Minimum Wage Increases Today, Helping Millions of America's Lowest-Paid Workers

Today, the national minimum wage increases by 70 cents, from $5.85 per hour to $6.55 per hour. I am proud to say that this is the second of three increases due to take effect under the Fair Minimum Wage Act, enacted by this Democratic Congress and signed into law on May 25, 2007.

The increase in the minimum wage comes at an important time for the millions of Americans struggling to make ends meet. Real incomes have dropped since 2001, while the costs of gasoline, health insurance, and attending college have skyrocketed. With today's increase, Americans who most urgently need a pay raise will get a badly needed boost.

These pay increases aren't just about helping workers provide for their families. Unlike tax breaks for the wealthy, the minimum wage increase for American workers will be spent locally, which is good for local businesses, large and small, and good for a struggling economy.

Democrats in Congress have been working to ensure that all Americans are able to share in the benefits provided by their hard work. We will keep working toward those goals in order to help grow and strengthen America's middle class. So far, Congress has enacted a stimulus package to try to get our economy back on the right track, approved legislation to make college more affordable, and pushed efforts to lower energy and health care costs.

In the wealthiest country in the history of the world, it is an outrage that anyone who works full-time would still wind up in poverty. Democrats will continue to look at solutions that will help all Americans build a better life for themselves and their families.

Cross-posted at the EdLabor Journal.

Comments

[kathy001]

Frankly, I'm a little insulted by this post. Does the Congressman think we can't add? An increase of $.70 an hour means a gross increase of $28.00 per week for a 40 hour week. After taxes the employee will see less than a $25.00 increase in a paycheck that no one can live on. The price of gas has doubled, the price of groceries is going through the roof, as is the price of electricity and everthing else. $25.00 a week may be better than nothing but it's not much better than a slap in the face.

Yes, it's great that minimum wage is finally increasing, albeit at the rate that wheat is growing in the Texas Panhandle this year. What would be even greater is for the Democrats in Congress to work to bring better paying jobs back to this country. Put American adults back to work at decent paying jobs so that they don't have to resort to working minimum wage jobs and stop patting yourselves on the back for doing something too late and on too small a scale.

[rwe]

You do know that the 6 % richest folk in the country pay over 80% of the taxes and they are the ones who do most of the hiring? That Obama, Stroger and Daley in Chicago and cook county tax the living out of the poorest with the highest SALES taxes? That taxes proposed by Barack will Hurt every man woman child and business regardless of race , creed, geography gender . The tax cuts that were implemented under Pres Bush helped the working class !!!The people who work.

[CruzDelSur]

"The tax cuts that were implemented under Pres Bush helped the working class !!!"

Yeah!! they help the working class to continue being the working class. Give me a break!!!!!

[guajiro]

Good to see someone interested in facts, although they're a little off. For instance; "small businesses generate between 60 to 80% of the net new jobs added each year, employ half of all private sector employees, and pay 44.3% of the total U.S. private payroll." This of course is from the Congessional committee report on small business.
http://www.house.gov/smbiz/democrats/2004yearendreport%20docFINAL.pdf
So you see, big corporations DO NOT do most of the hiring as you stated above. As to your other postion that big corporations, the instruments of the richest folks, pay over 80% of the taxes, that hasn't been so since about, as Thomas Hartmann says, "The George W. Bush administration has recently driven the top income bracket's taxes even lower----from a high averaging around 80 percent between 1935 and 1963, to a 2002 low of 33 percent". (UNEQUAL PROTECTION: The rise of corporate dominance and the theft of human rights, by Thom Hartmann). Your facts are wrong but you're on the right track as evidenced by your willingness to look for facts, even if they're skewed in this case. Keep it up.

[RightWingMarine]

Why is it outrageous for someone to work a full time job but still be below the poverty line? If I run a company and my employee produces $13,000 for me per year, why would I pay him more than that? What possible reason would I have to pay him so more than he makes for me? It is an absolute certainty that I will go bankrupt by employing people at a wage greater than what they produce.

[terriergirl]

if you, as a business owner, only have $13,000/employee per year in revenue generation, you should fire YOURSELF first - you would be a failure as a manager!

[torrrep]

You don't know the first thing about owning a business. You are under the assumption that all businesses make millions per year and that just simply is not the case. A business does not owe ANYONE a living wage. The employee is the one responsible for making sure that he earns a living wage. If the employee can't live on the income they receive then they have several choices. They can quit and find a better paying job, get an education to make themselves more worthy of greater pay, or stay where they are and receive the same pay.

[kathy001]

At least use figures that make sense. What is the sense in continuing a business where your employees are producing less than $1,000 more a year than you are paying them at the old minimum wage? After payroll taxes you would be in the hole.

Still, if your employee can not produce any better profit than that, either you need to change employees or change your business.

[CruzDelSur]

Congressman Miller, it would be nice to have a wage increase proportional to the cost of living. A few crumbs won't do. You folks in Congress should try living with minimum wages: it is Mission Impossible!!!

[torrrep]

Why should they live on minimum wage? Maybe you should try getting an education and increasing your worth.

[CruzDelSur]

Yep. Forget my honor student status in one of the best univerities in the US. (And the best department in my filed)

Maybe they should experience the condition in the US under minimum wage. But then again, what would you know about that, right (Since you asume, I will too :0)