were at the store all day, working as many hours as they possibly could. I remember times when I would practically beg for extra hours, and asked my manager if I could work on Saturday mornings. She would always say “not unless you’re called in.” When I asked why, and was persistent, she would say “because they need the hours more.”

I didn’t understand it very well back then, but now those situations make a lot more sense. My managers weren’t being mean. They knew that the adult crew’s hours were truly a need, and not just a teenage want. As David Cooper and Dan Essrow of the Economic Policy Institute explain, the experience most Americans had with minimum wage work in their teens does not reflect the reality of those trying to survive on those wages. A full one-third of all persons working for minimum wage are over the age of 40. That means they aren’t just working to earn money for Friday night, but are struggling to support their families and put enough food on the table so that everyone can eat. They are trying to stem the tide of a constant stream of crises… hoping the car will run until payday, praying for their child to not get sick because they can’t afford to go to the doctor, praying that the lights will stay on until the end of the month. What seems to be petty annoyances to most in the middle class are a full-blown catastrophe to those making minimum wage.

No better place to witness these struggles than the Lone Star State. According to the Dallas Morning News, Texas is “king of the crop” for minimum wage earnings. Of the 3.6 million workers making the federal minimum, 452,000 of them are Texans. And though Texas is still one of the cheapest places to live in the United States, it may not be that way for long. The cost of living in cities like Austin has risen rapidly, with the state’s other big metros not far behind. Adding insult to injury is the fact that poor Texans continue to be denied vital assistance with healthcare, thanks to Governor Perry and Attorney General Abbott’s refusal to expand Medicaid. Despite what many say to the contrary, Texas’ working poor are struggling just like those in other states.

As we enter a new year, it’s time for the country to get out of that ‘teen mindset’ on the minimum wage, and start finding the reality around us. Sure, the minimum wage is probably higher than when most of us were in high school. The problem with that? Everything else is too.

Disappointing Jobs Numbers: For once, Reince is right

Well there you have it folks. For the first time in many months, the US unemployment rate has climbed up to 8.2%. The net gain of the US economy was a measly 69,000 jobs during May. April’s job numbers were also revised downward. UGH.

For once, I have to agree with RNC Chairman Reince Priebus… No sense in demonizing the guy when he’s correct…

I couldn’t have said it better myself. A plurality of Obama’s jobs policies “simply are not working.” Funny thing about jobs policies though… they require a little something called ACTION, preferably by the Congress. The President can make plans, give speeches, and greet workers all he wants, but the true weight of the govenrnment lies in how Congress makes laws and applies financial resources of the United States.

If the Obama policies had been carried out, then we would be investing in our nation. All those bad roads and dangerous freeways that you drive on? President Obama’s policies would hire workers to fix them. Difficulties in our public schools? President Obama’s policies would hire more teachers and support staff to help our kids and make our schools better. Tired of having debit or credit card fraud? President Obama’s policies would empower agencies to protect consumers from an ever-growing crisis of electronic theft. Obama wants to create jobs, and he’s put for initiatives to do so since his first day in office. But Congressional Republicans have cried, whined, screamed and threw temper tantrums to stop his policies in their tracks. Yet now, they’re blaming HIM for the meager Recovery. As Steve Benen so eloquently points out, had the American Jobs Act been passed back in 2011, 1.3 million more people would be employed today. President Obama gave a rousing speech, only to have it killed by Congress. House Speaker John Boehner didn’t even bring the bill up for a vote, and it was filibustered by Senate Republicans.

Just so we’re clear, here’s a reminder of President Obama’s policies…

Mitt Romney loves to talk about “job creators”, it’s really one of his favorite phrases to cite. Though it’s odd to me that he NEVER mentions the nation’s largest job creator: the Government. Tens of millions of people work for federal, state and local government agencies. The government isn’t some evil villian just lurking around the corner to ciphon your money. It’s YOUR schools, YOUR policeman, YOUR firefighters, YOUR roads and bridges… I could go on and on. Yet Republicans have waged a war on the same government that they in fact work for. If they had their way, the government would slice and dice millions of jobs. According to the Economic Policy Institute, if the Ryan budget is enacted, it would eliminate 4.1 million jobs by 2014. If the current GOP plans go into place, it would be nothing more than economic genocide to our country. Romney’s “solution” to our job woes is to adopt this budget and decimate many American social programs that people depend on today more than ever. One thing is for sure… Democrats continue to lose the messaging war about government employment. If you want more of your friends and neighbors to lose their jobs, that’s what the Ryan budget seeks to do.

It’s easy for the GOP to talk tough when it comes to the economy, but they continue to flee from the truth of the matter. But on this tweet, Mr. Priebus and I do agree… Obama’s policies are not workng because they have not been applied. Think about it this way. You may buy a new treadmill and say “I’m going to get in shape.” You buy it, and put it in your room. But how are you going to get in shape if you don’t ever USE it?