Personal Responsibility And Individual Development For Everyone Act
Mr. President, parliamentary inquiry: We are under a cloture motion that has been filed on this amendment? Since I have been recognized and I have the floor, is there a time limit on how long this Senator can speak? I thank the Presiding…
Mr. President, parliamentary inquiry: We are under a cloture motion that has been filed on this amendment?
Since I have been recognized and I have the floor, is there a time limit on how long this Senator can speak?
I thank the Presiding Officer.
Mr. President, first I ask unanimous consent I be added as a cosponsor on this amendment to raise the minimum wage. I strongly support the amendment offered by the distinguished Senator from California, Mrs. Boxer, and Senator Kennedy.
Let's be clear at the outset. The current level of $5.15 an hour as a minimum wage is a poverty wage--actually less than a poverty wage, which I will show in a minute. It is a wage that does not respect the dignity of work, including the most humble work in this country. That is wrong. I say the President of the United States ought to be ashamed of himself, this Senate ought to be ashamed of itself, the House of Representatives ought to be ashamed of itself, that we would let the minimum wage get as low as it has gotten, forcing more and more families into poverty and on food stamps.
I just heard my colleague from Iowa saying, rather than raising the minimum wage, we ought to be putting more into food stamps. What kind of a solution is that? I thought we were going to give people the dignity of work. We ought to get them off welfare and get them into jobs. Now I hear some people say the best thing is giving them more food stamps. I am all for food stamps. It has been a real blessing to our society. But that is sort of a welfare answer. It sounds as if we turned the clock back and we go back on welfare again.
The economic policies of this administration are simply not working as advertised. It is still sputtering. The recovery remains fragile. The President has assured us again and again that tax cuts overwhelmingly for the wealthy will stimulate the economy and create more jobs and get this country moving. Over the last 3 years we have had nearly $2 trillion in tax cuts, but we have lost more than 2 million jobs. The President's economic policies, including tax cuts, outsourcing of jobs, not increasing the minimum wage, refusing to extend unemployment benefits, are not working. Trickle-down economics simply, again, is not working.
You don't have to be from Iowa or Nebraska to know you don't fertilize a tree from the top down. You fertilize the roots, and that is how we need to stimulate the American economy, by applying stimulus to the roots, not to the treetops.
There are obvious ways to do this. No. 1, instead of the tax cuts for the wealthy, you focus tax cuts on working people who need the money and who will actually spend the extra money here in America.
No. 2, you increase the minimum wage. You put more money in the pockets of people who will spend the money because they have to, out of necessity.
No. 3, you extend benefits for the long-term unemployed. Today, March 31, a record 1.1 million Americans will lose their unemployment benefits--this quarter. This is unfair. It is indecent. It is foolish, because it will create more drag on the economy. Again, we ought to be ashamed of ourselves for not extending the unemployment benefits to all these people who have now lost them.
I strongly support the Boxer amendment as one step we need to take in addressing the fact we have too many people out of work, and that people on the bottom of the economic ladder are falling further and further behind.
No one in America who works for a living should live in poverty. Yet for the millions of hard-working Americans with minimum wage jobs, that is exactly what is happening. In fact, if you look at what has happened over the last few years, you can see if this is the poverty line right here for a family of three, going back here to 1971, 1974, 1977, the minimum wage was pretty darned close to the poverty line. Then during the Reagan years it started coming down. During the Clinton years it went up a little bit. Now we are back down again. Look at this gap compared to where we were before, or even before 1970 when the minimum wage was actually above the poverty line. When you look at that, it is no wonder our society has problems. No wonder we are being torn apart in this country. We have more people working, yet falling further below the poverty line because we don't increase the minimum wage.
The other side filed a cloture motion, I understand. I asked the Presiding Officer. He said a cloture motion has been filed on this amendment. This bill we have before us is TANF, the Temporary Assistance to Needy Families. The other side has filed a cloture motion, saying an increase in the minimum wage is not germane, it is not pertinent to the TANF bill, to Temporary Assistance for Needy Families. They are saying it is not pertinent because if the cloture motion is successful tomorrow, this amendment will fall. So they say it is not pertinent.
Why don't they tell that to Secretary Thompson? Here is what he said regarding TANF reauthorization:
This administration recognizes that the only way to escape
poverty is through work and that is why we have made work and
jobs that will pay at least the minimum wage the centerpiece
of the reauthorization proposal for the Temporary Assistance
for Needy Families Program.
