[Vision2020] Minimum wage

[Jerry Weitz]

Raising the minimum wage from $5.15 to $6.15 will not help in real 
inflation-adjusted buying power--it is too small of an increase.  So let's 
discuss the fundamentals.  As Virginia's former Democratic governor Mark 
Warner's track record illustrates, skills training in our high schools 
would help increase wages for Idaho's workforce and encourage more 
jobs.  With the push for community colleges in the urban areas of Idaho, I 
believe that our local high schools could become the rural equivalent of 
community college.  This would cost money and would require a willingness 
to change the current high school structure.

The state legislature's current focus on shifting school funding from 
property taxes to the sales tax (the current maintenance and operations 
debate) misses the point.  Instead of focusing on ways to shift funds, I 
would urge consideration for increased funding for the creation/maintenance 
of skills centers in local high schools.  Rather than seeking a balanced 
taxation approach, the Idaho Education Association has promoted a tax shift 
to the sales tax, which sends a confusing message.

When one examines France, with a high minimum wage, a large 
under-skilled/inexperienced segment of its youth, guaranteed employment 
contracts, unbending unionization, top down regulations, etc., one observes 
high unemployment, a high cost of living, and extreme social unrest.

What works: 1) create/maintain superior education for both the 
college-bound and the non-college-bound, 2) invest in infrastructure, 3) be 
friendly to business, 4) be environmentally wise, and 5) do this without 
going deeply into debt, which requires prioritization.  Ireland has 
followed the above policies with exceptional success.  We should follow the 
lead of former governor Warner and Virginia's Republican legislature and 
make these policies non-partisan.  From what I've learned, Larry Grant, our 
district's Democratic candidate for Congress, seems to understand this 
non-partisan, middle of the road approach.

Jerry



At 11:11 AM 8/7/06, Shirley Ringo wrote:
>Visionaries:
>
>
>I cannot resist the urge to weigh in on the minimum wage issue.  I 
>proposed legislation during the most recent legislative session to raise 
>the minimum wage to $6.15.  It received very little support from 
>Republicans.  (Our District 6 Republicans did support it, and 
>Representative Trail will co-sponsor the effort with us again next year.)
>
><?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
>
>We plan to try again next year, at an amount above $6.15.
>
>
>
>Without getting into the usual arguments, it's unacceptable to have a 
>minimum wage that leaves those paid at that level in cruel 
>poverty.  Lawmakers have neglected maintenance on minimum wage levels.  In 
>1968, the minimum wage meant something positive to families.  In 
>inflation-adjusted dollars, it has lost nearly 40% of its value between 
>1968 and now.
>
>
>
>According to polling, the vast majority of Americans believe the minimum 
>wage should be higher.  I believe eighteen states have a minimum wage 
>higher than the $5.15 federal level, which has not been raised since 
>1997.  Some of these states have used the initiative process to get 
>results, where state legislators would not act on it.  In some of these 
>states, there has been significant help from Republican leaders.
>
>
>
>Many claims of negative consequences do not seem to be true.  One of the 
>claims is that jobs will be lost.  In the majority of states that have 
>raised the minimum wage, there has in fact been an increase in jobs.  (We 
>can't claim the wage increase caused more jobs, but the decrease some 
>predicted didn't happen.)  An increase in employee productivity and less 
>absenteeism was reported where the pay level increased.
>
>
>
>On the inflation issue, <?xml:namespace prefix = st1 ns = 
>"urn:schemas-microsoft-com:office:smarttags" />Florida reported after 
>raising their minimum wage a very minor increase in some prices.  Since a 
>relatively small percent of the employed receive minimum wage, one might 
>not expect a dramatic increase in prices.  (We can expect a "ripple 
>effect" though, where employers will raise wages to be more 
>competitive.)  One year ago in Idaho, according to the Department of 
>Commerce and Labor, 32,000 Idahoans received a wage between $5.15 and 
>$6.15 per hour.  While Idaho State Government employee pay is entirely too 
>low, almost none of them receive pay as low as $5.15 per hour.  I don't 
>consider it an undisputed fact that there will be significant inflation, 
>but we can certainly study the issue in the states that have raised the 
>minimum wage.
>
>
>
>Workers who receive minimum wage live from paycheck to paycheck.  (If they 
>can make it stretch.)  They have no discretionary money.  What are they to 
>do when their taxes go up?  Just more water in the gravy, I guess.  At the 
>minimum wage, it takes more than one full day to earn the money to buy 
>fifteen gallons of gasoline.
>
>
>
>While I continue to study the issue, I am convinced that some of the 
>negative consequences of raising the minimum wage are over-stated.  I am 
>also steadfast in my belief that it is unacceptable to value people and 
>families so little that we allow such a low level of compensation for 
>their efforts and to address their needs.
>
>
>
>Shirley
>
>
>
>
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