Madam President, we are now debating legislation that will be up for a vote tomorrow. It will be a cloture vote on bringing a minimum wage increase bill to the floor. Let's be clear about this. It is…
Madam President, we are now debating legislation that will be up for a vote tomorrow. It will be a cloture vote on bringing a minimum wage increase bill to the floor.
Let's be clear about this. It is a cloture vote. This means it is going to take 60 votes, and that will happen tomorrow. I assume most of the day we will be discussing that. I hope so. I know others have come to the floor previously to discuss this.
As the chairman of the committee and as the chief sponsor of this bill, I intend to be back on the floor later today to respond to some of the allegations made by Senators on the other side of the aisle regarding this bill and minimum wage as a concept, but I wish to take a few minutes to sort of set the stage for this legislation and what it is going to mean for our economy and for working Americans.
What I would say at the outset is that the minimum wage bill is about a lot of things: It is going to give an economic boost. It will increase the GDP of our country. It will do a lot of good economically for our society, but basically it is about economic fairness. It is about what kind of society we want America to be.
Keep in mind, the Fair Labor Standards Act which set the minimum wage was passed at the end of the Depression, 1939, when we were still in the Depression, and it was immediately to give a raise in wages to hard-working Americans. That is what it did.
Since that time, actually on both sides of the aisle, we have raised the minimum wage a number of times. This is just another step in making sure that those at the bottom of the economic ladder in America also get a hand up, to get help to make sure they too have a fair shot at the American dream.
So that is what this minimum wage bill is truly about. It is about core American values; the value that no one who works full time all year long should live in poverty. That is what this is about.
The fact is the value of the minimum wage has eroded so much over the last few years that the minimum wage right now is way below poverty. In other words, someone can work full time every day, all year long, and they are still in poverty. But they are working every day. That is not fair. The American value system is one that if someone puts in their work and works hard, they ought not to be living in poverty.
Right now, tens of millions of Americans are struggling just to keep a roof over their heads, to pay the heating bill, to find some money for an extra pair of shoes for a growing child, even getting money together to take the bus to work. Think about this: A minimum wage worker's paycheck has stayed the same since 2009. This chart illustrates what has happened.
If we go back to 2009, the minimum wage has increased zero percent. But
look what has gone up: Electricity has gone up 4.2 percent; rent, 7.3 percent; auto repairs, 7.6 percent; food at home, 8.8 percent. This is since 2009. Childcare has gone up 11.7 percent. Mass transit, which is how people who make minimum wage get back and forth to work, has gone up 17.8 percent since 2009. Yet their paycheck has not gone up.
What does this chart tell us? This tells us that people making minimum wage are falling further and further behind because these are things that low-income Americans have to spend money on: lights, rent, fixing up their old car, food, childcare, and mass transit. Look how much they have gone up. Yet the minimum wage has stayed the same. That is why this is a value issue.
When people who work hard and play by the rules have to rely upon food stamps and food banks to feed their children and the minimum wage has them trapped in poverty, it is unacceptable. It is un-American. It is not what our Nation is about.
So Americans deserve a raise. That is why this bill raises it from $7.25 to $10.10 an hour in three annual steps. It will link the minimum wage to the cost of living in the future. In other words, we index it for the future so we don't have this prospect that as other things increase in price, the minimum wage stays the same. It is time to index it in the future.
Our bill also provides for a raise for tipped workers--the people who serve your food, push the wheelchairs at the airports, and park cars. Every time I tell somebody this, they tell me I can't be right; I must be mistaken. I tell them the tipped wage today is $2.13 an hour, and it has been that way since 1991. Not a 1-cent increase since 1991. People find that hard to believe. It is hard to believe, but it is very true.
So our bill would increase tipped wages from $2.13 an hour up to 70 percent of the minimum wage over a 6-year period of time, the first increase in tipped wages in 23 years.
An increase in the minimum wage benefits everyone. Twenty-eight million workers will get a raise--15 million are women, so over 50 percent of the increase--4 million African-American workers; 7 million Hispanic workers; and 7 million parents will get a raise. And we forget about this. How about our kids? Fourteen million kids will benefit from a minimum wage increase. That means their families will get an increase in the minimum wage. This benefits the kids. So think about the children in America. They are going to get a raise too.