It is the centerpiece. And they say it is not pertinent. Somebody better get hold of Mr. Thompson. You better start getting your story straight. He says it is the centerpiece.
If minimum wage is the centerpiece for TANF reauthorization, then we ought to be about discussing how much of a minimum wage--not whether it is pertinent but how much.
Bear in mind again, I heard some talk about teenagers. I keep hearing about teenagers making minimum wage. They are living at home, they have this and that. Teenagers, teenagers, teenagers, I hear that all the time. But you have to look at the facts. Facts are stubborn. Sometimes facts get in the way of stories. The fact is, 7 million workers would directly benefit from a minimum wage increase; 35 percent are the sole earners in their families--35 percent. Maybe some of them are teenagers. Maybe they are married and out of school, maybe they are 18, 19 years old. Mr. President, 61 percent of those affected are women and one-third of them are raising children; 15 percent are African American and 19 percent are Hispanic Americans.
What is this all about teenagers? This is not about teenagers. This is about Americans who go to work every day. As I said, they do some of the most humble work in America.
I think I heard my colleague from Iowa saying something about if you raise the minimum wage, it is bad for business because people will shop elsewhere because they will raise the price of goods and people still have choices. We are not putting the minimum wage on one company and not another, one employer and not another. This is across the board. So if all of them go up, then there is still competition out there. Maybe through the competitive urges of the free marketplace they will find other places to cut costs, be more productive. But don't take it out of the hides of those who work for a minimum wage.
That is what we are basically saying. That is what Congress is saying. That is what this President is saying, when we don't increase the minimum wage. They are saying to businesses all over America: If you want to cut costs, if you want to increase your profit margins, we will help you by keeping your minimum wage as low as possible.
If we raise the minimum wage, maybe businesses will find some other ways of cutting costs and being more productive.
I also heard that if you increase the minimum wage to $7 an hour, it is a drain on business. It doesn't help the family that much. There would be more help with food stamps, for example. An increase to $7 an hour for full-time, year-round workers would add about $3,800 to their income.
Maybe for Senators and Congressmen who make $150,000 a year--I assume most of us have stocks and different investments--when you look at the net worth of the Members of the House and the Senate, what is it? Is it 500 times more than the average American? Maybe $3,800 doesn't seem like a lot to people here, but to a family on minimum wage, for a low- income family, $3,800 would be more than a year of groceries. It would pay 9 months of rent, a year and a half of heat or electricity, or full tuition at a community college for one of the kids. That is nothing to scoff at.
People say, Well, it will impact business. Again, facts are stubborn things. History clearly shows that raising the minimum wage has never had an impact on jobs, employment, or inflation. In the 4 years after the last minimum wage increase passed, the economy experienced the strongest growth in over three decades. Nearly 11 million new jobs were added at a pace of 218,000 per month. There were 6 million new service industry jobs, including more than 112 million retail jobs of which nearly 600,000 were restaurant jobs.
This was after we raised the minimum wage last time. It sure made a bad impact on this country, didn't it?
It is long overdue. We should be ashamed of ourselves for letting it fall so low.
Now we are being told we can't have a vote on the TANF bill because it is not germane. That is exactly what Secretary Thompson said.
Work and jobs that will pay at least a minimum wage is the
centerpiece to the reauthorization proposal of TANF.
Those are Secretary Thompson's words.
We also have to keep in mind that a great majority--61 percent, as I have pointed out--who would be affected are single parents, mostly women with children. Unfortunately, the kind of jobs that women who leave welfare find are minimum wage jobs, which makes it difficult, if not impossible, to sustain families and meet the demands of raising children. For these people, survival is a daily goal. They work hard enough. Their hours are long enough to make ends meet, but only barely.
What this means is they don't have time for their families. They cannot participate in activities with their children, especially school-related activities that most of us take for granted.
I would like to do a survey in the Senate of everyone here. I wonder how many Senators know someone or a family living on the minimum wage. I wonder how many Senators would actually have some friends who are families on the minimum wage. I bet you would not find very many who would actually know anyone. They read about them, but I mean actually know them or maybe have them as neighbors or friends and meet with them and talk with them about how they are living on a minimum wage. That would be an interesting survey to take.
For these people, as I said, survival is their daily goal.
