“Just a three dollar increase can make a living wage,” she sings to the children. She goes onto use all of Mary Poppins’ tricks and tools–little birds, penguins, and so on–to explain how low wages hurt families, businesses, and consumers alike.
Don’t get us wrong: We love this video, and anything that brings this issue to a broader audience helps in our campaign for fair wages.
But unfortunately, Minimum Wage Mary Poppins is not quite accurate when she says an increase to $10.10, as proposed by Democrats and blocked by Republicans in the Senate earlier this year, would constitute a living wage for most Americans:
$10.10 doesn’t keep up with cost of goods.According to the Economic Policy Institute, increasing the federal minimum wage to $10.10 would lift millions out of poverty, but it would still not reach the level it would be if the minimum wage had kept up with inflation since 1968, and would not come close what the minimum wage would be if it had increased with worker productivity.
For most Americans, $10.10 doesn’t keep up with the cost of living. While the cost of living varies depending on where you live, $10.10 an hour doesn’t constitute a “living wage” in most areas, particularly if you have one or more dependents.
For example, according to the MIT Living Wage Calculator, a single adult can survive in Arkansas on $7.86 an hour, which is still higher than the current minimum wage in Arkansas, $7.25. However, add a kid into the mix, and that shoots up to $16.37.
In a more expensive area like the District of Columbia, a single adult needs a living wage of $13.65, which nearly doubles with the addition of one child.
All this assumes a 40 hour work week. Think those numbers from MIT look bleak? Well, they are actually extremely optimistic, because they assume the adults in question are working 2,080 hours a year, or 40 hours a week for 52 weeks.
First off, no one should have to work 8 hours a day every single day of the year with no days off. Not only is that inhumane, it ignores events like sickness, family emergencies, and any other of the infinite problems that might keep someone from their 8-hour work day
We talk to hundreds of people every night, many of them retail and service workers, and a consistent theme we hear is that schedules are erratic, unpredictable, and insufficient.
Sometimes it’s because managers don’t want workers to exceed the number of hours that would require them to provide health care. Sometimes it’s an issue of favoritism or retaliation, where a manager will assign a better or worse schedule based on how they feel about an employee. And if you take a second part-time job, you have no assurance that the two schedules will line up, or that you’d be able to juggle the demands of two jobs as they constantly change.
Lastly, thank you Kristen Bell. Despite these few omissions, your collaboration with Funny or Die is hilarious, clever, and shines a bright spotlight on an issue that’s too often overlooked.
For the first time in forever, we have a Disney song that helps the economic facts go down.
To join Working America’s fight for fair wages, text RAISE to 30644.
Documentary filmmaker Michael Moore, the director of films like Roger and Me and Bowling for Columbine, and his wife Kathleen Glynn are separating after 22 years. The proceedings have revealed to the public the extent of Michael Moore’s finances, including a large mansion in Michigan.
Let’s be absolutely clear: that question is ridiculous.
First of all, someone with a blue collar upbringing can most certainly attain great wealth over the course of their life and still maintain the composure, sensibility, and ideals they were raised with. That’s common sense. It’s called economic mobility, and it is something that Americans have felt great pride in throughout our history.
But let’s make something else abundantly clear: Michael Moore and other critics of our economic system do not oppose wealth.
Seriously. This has been a libel against all economic progressives, displayed prominently during the 2012 election when Mitt Romney and others accused President Obama of opposing the very idea of wealth and success (thus the obsession with taking “you didn’t build that” out of context). It’s the insult hurled at anyone who criticizes big money in politics: we are told that we are “jealous” of the Koch Brothers’ massive wealth, because why else would we say mean things about them?
And The Today Show bought completely into this frame, calling Moore’s politics “contradictory” with his big house and his full bank account.
But it’s not contradictory, because Michael Moore doesn’t oppose wealth. Senator Elizabeth Warren, another target of these claims, doesn’t oppose wealth. The millions of Working America members who take action to address income inequality don’t oppose wealth, pursuing wealth, or accruing wealth.
What we oppose, and will continue to fight against, is the following:
• The use of massive wealth to rig our democracy in your favor. We respect the right of Charles and David Koch to grow their business, to hire workers and put out a product. But in addition to running a business, they have spent hundreds of millions of dollars on lobbyists, think tanks, and a constellation of political organizations to insure their company’s success at the expense of others.
