Madam President, I ask unanimous consent that the order for the quorum call be rescinded. Madam President, I want to take the floor today because I am very disturbed by the apparent shift in attitude…
Madam President, I ask unanimous consent that the order for the quorum call be rescinded.
Madam President, I want to take the floor today because I am very disturbed by the apparent shift in attitude by many elected leaders, including some in this body and in the House--the attitude towards people who do the work that makes this country run. They do not sit behind desks. They do not wear coats and ties every day or wonderful clothes. They do not sit in air-conditioned offices. They do not clip coupons. They just do hard work. They are the people you run into every day when you go into the local coffee shop and you order your latte. Maybe you see them when you go out and have lunch at a restaurant or you hail a taxi. Maybe you get on a bus or the subway. Maybe now, since it is near Christmas time, you go to a department store to do your Christmas shopping, and it is that person standing behind the counter.
You think that person is only there for you when you go in there to buy your Christmas present. Think about it. She has probably been standing there all day long, and after you get out of there, she is still standing there to wait on somebody else.
That is who I am talking about. They are not the big wheels in our society. They never thought of themselves as being big wheels, but they are the cogs and the inner workings that make our country run.
There used to be fairly universal agreement that these people are the backbone of this country and the foundation of our economy; that our job as elected officials is to do all we can to ensure that all working Americans have a decent shot at the American dream. We used to agree that if someone worked hard and played by the rules, they should be able to earn enough to support their family, keep a roof over their head, put some money away for a rainy day, and have a secure retirement. We used to agree that if one loses their job through no fault of their own, especially at a time of chronically high unemployment, they should have some support to get them through the rough patch while they are looking for new work. We used to agree not too long ago, on both sides of the aisle, that no child in this country should go to bed hungry at night. I say both sides. I remember McGovern and Dole, Dole and McGovern, and the great work they did on hunger in America.
In recent years, it has been alarming to see how these fundamental principles and values are being attacked in our public discourse. For many, the new attitude is: You are on your own. If you struggle, even if you face insurmountable challenges, well, it is probably your own fault.
It just seems to me that there is a harshness in our land, a harshness that I think of as sort of borne of a benign neglect toward those Americans who have tough lives, may be ill-educated, marginally employed or they are just down on their luck. It used to be we only heard harsh rhetoric such as that from radio talk show partisans trying to get their ratings up. Sadly, it has now become a part of our everyday conversation, even in the Congress.
We hear how minimum wage workers don't deserve a fair increase because they are just not worth $10.10 an hour. We hear that unemployed workers should be cut off from unemployment insurance because they are becoming ``dependent.'' At a time when there are three job seekers for every job, we hear it is critical to take away food assistance from millions of individuals so that, supposedly, if we take away their food and take away their unemployment insurance, they will now somehow learn the redemptive power of work. As if young mothers working service jobs, laid-off factory workers delivering newspapers, unemployed families receiving SNAP benefits--that somehow they need to be lectured by Members of Congress about work. These people know what it is like to work.
What happened to our respect--our respect for the people who do the work and want to work in our country? What happened to our values, basic moral truths that people shouldn't go hungry in the richest country in the world? Whence comes this harshness of ours, reminiscent of the late 19th century workplace in America? How did we get to the point where many of us value the work of day traders pushing paper on Wall Street, but we ignore the contributions of the people who work in our daycare centers, educate our kids, care for our elderly in the twilight of their lives? What about their value?
I wish the people who are pushing this harsh rhetoric would talk to Terrence, a father of three in Kansas City, MO. He works 50 hours a week. Don't lecture him about working. Fifty hours a week, two jobs-- one at Pizza Hut and one at Burger King--to try to make ends meet. He can barely insure his 15-year-old car or purchase shoes for his three girls. Last year, he lost his house. He told the Washington Times:
We work hard for companies that are making millions. We're
not asking for the world. We want to make enough to make a
decent living. We deserve better. If they respect us and pay
us and treat us right, it'll lift up the whole economy.
I will bet Terrence never got a degree in economics, but he says it better and understands it better than a lot of these economic thinkers down at our big banks and these economic think tanks.
