Is "increasing minimum wage" just feel good rhetoric?

Is “increasing minimum wage” just feel good rhetoric?

By: Dr. Samori Swygert

For many workers across America, their hourly wage has remained stagnant, fixed, and inflexible. The only financial increase many have experienced is the cost of living.

This article will address the everyday cost of living and its’ incongruences with the hourly wage of the average American. The question to ask is, “Is an increase in hourly wage, too little too late or a last minute attempt to pacify the American populace?”

Household budgets remained strapped for cash. Family members routinely trim expenditures, and choose between their wants, needs, and mandatories. The inability to effectively prepare for retirement, emergencies, children’s education, afford a wedding, and even deciding to have children are all governed by our earning potential.

President Barack Obama rallied for an increase in the federal minimum wage with vigor, fervor, and tenacity in his State of the Union address a few months ago. President Obama’s aim was to increase the federal minimum wage to $10.00/hour. However, that is federal minimum wage, meaning for government employees. I agree with the President that the minimum wage should be increased.

My 2 questions for America is: “What about the non-federal employees across America?”, and “Is $10.00/hour enough to survive in America, realistically?”

Some states are adopting the approach that President Obama rallied for, and have begun to increase their state minimum wage. We’ve seen strikes, walkouts, and protests from fast food to Walmart employees breakout from state to state.

Let’s analyze this

Virtually every facet of our society has increased the price tag on the goods and service they provide to Americans.

FITNESS- Washington D.C. has moved to implement a Yoga tax. Yes, gyms will now have to pay a Yoga tax for fitness. The D.C. government feels this tax based revenue can help subsidize the expenses on the city’s budget.

MILK- The New York Post published a March 2014 article that details how the cost of a gallon of milk may increase to an extra $1.00 based on the projection of dairy industry experts.

MEAT, POULTRY, FISH- The Daily Mail quoted some statistics published by the Bureau of Labor Statistics in a June 2014 article. They assert that the cost of meat, poultry, and fish have increased 7.7% over the last year. Furthermore, they graphically displayed the increase in cost of meat, poultry, and fish based on the Consumer Price Index. Meat, poultry, and fish are at the highest point they have ever been since 1967 according to the Consumer Price Index.

CHILD CARE- In April 2014, The Pew Research Center published an article that analyzed the increasing trend of stay at home mothers over decades. The data reveals that more mothers are choosing to be stay at home moms due to the elevation in the cost of child care. The research also shows that from 1985 to 2011, the average weekly cost of child care increased by more than 70% when using inflation-adjusted dollars. All my friends and work colleagues with children attest that their weekly childcare is approximately $250 or more. This calculates to at least $12,000 per year in basic childcare. A $10.00/hour job calculates to $19,200 before taxes. Childcare alone will consume over half your income in a $10.00/hour job. This doesn’t factor in food, transportation, housing, utilities, clothing, emergencies, and SAVING!

Moving along……….

RENT- April 2014, The New York Times published an article that detailed how the average cost of rent has drastically increased nationally. The asserted premise recommends that rent and utilities should not exceed 30% of your household income. They provide detailed data from 2000 – 2013. The average percentage of rent and utility expenditures in 2000 hovered around 25%. 2013 the average percentage of rent and utility expenditures has risen to almost 40%.

ENERGY BILLS- I won’t go too far in detail about the increase in energy bills for households for the sake of brevity in the article. I’ll furnish the links for you to review at your leisure. However, from Chicago, to Baltimore, to New Orleans, to California, the utility bills are increasing dramatically. Chicago’s electricity bills are projected to increase by 18%, Baltimore Gas and Electric Company will add an additional $15.00 to customer’s monthly bill in the upcoming months. The New Orleans energy company, Entergy, has reached an agreement with Algiers, New Orleans to increase energy rates by 31% over a 4 year period.

TRANSPORTATION- Transportation costs have risen and are increasing nationally. The supplied links will illustrate how fares have increased for subways, tolls, bridges, tunnels, buses, and ferry.

COLLEGE TUITION- We can’t forget how the cost of tuition has skyrocketed to unimaginable and almost unattainable proportions (please read the NPR article that is attached).

GASOLINE- We can’t forget the cost of gasoline, and the implementation of the gas tax (please see the Washington Post article).

HEALTHCARE- Yes, we have Obamacare in play but not all states are implementing it. Secondly, just because you may now get healthcare, it doesn’t stop the increase on healthcare deductibles and copays that many insurance companies are hiking up. (Please see the USA Today article)

So in conclusion

The increase in minimum wage to $10.00 isn’t enough. This increase doesn’t match the cost of living in today’s society. The sad part is that the outcry from millions of workers across the nation is loud. However, corporations assert that they won’t have enough to run their business, and will be forced to lay off workers if they increase minimum wages. This is a bunch of nonsense because these same corporations give multimillion dollar year-end bonuses to their top cabinet members each consecutive year. This is supported by McDonald’s deciding to give their new CEO a $13.8 million dollar package from his $4.1 million dollar package in 2011.

Let’s not forget about the raiding and dismantling of employees pension funds.

The promise to raise minimum wage by 2 or 3 dollars is a pacifying move, something to placate the American demographic into silence. However, we don’t need a conciliation prize, we need gainful employment, and in the same breath, we as citizens need to focus on entrepreneurship and group economics to uplift ourselves.

The articles I furnished are proof positive that corporate America doesn’t care about the proletariat that propels them into wealth.