Again, raising the minimum wage helps our families and it helps our economy. This is why we had a press conference this morning with a group called Business for a Fair Minimum Wage. One thousand businesses across the country representing every State in our Nation have signed on saying: Yes, we need to increase the minimum wage to at least $10.10 an hour. They understand and Main Street businesses understand this.
If we increase the minimum wage for people in the community, they are not running off to Paris, France, to spend the money. They are going to spend that money on Main Street, and that helps our small businesses. This is why so many small businesses get it. They understand that if we raise the minimum wage, that helps them. That helps the local economy on Main Street.
The Economic Policy Institute estimates that our minimum wage bill will put $35 billion in the hands of millions of workers, and that money will be spent on Main Street. It will pump an additional $22 billion into our GDP, supporting 85,000 new jobs as the raise is phased in over 3 years.
There is another issue I think we need to address, and that is what happens with low-wage workers and how they do sustain themselves. They are in poverty from the minimum wage. So what do they rely on? They rely on food stamps, Medicaid or the Children's Health Insurance Program. They rely upon the earned-income tax credit and the Temporary Assistance for Needy Families Program. That costs taxpayers in America $243 billion a year.
Again, I am not saying that by increasing the minimum wage we are going to knock that down to zero. I can't say that, but what I can say is that a study was done just on food stamps, and if we raise the minimum wage, in the first year we will save $4.6 billion in taxpayers' money because people will now have enough money to go out and buy their own food. They will not rely on food stamps.
A lot of these other things will be cut back too, such as TANF and Medicaid or CHIP. I can't say how much, but people understand that this is what we are paying as taxpayers to support a minimum wage below the poverty line.
Again, people understand how important this minimum wage is. That is why it is so broadly supported by such a cross-section of American people.
Here is a poll that has been done. A USA Today and Pew Research Center poll this year indicated that 73 percent of all voters support raising the minimum wage to $10.10 an hour--90 percent Democrats, 71 percent Independents, and even 53 percent of Republicans believe we ought to raise it to at least $10.10 an hour.
So the American people get it. There is overwhelming support for raising the minimum wage. But I am just mystified by how vehemently my Republican colleagues oppose this modest increase. I just don't understand it. But what I hear is the same old outdated, disproved arguments against giving working Americans a raise.
There are some on the other side who believe we should do away with the minimum wage. There should be no minimum wage at all. Try that one on for size. Talk about a race to the bottom. Four dollars an hour maybe? Three dollars an hour? Two dollars an hour? You see, I have always said that without a strong minimum wage and without a good, strong Wage and Hour Division at the Department of Labor to make sure people adhere to it--if we don't have that, then there is always someone a little worse off than you who will bid lower than you for that job.
So someone says: We will pay $7 an hour. There is always somebody that just needs the job a little more, they are desperate, and they say: I will take it for $6 an hour. Then there are some a little worse off than that who say: We will take it for $5 an hour, and we get a downward spiral.
That is why I say our American value is to have a strong minimum wage, whereby people who work hard--and some of these jobs are hard work. People are on their feet 8 hours a day or they are doing some manual labor or they are doing the kind of jobs a lot of people don't do. Yet they live in poverty. It is not right. Raising the minimum wage is common sense that adheres to our American values and gives everyone a fair shot at the American dream.
I hope my colleagues will do the right thing and vote for cloture, allow us to get on the bill. We can have some amendments offered, and we can vote to give working Americans a raise after all these years.
I yield the floor.
Madam President, tomorrow about noon we will be voting on something in the Senate that I daresay a lot of Americans will be paying close attention to. The reason they are going to be paying close attention is because that vote will affect them and their families in the future in a very big way. That vote will be on whether we will actually bring debate to a close and vote on increasing the minimum wage in America.
If we were to bring that to a vote, we could pass it, the President would sign something like that into law, and in 6 months the minimum wage would go up by 95 cents an hour; then next year it would go up by another 95 cents; and the year after another 95 cents from where it is now at $7.25 an hour.
What we are going to vote on tomorrow will have a drastic effect on millions of American families--and it is going to have a big effect on our economy, because it will boost our economy and get the wheels going again, because people will have more money to spend. They will spend it on Main Street. And that is what is lacking right now--consumer demand--consumers with enough money to spend on Main Street. All the economists will basically tell you it is the lack of aggregate demand that is keeping our economy from moving ahead. Tomorrow at noon we will have a vote on that.
Tens of millions of American families are struggling, trying to make ends meet to give their kids a little bit better life. And, quite frankly, a lot of them on low wages are on public assistance which is costing American taxpayers nearly $250 billion every year--in food stamps, earned income tax credits, Temporary Assistance to Needy Families, and Medicaid. Add all those up and it is about $243 billion a year.
Taxpayers are subsidizing a lot of these companies that are paying very low wages. Many of the companies that pay such low wages are large, multibillion dollar companies raking in big profits and showering their CEOs with wealth. The average CEO pay of a Standard & Poors 500 company was 21 percent more last year than in 2009. In other words, from 2009 until the end of last year, CEO pay at these 500 companies went up an average of 21 percent. However, since 2009, the minimum wage has not increased 1 penny. The CEO pay averages now about $11.7 million a year, while a minimum-wage worker today makes $15,000 a year. That is working full time, all year, no time off.
It was pointed out to me that a CEO earns that $15,000 by about 11:30 a.m. on the first day of work of the year. Imagine that. By 11:30 a.m. on January 2--assuming they don't work on January 1--they make $15,000. The minimum-wage earner has to work the rest of the year to make that $15,000. And many of these companies are paying the minimum wage.
It is the families who are getting hurt. This is wrong. This is not what America is about. We want people who get up and go to work every day to be able to rely on that work to support themselves. Working families want that, too. They want a paycheck which supports them, gives them a fair shot at being a member of the middle class, and a fair shot of achieving the American dream.
So now we can do something about it. We know that raising the minimum wage will help tens of millions of workers. When we raise it to $10.10, as our bill does, the bottom fifth of the workforce--nearly 30 million workers--will get a raise.
By the time this fully phases in at $10.10 in 3 years, nearly 7 million people will be lifted out of poverty. If we want an antipoverty program, we have it tomorrow when we vote on raising the minimum wage. Seven million people will be lifted out of poverty, and it won't cost the American taxpayers one single dime, and taxpayers basically
will save money because we won't be putting as much money out for public assistance such as food stamps.
I thought it was kind of interesting that the Ryan budget the House passed cuts more than 3.8 million people off of food stamps. In raising the minimum wage, our bill would save billions of dollars--about $4.6 billion a year--not by cutting people off of food stamps, but by getting their income up so that over 3 million people don't have to rely on food stamps. So under the Ryan budget, people are kicked off of food stamps and they still get minimum wage. Under ours, you get a raise in the minimum wage and you don't have to rely on food stamps, and you save about the same amount of money.
Again, I am mystified by how vehemently my Republican colleagues oppose raising the minimum wage. Certainly they must know the polling data, that the vast majority of Americans support raising the minimum wage to $10.10 an hour. But it seems my friends on the Republican side are sort of locked into some philosophy or ideology that says there shouldn't be a minimum wage. In fact, some of my colleagues on the Republican side actually believe there should be no minimum wage. None. Nothing. Well, we got over that 70 years or more ago, in 1938, when we first passed a minimum-wage law in America.
Again, we hear from the other side that by raising the minimum wage there will be this massive loss of jobs. That is simply not true. It is a myth. But it is brought up every time.
I have been in Congress now 40 years. We have raised the minimum wage several times during that period of time both under Democratic and Republican Presidents. Every time it has come up, we hear that same old song: It is going to cost jobs. Guess what. Every time we raise the minimum wage, there has been no big loss of jobs. So there are no historic facts my Republican colleagues can point to to show that raising the minimum wage costs jobs.