They should speak with Edward, a father in Illinois. Both he and his fiancee earn the minimum wage. He said:
We have three children and our paychecks combined barely
cover the necessities like a roof over our heads, gas and
lights, and clothes for the kids. We wouldn't be able to make
it without government assistance like food stamps and a
medical card. There is constant stress because we are living
paycheck to paycheck and never have enough money. Everyone
needs help sometimes, especially since the economy is so bad
and it has made life even harder for working people. This
isn't about needing more money for luxury things, we need a
raise in the living wage in order to survive.
Edward and Terrence clearly are not lazy. They are doing exactly what we might expect them to do, what we have told them they must do to make it in this country. But they are slipping further and further behind, through no fault of their own.
The fact is our economy has changed. It is not working for many families right now. We can't stick our heads in the sand and pretend it is not true. We shouldn't suggest it is Edward's and Terrence's fault or that their kids don't deserve to eat or to wear shoes.
We as elected officials have an obligation to recognize the fundamental truths about the challenges working families face in America. We have a duty to support policies which will help these families both weather the continuing economic storm and also build a brighter future for their children.
First, we have to acknowledge the truth that while we are slowly moving in the right direction, the economy has not recovered, especially for those at the bottom of the economic ladder, the Edwards and Terrences and others. Jobs are still scarce. Four million people have been pounding the pavement for at least 6 months looking for new work. There are three job seekers for every job. Our economy is still millions of jobs short of what we need.
In the past when the job market was this challenging, politicians on both
sides of the aisle agreed the Federal Government had an obligation to step in and help the long-term unemployed while they are struggling to find work. In fact, the current Federal Unemployment Insurance Program was put in place in 2008, under a Republican President, George W. Bush, and we did it when the unemployment rate was 5.6 percent. Today the unemployment rate officially is 7 percent. We know it is higher. That is the official rate. But unofficially, if we include folks who want to work full time but can only find part-time work, those who have given up actively looking for work, the rate is actually 13.2 percent. That is the real unemployment rate in America.
So given that the unemployment rate remains high in many parts of the country, my colleague Senator Jack Reed and I have introduced a modest proposal to extend the current system of federally funded extended unemployment insurance until the end of 2014. It is vitally important that we do so because it is going to expire in 2 weeks. Almost 5 million American workers will exhaust their State unemployment insurance and lose their last lifeline before the end of next year. We are their last lifeline. They are counting on us. How can we think about turning our backs on them?
But instead of joining a call to action, some of my colleagues on the other side of the aisle are actually suggesting that an extension of unemployment insurance will hurt jobless Americans. I was rather shocked when I heard this from our colleague from Kentucky, Senator Paul, on a Sunday talk program. Here is what he said:
When you allow people to be on unemployment insurance for
99 weeks, you're causing them to become part of this
perpetual unemployed . . . group in our . . . economy, and .
. . while it seems good, it actually does a disservice to the
people you're trying to help.
A disservice? I don't understand this kind of harshness for people who are out of work, who have paid into unemployment insurance and they are seeking now to get their insurance payments. First of all, this 99 weeks is not quite right. The maximum is 73 weeks, and that is only for those who have been unemployed the longest and it is only in two States. Only two States have 73 weeks. Those are the two States with the highest unemployment rates. The rest of the States have access to, at most, 63 weeks. In my State, Iowa, it is only 40 weeks, not 99.
Secondly, unemployment insurance is a desperately needed program. Let's be clear, unemployed workers are not living high on the hog on these insurance payments which average about $310 per week nationally. If you are on it for 1 year, that averages about $15,000 per year. There are some that are less than that. Mississippi, for example, is $193 a week. The truth is they are barely subsisting, barely hanging on, not sitting around watching TV. Why? Because there is only one way you can collect unemployment insurance benefits. That is, No. 1, if you have worked and paid into the system. So you have already earned the right to access the insurance you paid for. Secondly, you can only collect on the insurance if you are actively looking for a job.
So contrary to the statement of my colleague from Kentucky, it is not a disservice to provide this meager benefit to the long-term unemployed, a benefit which they have earned. The only disservice is to float this absurd myth that jobless Americans want to be unemployed. I think it is offensive to suggest they are lazy and don't want to work. To me, it is morally repugnant to conclude that they will somehow be miraculously better able to find a job if we simply let their kids go hungry.
