Attachment - Raising the Minimum Wage to Raise Retirement Income

An increased minimum wage is an essential part of increasing income. Earlier this year, Senate Republicans countered the proposal for a $15 per hour wage with a $10 wage. This would return the current wage to the purchasing power it had at the last increase. Let us join hands and make this change now and with no phase-in period. From this point forward, the wage must be automatically indexed for inflation.

When this is done, the benefits of current retirees should be adjusted accordingly. An additional Cost of Living Adjustment is necessary as well. Food prices have gone through the roof and current retirees are suffering. We cannot wait for an end of the year price adjustment.

Over and above inflation, the minimum wage should reflect increased labor productivity. To get to parity with where wages and productivity diverged, a $12 per hour wage is necessary. Another way to reward workers (and retirees) for productivity gains is to shorten the workweek to 32 hours (with 26 hours being considered full time for the purpose of benefits). In this case, the wage could be set to $11 per hour. 

Would these changes cost jobs? Hardly. Low wage workers are sent home when workload is low and required to stay (or not call in) when workload is high. Their work is supplemented by work by higher wage workers in high demand situations, regardless of how much more these workers are paid. Unlike salaried workers, low wage workers are never allowed to sit or stand around doing nothing. Lower wages would not change this.

A statutory wage increase means that employers who do the right thing and pay a higher wage are not put at a competitive disadvantage to those without scruples. This is the logic behind increasing the child tax credit. Without such a credit, workers with children would either not be welcome or would, as now, suffer hunger while working.

Higher wages, ideally $18 an hour ($15 was so 2000s), would be accompanied by alternative educational opportunities (with pay) so that workers who are less productive would be paid the same wage to increase both literacy and job skills.