Doom and Gloom: The Minimum Wage Hike

Yesterday marked the first day in more than 10 years that millions of minimum wage workers received a pay raise. Their hourly pay jumped from $5.15 an hour to $5.85, the first of three raises Congress approved that will bring the rate to $7.25 an hour in 2009. Despite that 70-cents per hour hike, the minimum wage is now at its lowest buying power in more than half a century.

Republicans and big business fought the increase tooth and nail, saying the higher federal minimum wage could mean fewer hours for employees, fewer pay increases for other employees, benefits reductions, job losses and waning job creation.

There was even an attempt to repeal the minimum wage. On January 24th, 28 U.S. senators (Republicans all) voted “yes” on an amendment from Wayne Allard (R-CO) that would have scrapped the federal minimum wage 69 years after its creation.

Fortunately, wiser heads prevailed and minimum wage workers have finally received a small raise. Now let's see if those doom and gloom predictions prove true. Or if those who made such predictions will admit they were wrong. I'm betting "No" on both.

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Even a Broken Clock....

Credit must be given where credit is due. One an average day, by the time that Governor Matt Blunt has his first cup of coffee in the morning he's probably done about ten things to piss me off. But this week, he stood up for voters & against members of his own party when he came out in opposition to maneuvers to gut the recently passed Minimum Wage initiative. While agreeing that some tinkering was necessary, i.e., reinstituting overtime exceptions for some types of employees, he voiced opposition to efforts to eliminate annual raises to the minimum wage, tied to changes in the Consumer Price Index.

"I don't think we should make any other alterations to the ballot measure, " Blunt said. "It passed overwhelmingly in virtually every part of the state. Missourians have spoken. I think it would be a mistake to make changes beyond just addressing this emergency responder issue."

Now we'll just see if (un)Representative Shannon Cooper would like to stand against his party's leader, as well as the will of 3/4 of the state's voters. Since his approval ratings still hover around 40%, Blunt does not have much power to threaten wayward members of the GOP. Still as much grief as I give the man, I have to give credit when he comes out on the right side of an issue, even if it is especially politically expedient to do so.

Cross posted at Welcome to the Revolution

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House Minority Whip Blunt Against Minimum Wage

Since Roy and his Boy are from the city in which I reside (as is John Ashcroft, plus Jerry Falwell went to college here) I'll try to keep tabs on him. As expected, Blunt has come out against legislation that would raise the federal minimum wage.

"The last thing Congress should do is pass legislation that imposes an unfunded mandate on small businesses that employ millions of American workers and are the backbone of our economy," Blunt said in a statement.

"Small businesses create good jobs, and often provide families with health care and other essential benefits. Congress has an obligation to protect job creators and the workers they employ by ensuring that any effort to raise the minimum wage is balanced with protections that enable employers to continue to provide jobs and benefits for workers," Blunt said.

"As Senate Democrat leaders have agreed, these protections are critical for moving a minimum wage increase. A number of House Democrats have voted in the past for these important worker protections. It is my hope that the same group puts partisanship aside, agrees with their Senate colleagues, and votes to protect workers and job creators."

Blunt doesn't use all the Republican talking points on this issue, but he does stick with a few. I especially like the "unfunded mandate" claim. Wonder if Rep. Blunt feels the same way about his own Congressional pay raises, which have totalled more than $31,000 since the last increase in the federal minimum wage.

The current federal minimum wage is $10,712 a year. Congressional pay has increased by just shy of three times that amount in the last 10 years. Considering the far less-than-40-hour work week for Congress, I'm surprised Rep. Blunt hasn't returned his pay raise.


And thanks to Blue Girl for "inviting" me to participate on this blog (quote: "Strannix, you and Doc Larry don't get to decline, I need help with the Ozarks, and I'll hunt you down with dogs!"). Talk about mandates!

Reporting for duty, sir?

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