Alan Lowenthal on Jobs
Opponent's Argument for voting No:
The 1938 Fair Labor Standards Act created a bright line to protect people's right to a 40-hour work week, and make sure that that next hour after 40 hours is paid for with the time-and-a-half of wages. That created the weekend in America. That created the time off that middle class families have taken for granted for decades.
What this bill does is it blurs that line; it creates total chaos in terms of trying to come up with a system to set up ground rules with a case-by-case written contract, and then leaves it to the enforcement of State Labor Departments Wage and Hours Divisions, which are totally incapable of going into the tens of thousands of workplaces all across America.
Congressional summary: Increases the federal minimum wage for employees to:
Proponent's argument in favor (RaiseTheMinimumWage.com): The federal minimum wage of $7.25 per hour remains decades out of date, and the federal minimum wage for tipped workers--$2.13 per hour--has not increased in over 20 years. The minimum wage of the past provided significantly more buying power than it does today. The minimum wage of $1.60 an hour in 1968 would be $10.56 today when adjusted for inflation.
Opponent's argument against: (Neil King in Wall Street Journal, Feb. 24, 2014): The CBO concluded that a jump in the minimum wage to $10.10 an hour could eliminate 500,000 jobs. For Republicans, the report provided ammunition that a higher minimum wage would kill jobs. Democrats pointed to the CBO's findings that the higher wage would lift 900,000 people out of poverty. But both sides missed a key finding: That a smaller hike from the current $7.25 to $9.00 an hour would cause almost no pain, and still lift 300,000 people out of poverty while raising the incomes of 7.6 million people.Congressional Budget Office report:: Once fully implemented, the $10.10 option would reduce total employment by about 500,000 workers, or 0.3%. Some people earning slightly more than $10.10 would also have higher earnings, due to the heightened demand for goods and services. The increased earnings for low-wage workers would total $31 billion. Accounting for all increases and decreases, overall real income would rise by $2 billion.
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Newly-elected Democrats taking office Jan.2017:
Newly-elected Republicans taking office Jan.2017: