House slates vote on raising minimum wage (bowing to moderates, seeking to defuse campaign issue)

AP on Yahoo ^ | 7/28/06 | Andrew Taylor - ap

[NormsRevenge]

WASHINGTON - Bowing to moderates and seeking to defuse a campaign issue before leaving for vacation, House GOP leaders Friday planned a vote on a bill to increase the minimum wage to $7.25 per hour within three years.

The vote comes after almost 50 rank-and-file Republican lawmakers pressed House leaders — who strongly oppose the wage hike and have thus far prevented a vote — to schedule the measure for debate. Democrats have been hammering away on the wage hike issue and have public opinion behind them

"We weren't going to be denied," said Rep. Steve LaTourette, R-Ohio, a leader in the effort. "How can you defend $5.15 an hour in today's economy?"

It was a decade ago, during the hotly contested campaign year of 1996, that Congress voted to increase the minimum wage. A person working 40 hours per week at minimum wage makes $10,700, which is below the poverty line for workers with families.

House Speaker Dennis Hastert, R-Ill., said GOP leaders had yet to determine the specifics of the bill, especially what to add to it to ease the sting on small businesses and other constituencies, such as the restaurant lobby. Lawmakers were hoping to bring it up for a vote by late Friday night, but Hastert said he was not completely certain the vote would occur.

Rep. Howard McKeon (news, bio, voting record), R-Calif., chairman of the House Education and the Workforce Committee, said Thursday that GOP leaders may attach a proposal passed last year that would make it easier for small businesses and the self-employed to band together and buy health insurance plans for employees at a lower cost.

That idea was blasted as a "poison pill" by Democrats and labor unions. The small business health insurance bill exempts new "association health plans" from state regulations requiring insurers to cover treatments such as mental health and maternity care. And opponents fear they would offer inferior prescription drug benefits.

Opponents of the idea also worry that the new health plans would skim healthier workers from traditional plans, thereby increasing the costs and pressures on those plans.

"It's outrageous the Republican Congress can't simply help poor people without doing something for their wealthy contributors," said Rep. Tim Ryan (news, bio, voting record), D-Ohio.

And Minority Leader Nancy Pelosi, D-Calif., called it a "political stunt" for GOP leaders to attach the minimum wage increase to legislation that's sure to bog down in the Senate. Democrats filibustered the health plans bill in May.

"It's a political stunt to put (the minimum wage increase) on a bill they know is doomed," Pelosi said.

Democrats have made increasing the wage a pillar of their campaign platform and are pushing to raise the wage to $7.25 per hour over two years. In June, the Republican-controlled Senate refused to raise the minimum wage, rejecting a proposal from Democrats.

It's long been clear that there is wide support for the wage increase in the House, but Republican leaders have a general policy of bringing legislation to the floor only if it has support from a majority of Republicans. Perhaps one-fourth of House Republicans support the wage increase.

Inflation has eroded the minimum wage's buying power to the lowest level in about 50 years. Yet lawmakers have won cost-of-living wage increases totaling about $35,000 for themselves over that time.

Lawmakers fear being pounded with 30-second campaign ads over the August recess that would tie Congress' upcoming $3,300 pay increase with Republicans' refusal to raise the minimum wage.

[Beagle8U]

"While few people actually work for the minimum wage, this will shift result in shifting a lot of hourly pay scales up and will cause a significant jump in inflation."

I wonder if any of the RAT morons bothered to think that $7.25 hr will cause lots of their sheep to lose their Medicare, low income housing, and food stamps?

Thats on top of the inflation this will cause.

[MinnesotaLibertarian]

how dare the little people, the disposable ones, dare think they are justified in using government to force owners to pay them a living wage?

I know you're being sarcastic, but it's true. The government has absolutely no business setting prices or wages - the laws of supply and demand do. All raising the minimum wage succeeds at doing is increasing unemployment and increasing inflation, leaving some workers only marginally better off than before (or about the same) and others much worse off than before (those that lose their jobs as a result).

[Badray]

NO!

Also no spine, no stomach and very little brain power.

[reflecting]

A devotion to libertarian capitalism is as false a view of human nature and dangerous as socialism....both deny the essential nature of man....there are underground sweat shops all over this country, and but for minimum wage laws they would operate above ground....people will use and abuse other people...and I do have a say in the moral conduct of fellow citizens

What would I pay.....as a believer my conduct is bound by certain commands ...

[spinestein]

[Wal-Mart and McDonalds both pay an average of over $10/hr. What kind of jobs pay $5.15/hr?]



In the 1990s, I lived in a small city of 10,000 people in northern Wisconsin and the WalMart there paid $5.15/hr, McFood paid $5.45/hr and the factory I worked at paid $6.00/hr. It depends on the region of the country what the wage is, but the going wage generally reflects the cost of living. My $6.00/hr allowed me and my wife and daughter to live fairly well (if frugally) because we were paying $250/mo rent for a decent 2 story house with 3 bedrooms, 2 baths and full basement and garage in a nice neighborhood and just a few blocks from a beautiful park/beach on Lake Superior. Contrast that with the place I live now in northern Illinois where those same jobs pay $8-12/hr and rent is $800-1200/mo. And there are lots of places in the country that are far more expensive.

This huge discrepancy in income and cost of living for different regions in America is one reason of many that a federally mandated minimum wage is a poor idea.

[Mrs. Ranger]

Wanna bet?
Wal-Mart and McDonalds both pay an average of over $10/hr.

What kind of jobs pay $5.15/hr? Not trying to be argumentaitve, I just don't see or hear of wages this low.

I understand that. :) The "reality" of regional differences comes as quite a shock to many. ;) Come to SW PA, where $9.00/hr is considered "good money". :) While Walmart probably does pay above minimum wage, even here, we ain't talking $10/hr. ;)

[TChris]

and all the robbers barrens of old would also be proud...how dare the little people, the disposable ones, dare think they are justified in using government to force owners to pay them a living wage? The gall....the unmitigated uppityness

ROFL!

OK, let's go with what you're proposing. I run a computer business. Business is sometimes difficult, since there are others competing for the same customers. If I charge my customers too much, they'll just get someone else to do the work who charges less.

By your reasoning, I should lobby the government to force my customers to pay me what I think they should. After all, the lifestyle I would like, and feel I rightfully deserve, requires a higher income. (This "Living Wage" B.S. is a political term that translates into "standard of living acceptable to me") Customers who refuse to pay the higher rates are like "robber barons", since they're too greedy to part with their beloved cash and give more to me.

Isn't that about right?

[spinestein]

[A devotion to libertarian capitalism is as false a view of human nature and dangerous as socialism]



No, it isn't.

[reflecting]

yes.... this is the same mantra drug out from the beginning...and yet here we are thriving....small business thriving....if a federal minimum wage is such a threat, tell me why we thrive...?

It is a canard, and the evidence surrounds you.

[Niteranger68]

A devotion to libertarian capitalism is as false a view of human nature and dangerous as socialism....both deny the essential nature of man....there are underground sweat shops all over this country, and but for minimum wage laws they would operate above ground....people will use and abuse other people...and I do have a say in the moral conduct of fellow citizens

Let me guess. You can't keep a job.

[reflecting]

some miners
would like to speak to you.

[palmer]

there are underground sweat shops all over this country, and but for minimum wage laws they would operate above ground

Good point. They should call this the "more illegal jobs for illegals" bill.

[NormsRevenge]

newer article , same author and topic

Republicans tie minimum wage to tax cut (Will LIBS vote against it?)

http://www.freerepublic.com/focus/news/1673847/posts

[reflecting]

almost right....you should not take on an employee until the wage you are able to pay him supplies his child with the life you would find suitable for your child.

[spinestein]

The small factory (fewer than ten employees) I work in now is the ONLY ONE of all our competitors in our market segment which makes our type of product here in America instead of in Asia. If this $2/hr minimum wage increase were enacted, then we would HAVE to raise our wages across the board by the same amount even though all of our employees currently make significantly more than the minimum wage (plus we have health insurance). Since our competitors costs (wages) will not be going up (because their employees are Chinese) they will drive us out of business within about a year and all of us will be out looking for new jobs. I'm happy with my current job and don't want to be out pounding pavement looking for a new one because some Keynesian economics worshiper with a wealth redistribution bug up his ass got his way.

[Wolfie]

The funny part is most of these folks are all for using the government to stomp all over people for engaging in supply and demand activities (drugs, gambling, prostituion, etc). But apply the same standard to business? No, no, no, that's an abuse!

[MinnesotaLibertarian]

That's because the Republicans have been smart and let the real value of the minimum wage fall to the point where it is probably below equilibrium wage in just about any market setting imaginable. In other words, we effectively have no minumum wage. Secondly, just because we're thriving doesn't mean we're thriving to our maximum potential. For example, the economy is growing now, in thanks partly do the consumption stimulus created by the Bush tax cuts, except that the budget deficit has caused a trade deficit which has actually slowed the growth rate of the GDP. Point is, a bad economic policy won't necessarily bring the economy to a screeching halt, but it may slow growth.

[reflecting]

Let's no be ugly....I have the job I want...been here for 6.5 years.....but I am surrounded by wealthy small business owners who will not pay a living wage (a very good term one of the only things we can thank J.J. for) for it cuts into the yacht budget, the Mac Mansion....

[MinnesotaLibertarian]

most of these folks are all for using the government to stomp all over people for engaging in supply and demand activities (drugs, gambling, prostituion, etc).

Actually, I am for the legalization of drugs, gambling, and prostitution. If we levied sales and business taxes on these industries as we do with others, we could greatly reduce personal income taxes.

[spinestein]

I've spoken with many miners. I have a great amount of respect for them and their work ethic.