They do refer to the Congressional Budget Office study. Actually, that is wrong. It was not a Congressional Budget Office study. They didn't do a study themselves. What they did is looked at the literature out there going back many years on potential job losses. Some of the old studies showed there would be a job loss; under a new study they said there wouldn't be. What CBO did is they averaged them all and said: Here is the average. They didn't say specifically 500,000 jobs would be lost. They said somewhere between zero and 1 million jobs will be lost, so we will pick the midpoint at 500,000. But, again, there is no historical evidence for this in terms of looking back.
We can go back and look at what happened to our economy every time we raised the minimum wage, and there has not been a massive job loss. There has been shifting of jobs. People have been raised out of poverty. Working families do better. But there has been no massive job loss. So this is another myth.
As I said, the historical evidence is there has not been any job loss generally--not among teenagers, not among restaurant workers. In fact, this year there has been more job growth in the 13 States that raised their State minimum wages at the start of this year than in the States that didn't raise their minimum wage. Let me repeat that. There has been more job growth in States that raised their minimum wage beginning in January of this year than in the States that didn't raise their minimum wage. A lot of businesses are now understanding this. They understand that, as economists will tell you, it is the lack of aggregate demand: not enough customers. People don't have enough money.
My Republican friends want to give more money to the top, more tax cuts for the wealthy. They get more money--millions more--a year. They don't necessarily spend that on Main Street. They may go to Paris, they may buy a new jet, a new big yacht. They do things like that, but it doesn't really put money right on Main Street.
What small businesses and most economists know is that when you raise the minimum wage, those people who get that raise aren't going off to Paris. They aren't buying a private jet. They are spending it on Main Street in their local stores and local businesses, and that gives a great economic boost to our whole economy.
So when we focus on the best research, the latest research that has been done, it unequivocally shows that raising the minimum wage does not cause a job loss. Again, 600 economists, including 7 Nobel prize winners, have endorsed a minimum wage hike of $10.10 an hour. Six hundred economists, including 7 Nobel prize winners, signed a letter supporting $10.10.
We urge you to act now and enact a three-step raise of 95
cents a year for three years--which would mean a minimum wage
of $10.10 by 2016--and then index it to protect against
inflation . . . these proposals will also usefully raise the
tipped minimum wage to 70 percent of the regular minimum.
The evidence now shows that increases in the minimum wage
have had little or no negative effect on the employment of
minimum-wage workers. Even during times of weakness in the
labor market research suggests that a minimum-wage increase
could have a small stimulative effect on the economy, as low-
wage workers spend their additional earnings raising demand
and job growth and providing some help on the job front.
So, again, forget about the job loss. That is not going to take place. What will take place is we will lift 7 million people out of poverty and 14 million children in America will be in families who will get a raise. That will be good for our kids.
We also hear from Republicans that some of the people who are going to benefit from a raise in the minimum wage aren't the poorest of the poor. It is not just people below the poverty line, but a lot of other people will make more money, so therefore it must not be a good policy.
First of all, I want to dispel the myth that raising the minimum wage does not affect poverty. It does. Whether you use the CBO estimate of close to 1 million workers lifted out of poverty or the results of more sophisticated economic research showing that up to 7 million workers will be lifted out of poverty by the time the bill is fully implemented, the evidence unequivocally shows that raising the minimum wage is an effective poverty-reduction tool.
But I will be the first to admit--and gladly, proudly--that this bill doesn't just help people in poverty. It also helps low-income families who are above the poverty line, and that is a good thing. That is a good thing. A lot of low-income working families will get a raise. Here is basically the breakdown: 52 percent of those who will get a raise have family incomes under $40,000; 31 percent, $60,000; and 17 percent, $40 to $60,000. So, again, it is for the people. Families making $40,000 a year will actually get a boost. How could that be? One person may be making $20,000 and the other person may be making $15,000 or $18,000. They get a boost in the minimum wage, and they benefit. Is that wrong? I don't think that is wrong at all. These are still struggling families, struggling to make sure they get enough for their kids, make sure they put a little away for a rainy day, help their kids get a good education.
