US Minimum Wage Increase: White House Releases Progress Report Favoring Wage Hike
President Barack Obama stated several times for Congress to raise the minimum wage to $10.10 per hour, and a new report reaffirmed his bid can come to fruition through state levels or executive action.
In a report released by the White House titled "A Year of Action: Progress Report on Raising The Minimum Wage," the Obama administration blamed Republicans in Congress for blocking proposals to raise the minimum wage. The White House noted state or local legislatures and governors have responded positively to minimum wage hikes in addition to Obama's executive action to raise the minimum wage for federal employees.
The White House noted approximately seven million employees would benefit from the wage hike. The Council of Economic Advisers stated those workers would see benefits from minimum wage increases by 2017, most notably in 13 states and Washington, D.C., which have passed their own wage increases.
Obama's executive action to increase the minimum wage for people working on new federal contracts will benefit approximately 200,000 workers by 2019. The White House also praised cities such as Louisville, Kentucky; Philadelphia, Pennsylvania and St. Louis, Missouri for raising the wage for employees and contractors.
The White House argued that, "in real terms," the minimum wage is "now less" in comparison to 1981, adding, "The federal minimum wage is now only about 36 percent of the average wage, down from its peak of over 50 percent."
The White House reported, "According to CEA estimates, about 28 million workers would benefit from an increase of the minimum wage -- with more than 19 million earning less than $10.10 and benefiting directly, and an additional 9 million low-wage workers benefiting from the 'ripple effect' of an increase."
Women could also see benefits as they represent 55 percent of workers receiving the minimum wage. The Obama administration noted the $10.10 per hour minimum wage would help the 72 percent of women working in "predominantly tipped occupations" such as bartenders and restaurant servers.
Two million families would be above the poverty line with the $10.10 minimum wage. A family of four with only one full-time employee earning $7.25 lives below the poverty line, even with the inclusion of tax credits.
States that have passed minimum wage increases since Obama's call in 2013 include Connecticut, Delaware, Hawaii, Massachusetts, Michigan and West Virginia, but not all reach $10.10. Delaware is scheduled to increase its minimum wage to $8.25 by 2015, and West Virginia's wage hike will be $8.75 by 2016. Massachusetts went above the $10.10 proposal as it will give workers $11 per hour by 2017. The White House noted Massachusetts' new minimum wage will benefit 540,000 workers. Washington, D.C., outdid Massachusetts by $0.50 for employees by 2016.
"First of all, raising the minimum wage can increase motivation," the report stated. "Workers are motivated directly by feeling they are receiving a fair wage. Higher wages can increase employee morale, which raises productivity. In addition, higher wages help workers maintain better physical and mental health, allowing them to be more productive at work."
League of United Latin American Citizens (LULAC) Executive Director Brent Wilkes told Latin Post that raising the minimum wage is a "critical civil rights issue" for millions of families and workers earning low wages.
"Latinos are disproportionately represented among the 30 million Americans who will benefit from a higher minimum wage," said Wilkes. "In fact, Latinos represent only 15 percent of the workforce, yet comprise 25 percent of those that would benefit from a higher minimum wage."
National Council of La Raza Economic Policy Project Field Coordinator Alicia Criado also said a minimum wage increase is "critical" for Latinos.
"Although Latinos are one of the fastest growing segments of the workforce, they by-and-large are overrepresented in low-wage industries. In fact, more than 40 percent of Latino workers earn poverty level wages, leaving them unable to cover their basic family needs," Criado told Latin Post.
Criado noted a higher federal minimum wage would be an important step to help Latino families out of poverty and "reverse alarming trends" in income inequality.
"We're pleased to see the Obama administration as well as many states and cities doing what they can to raise the minimum wage, but ultimately we need legislative action from Congress to raise the wage floor in order to ensure that our entire workforce is being paid decent, livable wages," said Criado.
Wilkes noted that LULAC is collaborating with other national civil rights organizations for a higher minimum wage.
"Our members have met with their representatives earlier this year; and are planning to meet with members of Congress again during the August recess and LULAC ACTober Advocacy Day on October 2 to urge the Minimum Wage Fairness Act (S. 2223) so that this critical civil rights issue is addressed," added Wilkes.
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