Mr. Speaker, I join my colleagues in rising in the defense of America's working poor. Instead of weakening workplace safety and not doing this today as the majority intends to do, we ought to be strengthening the American family by raising…
Mr. Speaker, I join my colleagues in rising in the defense of America's working poor. Instead of weakening workplace safety and not doing this today as the majority intends to do, we ought to be strengthening the American family by raising the minimum wage.
Mr. Speaker, I include for the Record a report by the nonpartisan Congressional Research Service which shows that minimum wage will be at the lowest value as a percentage of poverty in nearly half a century.
Mr. Speaker, it has been 8 years since Congress has increased the minimum wage. In those 8 years, Members of Congress have raised their own pay seven times by $28,500.
In those same 8 years, minimum wage workers have not gotten a single raise. They continue to earn $10,700. We have given raises to Federal employees. We have given tax cuts to the extremely wealthy. We have given tax breaks to oil and a host of other big industries. But we have ignored the needs and the plight of America's working poor. This study proves it, and it is time to change it. The current minimum wage fails to provide enough income to enable minimum workers to afford adequate housing in any area of this country. It is inexcusable that today in America nearly one-fifth of children go to bed hungry at night while their parents work full time at minimum wage. Whether one is a Democrat or a Republican, ending child poverty should be central to our domestic agenda. Nearly 3\1/2\ million children have parents who would get an immediate raise if Congress increased the minimum wage.
Hard work is an American value. We teach our children the importance of work and encourage them to do well in
school to achieve a job that rewards it. Despite this, 36 million working Americans live in poverty. Poverty and wage volatility have doubled for full-time, full-year workers since the 1970s. Since President Bush took office, the cost of housing has gone up 33 percent, college tuition has gone up 35 percent, and health insurance has gone up 59 percent. But the working poor have not seen one thin dime.
Leave No Child Behind is a cruel joke. America's future depends on strong families, and if Members believe in values of families, as some say they do, then they would vote this rule down. Every day we prolong raising the minimum wage, we ask families and children to do more with less. It is a bankrupt policy. Instead of rolling back workplace protections or fooling around the edges with that, we should be increasing the minimum wage.
I urge my colleagues to vote against this misguided rule and move on something more important, which is reinvesting in America's people.
July 5, 2005.
Hon. Jim McDermott,
House of Representatives,
Washington, DC.
Memorandum: Historical Relationship Between the Minimum Wage and
Poverty, 1959 to 2005
This memorandum is in response to your request about the
historical relationship been the federal minimum wage and
poverty from 1959 to 2005. In particular, you were interested
in the annual income a full-time, full-year worker earning
the minimum wage would earn relative to the poverty level for
a family of three.
Table 1 shows the effective annual minimum wage from 1959
through 2005 for a full-time full-year worker, relative to
the poverty level for a three-person family. The table shows
when statutory changes to the federal minimum wage became
effective. Average effective minimum wage rates for the year
were calculated based on the pro-rated average of effective
wage rates over the course of the year. For example, in 1997,
the minimum wage was $4.75 per hour for the first eight
months of the year (January through August), and $5.15 per
hour for the last four months of the year (September through
December). The average effective minimum wage for the year is
thus: (($4.75 x 8) + ($5.15 x 4))/12, or $4.8833 per hour.
Here, full-time full-year work is assumed to amount to 2,080
hours of work per year (40 hours per week x 52 weeks).
The poverty income level used here is the U.S. Census
Bureau's average weighted poverty thresholds for a family of
three. The earliest year for which official Census Bureau
poverty income thresholds are available is 1959. Census
Bureau poverty thresholds vary by family size and composition
(e.g., the poverty threshold for a family differs by the
number of children in the family). The average weighted
thresholds reflect the average of the individual thresholds
for a given family size by the observed distribution of
families of varying composition in the population, as
measured by the Census Bureau's Current Population Survey
(CPS). Each year the Census Bureau updates the individual
poverty thresholds to reflect changes in prices, and the
average weighted thresholds, to reflect changes in the
composition of the population for families of each size. The
estimate for 2004 is based on the Census Bureau's preliminary
average weighted poverty thresholds, which reflect price
changes for 2004, but reflect the population weighting from
2003, as opposed to 2004. The final average weighted poverty
thresholds for 2004, scheduled for release this fall, may
differ by a few dollars from those shown here. The
projected poverty thresholds for 2005 are based on the
2004 preliminary weighted poverty thresholds adjusted for
average price inflation from January 2005 to May 2005,
compared to the same period in 2004, which amounted to a
3.1 percent increase in the projected 2005 poverty
thresholds, compared to the 2004 preliminary poverty
thresholds. The Census Bureau will issue preliminary
poverty thresholds for 2005 in January 2006, when price
changes for the 2005 calendar year will be available.
Final weighted poverty thresholds for 2005 won't be
available until the fall of 2006.
Figure 1 depicts the basic trends shown in the table. Table
1 and Figure 1 show that the federal minimum wage was highest
relative to poverty in 1968, when it amounted to 118.7
percent of poverty for a full-time full-year worker
supporting three people. Since 1980, the minimum wage has
been below the poverty line for a full-time full-year worker
supporting a family of three. The most recent increase to the
federal minimum wage to $5.15 per hour in September 1997
(from $4.75 per hour) brought full-time full-year minimum
wage earnings for a family of three up to 82.4 percent of
poverty. Since then, the nominal minimum wage of $5.15 per
hour has eroded relative to the poverty level, which is
adjusted each year for changes in prices. In 2005, full-time
full-year earnings for a minimum wage worker amounts to
$10,712, or 68.9 percent of the estimated projected poverty
level for a family of three ($15,536). Based on the
assumptions used, it is projected that the level of the
minimum wage relative to poverty in 2005 will be at the
lowest level seen at any time over the past 47 years.
Tom Gabe,
Specialist in Social Legislation,
Domestic Social Policy Division.
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