Bear in mind the real value of the minimum wage has fallen dramatically over the past 30 years. Here is the real value of the minimum wage shown earlier by Senators Kennedy and Boxer. We have to keep showing them because these facts are stubborn things. People are working the same.
Back in 1968, in real 2003 dollars, the minimum wage was $8.50.
In other words, if we had indexed to inflation the minimum wage in 1968, it would be $8.50 an hour. That is just indexed for inflation. But if you look at where people were back in 1968, look where we are now. The people who were working back in 1968 at minimum wage jobs are the same people, the same kind of people, the same class of people who are working today. They are doing the same kind of jobs. Why was that job worth $8.50 in 1968, but that same job today is only worth $4.98 an hour?
You might say the minimum wage is $5.15. But if we don't increase it by the end of this year, the real value of that will be $4.98 an hour.
Why? It is the same job, the same work. Why was it worth $8.50 an hour then, and it is only worth $4.98 an hour now? It is because we haven't done our job about keeping up the minimum wage. We keep pushing people down.
That is why there is unrest in America. That is why low-wage people are saying there is nothing in the system for them because it is so skewed against them. They work hard and never can get ahead because the minimum wage is stuck.
The minimum wage employee working 40 hours a week, 52 weeks a year, earns $10,700 a year. That is $5,000 a year below the poverty line for a family of three.
Again, here is the poverty line. The red line is for a family of three. Here is where we were in the past. Before 1970, the minimum wage was above the poverty line. Now look at the gap. Look how far down it is.
Poll after poll after poll taken of low-income Americans show that they don't believe the system is fair. You can read the polls. Look at what happened to them. You add on to that they don't have health insurance. You add on to that they do not have any retirement benefits. You add on to that their pay goes for high heating bills this last winter. You add on to that many of these people earning the minimum wage are paying one-third to one-half of their paychecks just for rent.
How many of us pay one-half of our paycheck for rent?
As I said earlier, the minimum wage--I stand corrected. It is not a poverty wage; it is less than a subsistence wage. And we can't ignore it any longer.
Three million more Americans are in poverty today than when President Bush first took office.
I am not saying that to blame it all on the President. I am not going to say that. Of course not. I am just saying it is a fact.
Today, more than 34 million people live in poverty including 12 million children.
I am not blaming it on the President, or anybody else. I am just stating a fact.
Among full-time, year-round workers, poverty has doubled since the late 1970s--from about 1.3 million to 2.6 million in 2002. Poverty has doubled since the late 1970s.
There is a lot of blame to go around. Rather than blaming anybody, let's fix it. The best way to fix it is to raise the minimum wage. That is at the heart of this problem.
An increase to $7 an hour would affect nearly 7 million workers.
I just saw the figures as to what it would mean in Iowa. I have the figures here as to an increase in the minimum wage in Iowa. If we were to increase this minimum wage, there would be 104,000 workers in my State of Iowa who would be making more money--104,000 workers. Do you know what? They will spend that money. They will spend that money because they have to spend it, because their rent is high, their heating bills are high; if they have any health insurance at all, that is skyrocketing. They are paying for food, paying for the kids. That money gets spun around in the economy. It would be a shock of stimulus for the economy.
I am proud to cosponsor the amendment. To say it again, at the heart of this problem is the fact we are just not paying people for the work they do. Why is it people who do the dirtiest kind of work, the humblest kind of work--the kind of people you walk by, and you never notice them; you go into a restaurant, you go in to eat, and then walk out, and you do not notice them; a lot of times you go into stores, they are there, but you kind of walk by them--well, it is time we noticed them. They deserve to be noticed. They are Americans, and they are working hard. They are trying to raise their families and do the right thing, and what do we say to them? Forget it.
I almost hear echoes from some of the comments I have heard on this floor. I have heard echoes there should not even be a minimum wage. Now, I did not hear anybody say that. I said I sort of heard echoes of that: Well, if we set the minimum wage at $7, why can't we set it at $70 an hour or $700 an hour or $7,000 an hour or something like that? Well, that is sort of scoffing at these poor people who are working because it is almost like saying maybe we should not have a minimum wage at all.
There are a lot of countries that do not have the minimum wage. I suppose we could be like them. I always tell people: When it comes to things like having a minimum wage, just keep in mind, there is always someone poorer than you, more desperate than you, lower down on the ladder than you, who will work for less than you are going to work for because they need it. There is always someone poorer, more needy, more desperate.