For instance, there’s nothing “free market” about the Kochs’ efforts to tax consumers of solar energy in an effort to keep them addicted to the petroleum they produce. If Apple lobbied for a law that would add extra taxes for Android users, there would be an enormous outcry. This isn’t different.
• The use of massive wealth to destroy the ladder of economic mobility that helped create that wealth in the first place. Anyone who runs a business has the right to manage their workforce as they see fit, within the bounds of the law. But businessmen like the Koch Brothers, Art Pope, Rex Sinquefield, and Dick DeVos don’t stop there. Through campaign donations, TV advertisements, lobbyists, and other tactics, they have tried (and often succeeded) in changing laws that protect workers’ rights, wages, and retirement. The DeVos family’s near single-handed funding of the “right to work” effort in Michigan is exhibit A.
Knocking rungs off of the ladder of economic mobility doesn’t create wealth, it destroys it.
Warren understood that when information was presented clearly to consumers–without tricks, traps, and hidden fees–they would be better able to select the products that worked for them. That understanding would allow Wall Street companies to compete on a level playing field, with the best plans and products winning. If that’s not capitalism, what is?
So can Michael Moore criticize inequality while enjoying economic success? Absolutely. Moore just happens to be one of those wealthy people who doesn’t feel the need to use his wealth to destroy others’ ability to become wealthy as well.
That’s not being contradictory, that’s being decent.
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The task force assembled by Chicago Mayor Rahm Emanuel to study raising the city’s minimum wage reached a final recommendation Monday: $13 an hour by 2018. Chicago’s minimum wage is currently $8.25.
The group also recommended raising raising the tipped minimum wage to $5.95 over two years, and pegging both wages to inflation. More importantly, they suggested the Chicago City Council not take any action before November, when Illinois voters will consider an advisory referendum raising the wage statewide to $10.
The Minimum Wage Working Group passed the plan 13-3, with representatives from the Chicagoland Chamber of Commerce, Chicago Retail Merchants Association, and the Illinois Restaurant Association dissenting.
The broad Fight for 15 coalition has been pushing Chicago elected officials to establish a $15 an hour living wage and right to organize without retaliation. “[Mayor Emanuel says] America is due for a pay raise” they tweeted, “absolutely. We need $15 now, not $13 in 2018.”
Two studies released in the past few weeks are busting long-held myths about what makes our economy grow.
The first came in June from three professors: Michael J. Cooper of the University of Utah, Huseyin Gulen of Purdue, and P. Raghavendra Rau of the University of Cambridge. They looked at the long-term performance of 1,500 businesses and found that higher CEO pay has a negative effect on a company’s performance.
Using data from 1994 to 2013, the professors saw that companies in the top 10 percent of CEO pay produced “negative abnormal returns” (lower shareholder returns than other firms in their industry) or around -8 percent over three years. The higher the pay got, the more pronounced the effect: the top 5 percent of highest paid CEOs steered their companies to a 15 percent worse performance.
In a word, overconfidence. CEOs who get paid huge amounts tend to think less critically about their decisions. “They ignore dis-confirming information and just think that they’re right,” says Cooper. That tends to result in over-investing—investing too much and investing in bad projects that don’t yield positive returns for investors.”
The second came this week from the Center for Economic and Policy Research, which compared employment growth between states and found that those states that raised their minimum wage levels experienced higher growth than those that didn’t.
Of the 13 states where the minimum wage went up on January 1, 2014 (either because of legislative action, referendum, or cost-of-living adjustments), all but one had positive employment growth, and nine of them had growth higher than the median. “The average change in employment for the 13 states that increased their minimum wage is +0.99% while the remaining states have an average employment change of +0.68%,” wrote CEPR.
“While this kind of simple exercise can’t establish causality, it does provide evidence against theoretical negative employment effects of minimum-wage increases,” writes Ben Wolcott of CEPR.
Taken together, these studies back up what working people already know: higher wages add to a virtuous cycle that benefits both workers and businesses, and that exorbitant CEO pay does nothing for the broader economy other than line the pockets of an increasingly small and powerful group of uber-wealthy individuals.
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