Aug 05, 2008
One-third of American families with children are classified as low income because they earn less than twice the federal poverty level. As they add hours and/or family members to the work force, they quickly cease to qualify for various modes of assistance available to them, rendering the additional income far less valuable than that obtained by their initial efforts.

A pair of new reports from the “nonpartisan” Urban Institute entitled, “Making Work Pay Enough,” and “A New Safety Net for Low-Income Families” propose a number of policy tweaks that federal and state governments can make to those assistance programs to remove the disincentives to self-improvement for these families. (The first report is available at the link below; the second is available here.)

Meanwhile, the second of three increases in the minimum wage—arguably the only accomplishment of the 110th Congress, and a shamefully meager and mean-spirited one at that—kicked in last month. The first increase, in 2007, took the wage from $5.15 an hour to $5.85; last month’s to $6.55, and next year’s final increase will send it soaring to $7.25. As has been the case since 1997, one full-time worker in a minimum-wage family will continue to make about half the federal poverty level.¹

I take the biblical adage, “The workman is worthy of his hire” to mean that if you are going to take advantage of someone’s full-time labor, you owe them a living wage. All the policy tweaks in the world won’t bring about the justice this situation calls for. The American worker and the American people need to wake up. CEO’s are making more than 500 times what their average worker is making,² and the middle class has seen a net loss in income during the present administration.³

This government was founded on principles of equity, in opposition to the accumulation of wealth in a few hands. The first step to restoring our nation’s economic health should be to raise the minimum wage to a living wage (which will vary from state to state), and keep it there by indexing it to a real annual cost-of-living increase, and not to the cruel fiction of the Consumer Price Index.⁴
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¹Oregon State University (Accessed July 30, 2008)
²Wages in America: The Rich Get Richer and the Rest Get Less, from The War at Home: The Corporate Offensive in America From Reagan to Bush, by Jack Rasmus (Accessed July 30, 2008)
³2005 Incomes, on Average, Still Below 2000 Peak, David Cay Johnston, citing IRS data, in the New York Times, August 21, 2008 (Accessed July 30, 2008)
⁴“Using the Consumer Price Index to Rob Americans Blind,” by Richard Benson, at SafeHaven.com (Access July 30, 2008)
tags: Economics | Labor

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