Is that what our society says: The law of the jungle? Turn the clock backward and just have a welfare system? As Senator Kennedy said, rather than taxing the American people to provide food stamps and welfare benefits and things like that, it is better to raise the minimum wage and give them a decent living wage rather than putting them on welfare. That is bad for the people on welfare.
I supported welfare to work. I believe in it. But in order to move people from welfare to work, they need some health care benefits; they need some childcare. Fortunately, we passed the Snowe amendment. We need an increase in the minimum wage, and they need housing. But keeping them at this less-than-subsistence wage will not do it.
I have almost heard some echoes, also, that this is some kind of a partisan issue. I went back to look at this issue. Senator Kennedy pointed this out, and I have a chart to point it out again. I think it is very instructive. Since Franklin Roosevelt, when we got our first minimum wage in 1938, almost every President has raised the minimum wage, including Eisenhower, Gerald Ford, and George H. W. Bush. Interestingly, Reagan and this President Bush are both missing. But it has been bipartisan in the past. We have had Republican Presidents who have raised the minimum wage, as well as Democratic Presidents. So I do not think it is a partisan issue at all. It is an economic issue. And it is how you view the value of work.
Now if you believe people ought to go out there and work for whatever an employer wants to pay you, and if you don't like it, you can go somewhere else and try to get something better. We have tried that before in our country. We see that happening in other Third World countries because there is always some poor sucker worse off than you who will work for less than you will.
I really do not think that is the kind of country we want to become. Work should have honor and dignity, and the minimum wage today is not giving dignity to the work these people do.
I will close. I see the Senator from Idaho wants to speak. I will wrap up in a second.
We are talking about Temporary Assistance to Needy Families. The bill on the floor is food assistance.
Listen to this. A 2003 survey by the U.S. Conference of Mayors--these are not Democrats--looked at the hunger issue, and here is what they found: 39 percent of the adults requesting food assistance were employed. Thirty-nine percent seeking food assistance were employed. This is from the Conference of Mayors.
They found a leading cause of hunger was low-paying jobs. The Conference of Mayors found emergency food assistance increased by an average of 14 percent. Fifty-nine percent of those requesting emergency food assistance were members of families--children and their parents. Fifty-nine percent of those who sought emergency food assistance--which means they were at wits end; they had no money, and they had no other place to go, so they requested emergency food assistance--59 percent were members of families--children and their parents.
What did the mayors recommend? What did the Conference of Mayors recommend? They recommended raising the Federal minimum wage as a way the Federal Government could help alleviate hunger. We are being told we cannot do that; we cannot add it to this bill; we cannot even vote on it.
We saw the same thing on overtime: No, we can't vote on that. Put it someplace else. No, we can't vote on minimum wage either.
What is the Senate coming to? Why don't we do as the House of Representatives did, where we used to serve--have a rule where you can't do anything, just pass it. That is why the Senate is different than the House. That is why we are supposed to have open and free-form debate and be able to vote on these issues. But these parliamentary tactics keeping us from
voting on things such as overtime, extending unemployment benefits, and now the minimum wage are unworthy of the Senate, unworthy of this country, unworthy of our jobs.
I close by saying again, this is an issue that cuts very deeply. I remember I was in my home State in the last year, and I found an interesting thing, that more people were relying upon the food banks in Iowa. I thought to myself: Why is that happening? Our unemployment is not that high. It went up a little bit, but why were more people going to food banks in increasing numbers than the unemployment rate was rising?
I found out these are low-income workers. They are minimum-wage workers. They get food stamps. But because we have cut back on food stamps, their food stamps run out about the 20th of the month, and they have to go to the food banks for the rest of the month. I have to believe if it is happening in Iowa, it is happening all over the country.
It is time to give dignity to the people who do the humblest work in our country. Let's get them back up to what they had in the past. If their job in the past was worth what today would be $8.50 an hour, it is at least worth $7 an hour now.
What if we took corporate CEO salaries from 1968 and said they have to now have the same percentage reduction this year as those on minimum wage? Boy, the hue and cry that would go up on that one.
I have made my point. I hope we defeat the cloture petition. I hope we have a vote on increasing the minimum wage, and I hope it passes overwhelmingly. I hope the President will be on board and support it so we can give dignity to our workers.
I thank the Senator from Idaho for his patience and yield the floor.