That same harsh kind of thinking has also crept into our national debate about the most fundamental aspect of our social safety net--food assistance. Millions of American families depend upon the SNAP program, the Supplemental Nutrition Assistance Program. It is what everybody thinks of as food stamps. Such a basic thing, having enough to eat, in this country. Again, many of these people are in working families.
In 2011, 41 percent of SNAP participants lived in a household where someone was working. Over the last several years, my Republican colleagues have sought again and again to slash food assistance for these families.
The House-passed farm bill, engineered by Republicans in the House, proposed cutting food stamps by $40 billion over the next 10 years. Contrast that to what we passed in the Senate. Under the leadership of Senator Stabenow, we passed a farm bill which made some cuts over 10 years of a little over $4 billion. That was supported by most people on both sides of the aisle. The House bill was only supported by the Republicans: Forty billion the Republicans wanted to cut versus $4 billion in the Senate. That would have cut 3.8 million individuals from the SNAP program next year.
Other parts of their proposal would have cut off food stamps and benefits in the future for some of the poorest adults, many of whom SNAP is the only income assistance they have or it would result in throwing 210,000 children out of their free school meals program, raising the level so low-income kids would be cut out of their free lunch program.
Yet another provision the House Republicans put into their bill would have provided strong financial incentives to States to kick people off the SNAP program. The House farm bill would allow States to cut off SNAP benefits to most adults receiving or applying for SNAP, including parents with children as young as 1 year old, if they are not working or participating in a work or training program for at least 20 hours a week. That was it. There was no exclusion for mothers with little kids.
The House bill meant that mothers with young children still in diapers could be cut off from the SNAP program even if they don't have affordable childcare. Imagine that--forcing a mother to choose between employment and safe child care for her child. That is harsh.
As I said, this is not realistic. We already said there are three job seekers for every job, and 48 States have a waiting list for our largest training program, the Workforce Investment Act. Are we going to tell a young mother with a child who can't get adequate childcare that she has to be in a job training program? The lists are so long that you can't get in. Are we then going to tell her that she has to work? There are three job seekers for every job. What is she going to do?
Never mind reality. Somehow Republicans seem to think that denying food assistance will magically make people find jobs despite the fact that jobs don't exist. Getting people into the workforce will require a stronger, growing economy with real jobs and strong job-training programs that really will help people get ahead. Promoting draconian cuts to SNAP programs under this benign-sounding work label does not make the effect any less harsh.
What we have seen in recent years with respect to the SNAP program are not concerted and sincere efforts to help people leave the SNAP programs because they have gained employment or because our economy is get stronger; quite the contrary. Many Republicans want to eliminate food assistance for families without regard for the true nature of the economy or the effect on those families. In addition to acknowledging the fundamental economic truth that our job market has not adequately recovered--and for many Americans, programs such as unemployment insurance and food stamps are essential to basic survival--we also have an obligation to face another, perhaps even more alarming, economic reality. For those at the bottom who are working and playing by the rules, it is not enough.
Hard-working people who are working full time--sometimes multiple jobs--are not getting paid enough to make ends meet. Full-time workers are living in poverty. Families are living in poverty. They go to work every day. This is a fundamental failure of our economy. It is something I believe we have a moral obligation to address by fixing and raising the minimum wage in America.
I have introduced a proposal that I have worked on for a long time with Congressman George Miller in the House--the Fair Minimum Wage Act. It would gradually raise the minimum wage from $7.25 an hour, where it is now, to $10.10 an hour, then it would link the minimum wage to the cost of
living in the future. It would be indexed.
We would also provide a raise in the minimum wage for tipped workers, which has not been done in more than 20 years.
Let's look at what happened to the minimum wage. If we kept the minimum wage at the same level when adjusted for inflation, and made that adjustment based on the minimum wage for 1968, which was a pretty good economic year, the minimum wage today would be $10.75 an hour. It is now $7.25 an hour.
You wonder why there are more people on food stamps. Look at what's happened. By the way, these are people who are working, and they are people you see every day. You see them every day when you go in to get that coffee, go to that lunch counter or that department store. You see these minimum-wage workers every day. If you have daycare for your kids, you probably see them there too.