Evidently, our friends the Republicans are saying: Look, we should only have something that benefits those who are in extreme poverty. Then they turn around in the Ryan budget and cut food stamps. What are they saying? You know what they are really saying: Tough luck. You are on your own. If you are a minimum wage worker, tough luck, and we don't want to raise your minimum wage.
Well, 69 percent of the workers who would get a raise under this bill have incomes that are under $60,000. So, yes, not everybody who is going to get a benefit from this is in poverty, but it will raise nearly 7 million people out of poverty and will also help some of our lower and middle-income families in America. I say that is a good thing, and I am proud that it does.
Consider an example. Jane and Joe--those are not their real names-- are from Buchanan County in Iowa. They have two young boys. She is a waitress and earns a few dollars an hour plus tips. He works at a gas station for $7.25 an hour. They rely on food stamps and Medicaid. They have applied for assistance through the Low Income Home Energy Assistance Program. They work opposite shifts, so they don't have to pay for childcare--and it is difficult to find adequate care for their younger son's medical needs--but this means they hardly ever see each other. A minimum wage increase would allow them to be together more as a family.
David is a pizza cook in Iowa. He is getting married soon and has a child on
the way. He earns $9 an hour at his pizza job. So what did he do? He took on another job framing houses. He is working about 65 hours a week, no overtime. He has two jobs, so he is working 65 hours a week. That is still not enough. If he worked an entire year at 65 hours a week, he would only earn $30,400 a year. He is working 65 hours a week. That is technically above the poverty line, but no one would say he is making plenty of money and he couldn't use a raise. He is starting a family.
When we raise the minimum wage, David will get a raise at both of his jobs. At one job he is making $9 an hour, and at the other job he is making $9 an hour. He gets a raise at both. He told the Quad City Times that a minimum wage raise would mean quite a bit to improve his life and help his growing family. So, yes, he is making 30,400 bucks a year working 65 hours a week--two jobs.
You say: No, he shouldn't get this minimum wage increase.
That is what I hear from my Republican colleagues. But these are the types of families who are struggling. They need a boost, and we want to give them a boost. We want to help them earn more money--not get more in food stamps or government programs but earn more money to provide for their families and build a better life and have a fair shot at the American dream.
My Republican friends are not only opposing a raise, they are proposing drastic cuts to programs that low-wage workers must rely on to survive. As I said earlier, the Ryan budget cuts more than 3.8 million people off of food stamps, leaving them without any lifeline to put food on the table. By contrast, raising the minimum wage would reduce the food stamp rolls by almost the same amount--as many as 3.6 million people--because it would allow them to earn enough money to buy food for themselves. Both proposals save the taxpayer money, but under our proposal people get to eat. They get to put food on the table.
I have a hard time giving a lot of credence to people who say the increase of the minimum wage doesn't really help people who are in poverty. It is untrue. The professed concern about the poorest of the poor stands in stark contrast with a Republican agenda that would increase poverty and sacrifice a program that helps low-wage working families survive.
Now I want to dispel another myth--that it would hurt small business. We hear about this all the time, but every small business I have talked to says their biggest problem is not payroll costs; it is lack of demand, lack of customers. They don't have customers with money to spend. So raising the minimum wage would help their bottom line.
A lot of small businesses I talk to also tell me they are frustrated, infuriated by the fact that their competitors--the Walmarts and McDonalds and other big businesses--pay rock-bottom wages that force their workers into public assistance. Well, this places responsible small businesses at a competitive disadvantage. It forces them to subsidize their competitors' low wages through their tax dollars. That is not fair. It is bad for workers, small business, and our economy. Small business owners understand this, and that is why the majority of them support this bill. Again, opinion polls--small businesses support the minimum wage 57 percent to 43 percent because they understand that a raise in the minimum wage means their customers are going to have more money to spend on Main Street.
That is why today I received a letter from Business for a Fair Minimum Wage, and 1,000 businesses, large and small, across the country support raising the minimum wage to $10.10 an hour--1,000 all across America. I ask unanimous consent to have this letter printed in the Record following my remarks.
So this letter and the polls show that most small businesses get it. They know that increases in the minimum wage will increase consumer demand. They also know they will have loyal, productive workers who will stay longer and save businesses from having to constantly hire and train new people. Experienced workers who have been on the job longer are more efficient and deliver great customer service that keeps customers coming back.
