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Brace yourself for a new wave of far right trickledown propaganda as President Obama is expected to call for a hike in the minimum wage in tonight’s SOTU speech. If you’re looking for some actual facts to counter the onslaught, John Schmitt has an excellent post at the Center for Economic Policy research blog, entitled “SOTU Minimum Wage FAQ.”

For instance:

Who would benefit from an increase in the minimum wage?

According to estimates from the Economic Policy Institute (EPI), almost 17 million workers who earn between the current federal minimum wage of $7.25 and the proposed new level of $10.10 (to be fully phased in by 2016) would see an increase in their wages. EPI estimates that another 11 million workers who earn just above the new federal minimum wage would likely get a pay increase as well. Read More

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Minimum wage 2(Cross-posted from Off the Charts - the blog of the Center on Budget and Policy Priorities.)

Raising the minimum wage would help the economy, CBPP Senior Fellow Jared Bernstein writes in the latest edition of the CQ Researcher.

Two well-established facts help back up this argument, Bernstein says:

The first fact is that the American economy is made up of 70 percent consumer spending.

Economists widely agree that an extra dollar earned by a wealthy person is less likely to be spent than an extra dollar earned by a low-income person….

The second fact Read More

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The folks at Pew Research released new poll results today confirming that Americans are increasingly sick and tired of the nation’s growing economic inequality and want government to do something about it. Even sizable percentages of Republicans favor strong action.

“There is broad public agreement that economic inequality has grown over the past decade. But as President Obama prepares for Tuesday’s State of the Union, where he is expected to unveil proposals for dealing with inequality and poverty, there are wide partisan differences over how much the government should – and can – do to address these issues.

The new national survey by the Pew Research Center and USA TODAY, conducted Jan. 15-19 among 1,504 adults, finds that 65% believe the gap between the rich and everyone else has increased in the last 10 years. This view is shared by majorities across nearly all groups in the public, including 68% of Democrats and 61% of Republicans.”

And while there is a significant partisan divide, overall majorities were large for some common sense solutions and assessments of the source of the problem: Read More

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Living wageThe fallout from the destructive 2013 session of the North Carolina General Assembly continues to settle out across the state policy landscape.

As you will recall, during the waning days of the session, lawmakers enacted (and Governor McCrory approved) a new restriction on the ability of cities and counties to enter into contracts on their own terms. Last night, in response to the new law, Durham County Commissioners retracted part of the county’s forward-looking living wage ordinance.

The County Commissioners expressed regret about their action, which was in response to HB 74, signed into law by Gov. McCrory on August 23. The so-called “regulatory reform” law, among many other things,  Read More

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Fast food workersRaleigh’s News & Observer published an outstanding think piece by Kevin Rogers of Action NC today udner the headline “The high cost of fast-food’s low wages.” Rogers’ headline was simpler: “McWelfare.” 

As you can see below, either one works.

I recently met Willietta Dukes, a mother of two and fast-food employee in Durham, North Carolina. Willietta makes $7.85 at Burger King, despite 16 years of experience in the fast-food industry. In August, tired of struggling to get by, she walked off her job, just a month after losing her home because she could no longer afford rent payments. Despite working hard for as many hours as she gets from Burger King, Willietta is forced to rely on food stamps just to make ends meet.

Willietta is not alone. Research released this week finds that more than half – 52% – of fast-food workers nationwide are paid so little that the public needs to provide assistance to make sure workers can afford basic, everyday needs. In other words, fast-food employees are twice as likely as other workers to be forced to rely on programs like the Supplemental Nutritional Assistance Program (food stamps) or Medicaid. Read More