Living Against the Current

Filed in Jobs, Minimum Wage, Unemployment by on February 14, 2013 8 Comments

They looked me directly in the eyes. They were forthright, bold and persuasive.

Until recently, Tracey Mulvehill has been holding down two jobs to make ends meet, one of which was for minimum wage at a casino. “It feels like I’ve been living against the current, trying to stay above water,” she said.

Jessica Nunez currently works two minimum wage jobs at a warehouse packing chocolate and as a housekeeper. She has three children. She told me that every day she is forced to choose between feeding them, giving them school supplies or providing warm clothing.

Cheryl Henderson is a baggage handler at the airport and a high school graduate. She has worked for the minimum wage for two years and lives with her parents and son. She says an increase to her current wage “would be beneficial and will allow me and my son to finally have a place of our own.”

Harris hosts roundable with minimum wage earners

Harris hosts roundable with minimum wage earners

Shedaya Ivy works at McDonald’s at minimum wage and is attending community college. She lives at home with her grandmother and aunt. For her, a higher minimum wage would mean she “can make sure her grandmother and aunt are ok” and ensure they “have food in the house.” “As long as my family is ok,” she says “I’m ok.”

These are just some of the workers with whom I sat down in Philadelphia today to talk about the struggles that workers and families living on today’s federal minimum wage go through to make ends meet. For them, being rewarded an honest day’s wage for an honest day’s work will help them climb into the middle class. These are our hardworking neighbors and loved ones, exhibiting the tireless spirit that built the American Dream. They deserve a decent living that rewards them for their contributions and allows them to raise their families out of poverty.

President Obama is proposing an increase in the federal minimum wage to $9 by 2015 and indexing the minimum wage to inflation thereafter. This increase would restore the real (adjusted for cost-of-living) value of the minimum wage to what it was in 1981, and indexing the minimum wage to inflation would ensure that working families can keep up with expenses in the future. There are about 15 million workers in the United States who would see a direct boost to their earnings if this proposal is enacted. But it’s not only the workers currently earning the minimum wage who would benefit. The proposal makes excellent economic sense, with the most pronounced benefits coming from increased worker productivity and purchasing power.

Take the recent letter to our national leaders from a group of highly esteemed economists from the Economic Policy Institute. It states that raising the federal minimum wage would “serve to stimulate the economy as low-wage workers spend their additional earnings potentially raising demand and job growth.” The report also highlights what it calls “spillover effects” – increases in earnings to higher-wage workers as a result of companies restructuring their pay scales.

Because of the employment report that is delivered to my office each month, I am still highly attuned to our ongoing struggle to get people back to work, but the argument that an increase in wages would reverse our progress on job creation just doesn’t hold up. Several studies have measured the effects of minimum wage increases (in states that have raised their own minimum wages), and have come to the conclusion that “no detectable employment losses” result from the modest wage increases that have been enacted.

Every story I hear reinforces my conviction that the president’s proposal is the right thing to do – both for our economy and for our values of basic fairness. I intend to work with our partners and stakeholders to build support for the proposal and ensure the Labor Department stands ready to support any change to the law that may be forthcoming.

Tomorrow, I’ll be in Cleveland to meet more workers whose voices deserve to be heard, as well as employers and stakeholders who understand that fair wages lead to a more stable workforce, long-term profitability and broad-based prosperity across our economy. I’ll be updating you from that event as this very important conversation moves forward in the weeks and months ahead.

President Obama, Tracey, Jessica, Cheryl, Shedaya and I are convinced we can do more to lift up our communities and help Americans achieve their dreams. Raising the minimum wage is a great place to start.

Seth Harris is the acting secretary of labor.

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Comments (8)

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  1. john meyerson says:

    It was great meeting you today. Thank you for your leadership on this issue and please thank President Obama on behalf of the working poor across Pennsylvania.

  2. Jim Mayfield says:

    As a small business owner struggling to make it, this increase will increase my costs to operate. Many of our positions are tied to the minimum wage requiring double the wage as is the case of a tractor mechanic. I find it troublesome that the DOL is lobbying for this utilizing tax payer dollars to do so.

  3. Denise Tan says:

    I totally agree with this! I’ve heard a lot of people complaining of their wages. The increase of minimum will absolutely be a great help to workers. Thank you for this information. I truly salute everybody who is behind this plan.

  4. Realist says:

    If Tracey Mulvehill, Jessica Nunez, Cheryl Henderson, Shedaya Ivy (apparently only two of whom graduated from high school) all worked for my business, and the minimum wage goes up to $9/hour, I will have to fire at least one and probably two of them, and I will. Those remaining employed by my small business will have to work much harder to pick up their slack, if they can’t do that they too will be fired and replaced by someone who can. In the meantime, I’ll continue to explore taking my business out of this country. My customers have already approved that move and committed to remain my customers at the lower price I will be able to charge. This is the real world Mr. Ivory Tower Obama and Ms. Acting Secretary, and I can and will “vote with my feet” and look back and laugh at my competitors who remain here while I take away their business too. The sole reason my business has not left yet is because my and my wife’s elderly parents are still here.

  5. Char Coburn says:

    The error in the way of thinking here is that minimum wage jobs aren’t supposed to be for life. They are, and continue to be, a stepping stone to a better future. Shedaya Ivy, that you mention, is a perfect example of this – going to school and looking at the future. The fallacy in thinking that no jobs will be lost if the minimum were to go to $9 lies in thinking that the profit margins of a casino, or a McDonald’s, are such that they can absorb a nearly $2 an hour increase at this time. You also forget the taxes that must be paid on that. It isn’t that the jobs would disappear – it is that the businesses would disappear. Then where would the government get their revenue? If government would leave business alone, our country would be in much better shape now. Government deciding where every dollar should be spent is the problem.

  6. Kirk says:

    It’s amazing to see what far reaching effects can result from raising minimum wage. The positive impact on the economy and other higher wage workers should be enough to change the minds of those who oppose it. Even without those benefits, parents shouldn’t be working 2 jobs and still have to choose between food and school supplies.

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    I’d really love to be a part of group where I can get responses from other experienced people that share the same interest. If you have any recommendations, please let me know. Cheers!

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