Again, if we kept at this level, that family making minimum wage would have an additional $7,000 every year to spend on necessities. It is no wonder that working people turn to the safety net. In fact, a recent study found that taxpayers have to pick up the tab for millions of working families who are getting minimum wage. We have to pick up the tab to the tune of about $243 billion a year. Why? That is what we pay for food stamps, Medicaid, and the Children's Health Insurance Program, the Earned Income Tax Credit Program, and Temporary Assistance for Needy Families. Taxpayers are picking up the tab to the tune of about $243 billion.
If you want to say who benefits from an increase in the minimum wage, it is not only the people who are making the minimum wage, taxpayers will benefit too because a lot of this would fall by the wayside because people wouldn't qualify any longer for the safety net programs.
Businesses will benefit too. The biggest problems for businesses-- especially small businesses--is the lack of consumer demand and poor sales. If you put money back in the pockets of low-income workers, that will be a boon to small businesses, and it will be a boon to businesses on Main Street because that is where they will tend to shop.
Many of these low-income workers don't drive out to the suburbs. A lot of them don't go online and buy at amazon.com, but they will go to their neighborhood stores, and that is where they spend their money.
In a poll earlier this year two-thirds of small business owners said they support raising the minimum wage because they know it will help increase consumption and reduce pressure on taxpayer-funded public benefit programs.
We always hear the claim that if you raise the minimum wage, it will cost jobs. That is just not true. The most sophisticated empirical economic research conducted over the last 2 decades has shown repeatedly that minimum-wage increases do not cause job loss--not generally, not among teenagers, and not among restaurant workers.
In short, history shows us time and again that despite all the cries of doom and gloom from richly paid lobbyists and well-funded trade associations, there is simply no real negative economic consequences from an increase in the minimum wage. To the contrary, the benefits are enormous.
The Economic Policy Institute estimates that our bill would pump an additional $22 billion into the gross domestic product, thereby supporting 85,000 new jobs, and giving workers an additional $35 billion to spend over the 3 years of the implementation, and, of course, more beyond that.
Fourteen million children in America will have a parent who gets a raise because of increasing the minimum wage. Again, this makes a real difference in people's lives. They are not going to the Riviera. They are not taking vacations to the beach.
Fifteen million women, 13 million men, 4 million African-American workers, 7 million Hispanic workers, and 7 million parents will get a raise. It is going to make a real difference in their lives.
A boost to $10.10 would mean an extra $6,000 a year. Think about what that would mean for someone who is making the minimum wage, which puts them at $14,000 to $15,000. After 3 years of implementation, they would get $6,000 more a year, which amounts to 7 months of groceries, 6 months of rent, 1 semester at a 4-year public university or 1,600 gallons of gas. That is a real difference.
I have heard some say that they think the Earned Income Tax Credit should be the answer to the problem of low wages. What this overlooks is that the Earned Income Tax Credit only helps families with children. Childless adults who work full time at the minimum wage actually earn too much to qualify for the Earned Income Tax Credit. The minimum wage is not enough for a single person to survive on.
Moreover, just relying on the Earned Income Tax Credit would simply shift more costs to the taxpayers rather than requiring employers to pay a fair wage. It would actually incentivize employers to pay even less in wages, even to workers who don't qualify for EITC.
The minimum wage raise we are proposing is particularly important for millions of tipped workers. They will receive a raise for the first time in 22 years. Workers who receive tips will get a raise in their base wage. These include not only restaurant servers, but also nail salon workers, pizza delivery drivers, coat checkers, parking attendants, and many more.
Right now, under our current Federal law, employers are required to pay only $2.13 an hour to tipped workers. So rather than supplementing wages, tips have actually, over the last 20 years, replaced wages, which is insecure for workers. It often leaves them in poverty. There is no predictability when counting on tips. Often workers go home with only tips because tax deductions canceled out their cash wages.
This is an actual copy of a real check made out to a restaurant worker in the District of Columbia. It is a paycheck. The check date is 8/5/2013, and it says $0.00. This is made out to a real person. She got a paycheck for $0.00. Why? After they took out her withholding and FICA taxes, she didn't make enough to get paid. Some people might say, well, she got tips. Maybe. But anyone who gets tips can tell you one day they are up and the next day they are down. Sometimes they are good; sometimes they are not.
