In case anyone forgot there’s a congressional election coming up, the Senate held yet another doomed-to-fail vote Wednesday on raising the minimum wage to $10.10 an hour.
The bill fell far short of the 60 votes needed to clear a procedural hurdle, as all but one Republican voted against the motion to bring up the bill. But Democrats said they’ll keep bringing the bill up for a vote — 28 million Americans need a raise, they say. Plus, it fits with the populist message they’re running on in November: Republicans only care about the rich, not working people.
“This is the start of our fight on minimum wage, not the end,” said Sen. Tom Harkin, D-Iowa.
Republicans, meanwhile, tried to turn the message around. Businesses already face too many obstacles in creating jobs under President Barack Obama, they say, and raising the minimum wage would just depress employment further.
“Surely Senate Democrats could come up with a better jobs program than one that the nonpartisan Congressional Budget Office says would destroy 500,000 jobs,” said Sen. Lamar Alexander, R-Tenn.
President Barack Obama, fresh off an Asian trip that failed to produce a breakthrough for his trade agenda, got in on the act Wednesday afternoon.
With minimum wage workers standing behind him in the East Room of the White House, Obama said that because of Republicans, “These folks are going to have to wait for the raise they deserve.”
Obama noted that some states aren’t waiting for Congress to act — they’re raising the minimum wage on their own.
Plus, the president noted that many businesses have decided to pay their workers more “because they know it’s good business.”
Plus, the president noted that many businesses have decided to pay their workers more “because they know it’s good business.”
Businesses with higher-paid employees face less turnover, and their workers are more productive, he said. Plus, their customers “see the difference.”
Small business owners who support raising the federal minimum wage make the same point.
“We raised our minimum wage to $10.10 without raising prices, knowing that employees who make ends meet stay longer and are more productive,” said Chris Sommers, co-owner of Euclid Hospitality Group, which includes Pi Pizzeria in St. Louis and Washington, D.C.
Democrats enlisted small business owners to make the case for raising the minimum wage in order to counter Republican arguments that doing so would hurt small business. Members of Business for a Fair Minimum Wage also contend it would boost the economy by giving workers more money to spend in their local communities.
That’s good if you can afford it, but many business owners can’t, say various other business groups.
“For the many franchise businesses that are labor-intensive and already operate on thin profit margins, this legislation could be the difference between continuing to operate and going out of business – between maintaining employees or shedding more jobs,” the International Franchise Association contended in a letter to senators.
Low-skilled Americans would find it harder to find work, it added.
Plus, if raising wages is good for business, as Obama contends, then it seems like businesses that can raise wages would do so without being forced to by the government.
Nearly 60 percent of small and mid-sized businesses plan to give their employees a raise this year, according to a new survey conducted by Pepperdine University and Dun & Bradstreet Credibility Corp.
That will put pressure on their competitors to do the same, in order to get the best talent.
“Businesses should be able to determine the most competitive starting wage and subsequent raises for their employees within their industry and local economy,” IFA writes.
If Congress followed that principle, there wouldn’t be a minimum wage at all.
But that battle is over — the minimum wage is here to stay, both as a business reality and a political issue.
If you’re a business owner who pays the minimum wage, be prepared to be called greedy, even if being able to pay only $7.25 an hour enables you to hire somebody who otherwise wouldn’t even have a job.
And if you’re a politician, be prepared to discuss the economics of labor. Money doesn’t grow on trees, and neither do jobs.
Source: South Florida Business Journal
This information is intended to be
educational and should not be considered legal advice on any specific matter.
