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McDonald’s announced Wednesday that it would raise wages for its corporate employees by an average of 10% in July. The bottom line: because the announcement only impacts employees in corporate-run restaurants, the increase would leave a whopping 90% of the chain’s nearly 900,000 workers out in the cold.

The move was widely panned by workers and labor advocates as a desperate response to the rapidly growing movement for an increased minimum wage, led by groups like RaiseUP for 15. One Charlotte-area McDonald’s employee summarized the situation perfectly:

“Because we joined together and stood up, McDonald’s was forced to raise pay,” said Brooks, who works at a Charlotte, North Carolina McDonald’s making $7.25 an hour. “Still, this is too little to make a real difference, and covers only a fraction of workers. It’s a weak move for a company that made $5.6 billion in profits last year. We’re going to keep fighting until we win $15 and union rights for all fast-food workers and our families.”

Raising wages is good for workers, businesses and the economy. Bigger paychecks help workers make ends meet and spend more at local businesses. In turn, businesses see more customers, better sales and lower employee absenteeism and turnover. It’s a virtuous cycle that promotes an economy benefitting everyone in North Carolina, not just out-of-state corporate executives and shareholders.

Minimum wage workers, faith communities, labor leaders and supporters from across NC will gather in Raleigh on April 15 as part of a National Day of Action in support of an increased minimum wage and the right to organize. Check out RaiseUP for 15’s Facebook page for details on the rally.

News

For the first time in at least a half century, a majority of American public school students live in poverty, according to a new report released by the Southern Education Foundation.

Fifty-one percent of the nation’s public school students were eligible for free and reduced lunch programs in 2013, according to federal data. In North Carolina, that figure stood at 53 percent—and in the south overall, the numbers of poor students were the highest.

Lyndsey Layton at the Washington Post explained the significance of the new development:

The shift to a majority poor student population means that in public schools, more than half of the children start kindergarten already trailing their more privileged peers and rarely, if ever, catch up. They are less likely to have support at home to succeed, are less frequently exposed to enriching activities outside of school and are more likely to drop out and never attend college.

It also means that education policy, funding decisions and classroom instruction must adapt to the swelling ranks of needy children arriving at the schoolhouse door each morning.

Back in 2006, a report by SEF highlighted how low income children became a majority of the public school students in the Southern states. The authors made this observation:

Currently the South alone faces the implications and consequences of having a new majority of low income students in its public schools… the South also faces a new global economy that requires higher skills and knowledge from all who seek a decent living. In this brave, new world, the people and policymakers of Southern states must realize that continuing the current, uneven level of educational progress will be disastrous.

They must understand more fully that today their future and their grandchildren’s future are inextricably bound to the success or failure of low income students in the South. If this new majority of students fail in school, an entire state and an entire region will fail simply because there will be inadequate human capital in Southern states to build and sustain good jobs, an enjoyable quality of life, and a well-informed democracy. It is that simple.

With today’s news, the president of the Southern Education Foundation had this to offer:

“This is a watershed moment when you look at that map,” said Kent McGuire, president of the Southern Education Foundation, the nation’s oldest education philanthropy, referring to a large swath of the country filled with high-poverty schools.

“The fact is, we’ve had growing inequality in the country for many years,”he said. “It didn’t happen overnight, but it’s steadily been happening. Government used to be a source of leadership and innovation around issues of economic prosperity and upward mobility. Now we’re a country disinclined to invest in our young people.”

NC Budget and Tax Center

As North Carolina continues to recover from the Great Recession, growing more good-paying jobs in the state will require a skilled and educated workforce. As BTC analyst Cedric Johnson writes in the latest issue of Prosperity Watch, an increasing number of jobs are expected to require some level of postsecondary training, and meeting this workforce demand means that a growing number of the state’s public school students must exit the state’s education pipeline prepared to compete in a 21st century economy. And nowhere is this more important than among North Carolina’s lowest income public school students, a growing population that typically needs additional instructional supports to finish high school and enter the workforce fully prepared. See the latest Prosperity Watch for details.