Finally, some of my Republican colleagues have suggested that we shouldn't raise the minimum wage because they are better served by the earned-income tax credit. I support the earned-income tax credit, and, unlike many of my colleagues on the other side, I actually want to see it expanded so it better serves young and childless workers. Right now, if you are under the age of 25 and you are making the minimum wage of $7.25 an hour, you are making too much money to qualify for the earned- income tax credit. If you are over age 25 and you make the minimum wage, $7.25 an hour, and you have one child, you get $3,250 in earned- income tax credit, plus your childcare tax credit. That gets you up to 19,300 bucks a year. What a deal. But if you are childless, you get no earned-income tax credit.
The veterans who were mentioned earlier--let's say a vet went into the military when he or she was age 18. They got out after 3 years, 21 or 22, and they went out and got a job, a minimum wage job. They do not get the earned-income tax credit.
I am for expanding it. Let's expand the earned-income tax credit to cover childless workers under the age of 25. My Republican colleagues won't support that. They won't support that.
The earned-income tax credit does provide some good support, but think about this: It only does it once a year. The only time you get the earned-income tax credit is after you file your taxes--then you get a refund. That is once a year. Families don't live like that, especially low-income families. They have a budget month after month for heating, for electricity, for fuel, for car repairs, for clothes for the kids. They cannot count on what is going to happen next year. Their income tax credit is good, but it only happens once a year. That is not very good for budgeting purposes for any family. After all, the gas company will turn your gas off in the winter even if you are going to get an earned-income tax credit next April or May. They don't take that into account. They take into account the fact that you cannot pay your bill then. So the best way to help low-income families--minimum wage-earning families plus low-income families--the best way to help them throughout the year is to increase the minimum wage.
Again, all the arguments we hear from the other side of the aisle don't hold water. Today, while what I heard from the other side of the aisle is more talk about the Keystone Pipeline--as if that is going to solve all our problems--all we have to do is build the Keystone Pipeline, and that solves all of our problems. It does? The restaurant worker in Maine, the hospital orderly in South Carolina, the parking lot attendant in Mississippi--they are all going to benefit from the Keystone Pipeline? I don't think so. Somehow that is going to take the place of raising the minimum wage.
So they are trying a little diversion on this Keystone Pipeline. We will provide some jobs, yes, for a couple of years, and when that is over, then what are you left with? And those kinds of jobs are not the kinds of jobs low-income workers would get, which would be pretty high- skilled, high-paying jobs for the Keystone Pipeline. So it doesn't really hold water that the Keystone Pipeline is going to be the end-all and be-all for the economy. It just won't.
Raising the minimum wage is the most commonsense, practical thing we can do right now to help low-income families, give a boost to our economy, and save the taxpayers money. So I hope all my colleagues will do the right thing.
So I hope all of my colleagues will do the right thing tomorrow, allow us to proceed to debate, and vote on increasing the minimum wage. Millions of American families will be watching this vote tomorrow. If they are working hard during the day, they won't be tuning in to C- SPAN, but they will read about it, and they will know what this Senate did about their paychecks and what we did about their desire to have a better life for their families, for their kids, and for their future.
I will also say this. If my Republican colleagues will join with us-- at least five or six of them because we need 60 votes to get over the filibuster--if we get five or six, then we can move to the bill. I hope we will get 5 or 6 or 8 or 10 Republicans who will join us. If not, we
will be back. This issue is not going away. I can guarantee we will be back. We will be back again and again and again.
The American people need a raise. CEOs are getting their raises: a 21-percent increase since 2009--a 21-percent increase, an average CEO is paid; zero increase for minimum wage workers. It is now time to play a little catchup ball and provide fairness for low-income workers in America. So that is the vote tomorrow--a values vote, American values, family values, sound economic values. That is what the vote is about tomorrow. I hope and I trust that some of my colleagues on the Republican side will join with us so we can move ahead to give working Americans a raise and a fair shot at the American dream.
Madam President, I yield the floor.