COMMENTARY: Living wage is a small price to pay for equity
By Steve Welzer (Green candidate for Governor of New Jersey)
The Post-Courier (New Jersey
Americans used to enjoy upward mobility, but in recent decades the prospects for the middle and working classes have been stagnant. During that period of time, almost all of the increases in productivity, income and wealth have benefitted those who are already quite affluent.
The failure to legislate minimum-wage increases to keep pace with inflation has been a significant factor in regard to the growing income disparities in New Jersey and in our nation. For example: Had the minimum wage simply been indexed to inflation since 1968, it would be $10.70 instead of today’s $7.25 per hour. In those 45 years it has lost one third of its value — while average CEO compensation has skyrocketed over 900 percent!
A recent Merrill Lynch/Capgemini World Wealth Report found that the wealthiest regained nearly all they had lost in the recession of 2008, and that “ultra high net worth individuals” with investable assets of at least $30 million saw a 21 percent gain in their wealth last year. Against that backdrop, legislation that guarantees a decent hourly wage for the working poor seems a small price to pay for equity in our market-driven economy.
If employers could afford to pay the equivalent of $10.70 an hour in 1968 (at which time the economy was buoyant), they can do so now! Costco thrives while paying its workers a minimum wage of $11.50 an hour. Its workers are highly productive and the company faces less turnover than most. Canadian and European corporations pay a higher minimum wage than their U.S. counterparts and those companies remain competitive.
Thirty million people in this country are making less than $10.70 an hour. Taxpayers are footing the bill for social services needed to supplement poverty wages. For example: 40 percent of food stamp recipients are working but can’t provide the necessities of life for their families. Society pays while corporations increase their bottom lines at the expense of the working poor.
This helps to explain why poll after poll has shown that a majority of Americans support increasing the minimum wage (and indexing it to inflation).
When our fellow citizens are not wholly valued in the workplace, when they are employed full time and yet still have trouble making ends meet, we must take corrective action.
There will be a referendum on the ballot in November to increase the minimum wage in New Jersey to $8.25. While $8.25 is still woefully inadequate, Gov. Chris Christie opposes this meager increase and the Democrats refuse to fight for anything more ambitious.
The Greens say: Let’s at least catch up to 1968! This issue is vital for our state’s low-income workers, in particular, but the benefits of a significant minimum wage boost would be widespread. It would provide an economic stimulus (for each dollar increase in the minimum wage, the result is $2,800 more annual spending from that worker’s household), and it could be a first step toward addressing the scandalous disparities of wealth and income. As governor, one of my first priorities will be to send a bill to the legislature to raise the minimum wage in New Jersey to $10.70.
Steven Welzer is the Green Party candidate for governor. He currently serves on the Steering Committee of the Green Party of the United States. He lives in East Windsor, Mercer County.
By Steve Welzer (Green candidate for Governor of New Jersey)
The Post-Courier (New Jersey
Americans used to enjoy upward mobility, but in recent decades the prospects for the middle and working classes have been stagnant. During that period of time, almost all of the increases in productivity, income and wealth have benefitted those who are already quite affluent.
The failure to legislate minimum-wage increases to keep pace with inflation has been a significant factor in regard to the growing income disparities in New Jersey and in our nation. For example: Had the minimum wage simply been indexed to inflation since 1968, it would be $10.70 instead of today’s $7.25 per hour. In those 45 years it has lost one third of its value — while average CEO compensation has skyrocketed over 900 percent!
A recent Merrill Lynch/Capgemini World Wealth Report found that the wealthiest regained nearly all they had lost in the recession of 2008, and that “ultra high net worth individuals” with investable assets of at least $30 million saw a 21 percent gain in their wealth last year. Against that backdrop, legislation that guarantees a decent hourly wage for the working poor seems a small price to pay for equity in our market-driven economy.
If employers could afford to pay the equivalent of $10.70 an hour in 1968 (at which time the economy was buoyant), they can do so now! Costco thrives while paying its workers a minimum wage of $11.50 an hour. Its workers are highly productive and the company faces less turnover than most. Canadian and European corporations pay a higher minimum wage than their U.S. counterparts and those companies remain competitive.
Thirty million people in this country are making less than $10.70 an hour. Taxpayers are footing the bill for social services needed to supplement poverty wages. For example: 40 percent of food stamp recipients are working but can’t provide the necessities of life for their families. Society pays while corporations increase their bottom lines at the expense of the working poor.
This helps to explain why poll after poll has shown that a majority of Americans support increasing the minimum wage (and indexing it to inflation).
When our fellow citizens are not wholly valued in the workplace, when they are employed full time and yet still have trouble making ends meet, we must take corrective action.
There will be a referendum on the ballot in November to increase the minimum wage in New Jersey to $8.25. While $8.25 is still woefully inadequate, Gov. Chris Christie opposes this meager increase and the Democrats refuse to fight for anything more ambitious.
The Greens say: Let’s at least catch up to 1968! This issue is vital for our state’s low-income workers, in particular, but the benefits of a significant minimum wage boost would be widespread. It would provide an economic stimulus (for each dollar increase in the minimum wage, the result is $2,800 more annual spending from that worker’s household), and it could be a first step toward addressing the scandalous disparities of wealth and income. As governor, one of my first priorities will be to send a bill to the legislature to raise the minimum wage in New Jersey to $10.70.
Steven Welzer is the Green Party candidate for governor. He currently serves on the Steering Committee of the Green Party of the United States. He lives in East Windsor, Mercer County.