How do you budget on that? That is like saying the Earned Income Tax Credit. I have already pointed out the fallacy of that, but that only comes a year later. I am talking about--how do you live from paycheck to paycheck when your paycheck is zero? You can't make plans based on your budget, and you can't raise a family based on it. No one who works for a living should come home with a paycheck that says $0.00 when they have worked over 40 hours a week.
My bill would establish a fair balance between wages and tips by slowly--over 6 years--lifting the base wage for tipped workers from $2.13 an hour to 70 percent of the minimum wage. That is more in line with how the wage for tipped workers worked in the decades that have since passed.
The National Restaurant Association claims it can't afford to raise these wages. They say that every time we propose raising the minimum wage. The National Restaurant Association opposes any minimum wage increase at any time. But they can afford it.
In fact, the last minimum wage increase from 2007 to 2009, which meant raises for workers such as bussers, kitchen staff, and others who don't regularly receive tips, didn't hurt the industry. But they said so at the time. Here is what they said in 2007. When we were here debating an increase in the minimum wage, here is what they said: ``A minimum wage increase will cost our industry jobs.''
That is what they said in 2007.
Flash forward to 2012. Here is what the restaurant industry said: ``The restaurant industry not only provided much-needed job growth during the sluggish last decade, it also is poised to post steady growth well into the future.''
They can't have it both ways. This is the truth, that they provided job growth during that time. More power to them. But don't come and tell us that an increase in the minimum wage and an increase in the minimum wage for tipped workers is going to cost them jobs. That just doesn't hold.
I will close with one more statement from a real worker whose life will be improved if we step up and support the people who work in our country. She has a lesson for us. Jackie Perkins works at a restaurant in Denver, CO, and she says:
You are talking about real people. You sit in your ivory
tower in the legislature and talk about economics, numbers,
jobs, but what you don't understand is there are real jobs
and real workers who have families that they need to support,
and raising the minimum wage helps me support myself and my
family and to advance and to achieve the American dream.
So I believe in Jackie's dreams and those of all of these hard- working Americans, as I said earlier, who make the country work, who make it operate. As we look ahead to the Christmas season and the new year, I hope all my colleagues will take time over the holidays to think about all the blessings we have been given and all that we should be thankful for. I hope we put ourselves in the shoes of these working people who just want to build a better life for themselves and their children. Think about the minimum wage retail worker we see when we go into the store to shop for that Christmas present, who works hard running that cash register, standing on her feet all day, and she can't even afford to shop in her own store. Think of the unemployed worker who must go to the local food bank because he can't find a job. The food stamps have run out and he can't afford that nice big turkey and all the dressing and everything else for Christmas dinner.
I will close where I started. We have to stop being so harsh and having these harsh attitudes toward people at the lower economic end of the spectrum. They have value too. Their lives have value. Their work has tremendous value. The country couldn't exist, couldn't operate without people such as they.
So let's refine our public policies to be a little bit more considerate, a little bit more compassionate, a little bit more understanding of the tough lives some people have in our society. Let's have a compassion that is borne of an understanding that we are so privileged to live in the richest country in the world. We can afford to make sure people have enough food to eat. We can afford to make sure people who are unemployed get unemployment insurance benefits next year. We can afford that. We can afford to increase the minimum wage. We can afford these things, and we will be a better country socially and economically if we do so.
We have a duty, I believe, to put ourselves in their shoes. We have a duty to make sure people who do the work such as that in our country get a fair chance to aspire to the American dream.
So I hope we all have a good holiday season--Christmas and New Year's with our families and our friends. I hope we take time to pause and reflect also, as I said, on our blessings and our obligations toward people who may not be as fortunate as we are. I hope when we come back we will support a strong food assistance program, a deserved and long overdue increase in the minimum wage, and an extension of Federal unemployment insurance, and let's have a new year that is filled with less harshness and a little bit more compassion and understanding for our fellow Americans.
I yield the floor.
Mr. President, as chairman of the Health, Education, Labor and Pensions Committee, which holds jurisdiction over the servicing of our Federal student loan programs, it is my understanding that the intent of the budget agreement is to allow for the continuation of the existing not-for-profit servicer contracts and that they will be permitted to compete based on performance with the Department of Education's title IV servicers for additional accounts, so that students receive the best possible service and taxpayer funds are used efficiently.