Raising the MINIMUM WAGE for WORKERS!

MINIMUM WAGE MESSAGING

In his State of the Union address on January 28, 2014, President Obama called on Congress to raise the minimum wage to $10.10 an hour. But as part of what he termed a “year of action,” the President also made clear that even as he pressed Congress to act, it was possible to make progress in the meantime – through steps that states, cities, counties and businesses could take to raise wages, as well as through executive action.

Cities and counties have answered the call, and the President has taken action on his own to raise the minimum wage for workers on new Federal contracts. Together, their efforts will result in higher wages for millions of Americans across the country.

They also illustrate how the broad-based support for a higher minimum wage –bolstered by economic evidence on the benefits of higher wages to workers, businesses and the economy – has helped build momentum for wage increases across the country.

In real terms, the minimum wage is now less than it was in 1981, at the beginning of the Reagan Administration. The Federal minimum wage is now only about 36 percent of the average wage, down from its peak of over 50 percent.

Raising the minimum wage would benefit about 28 million workers.

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 benefitting from the “ripple effect” of an increase.

Raising the minimum wage would help the economy today.

Because low-wage workers are most likely to spend the additional money they earn, increasing their wages would help to increase aggregate demand and strengthen the economy today.

A $10.10 minimum wage would lift 2 million out of poverty.

Currently, a family of four with one full-time worker earning the $7.25 minimum wage is 17 percent below the poverty line, including tax credits. A $10.10 minimum wage would raise that family of four to above the poverty line – and in total, would lift an estimated 2 million families out of poverty.