The value of the federal minimum wage has been on a steady decline since it peaked in the late 1960s. In fact, it’s worth 20 percent less today than it was in the 1980s, making it difficult for a full-time worker to pay their monthly bills or even buy the basic necessities. With an income of $15,000 a year, this puts many workers – including many with families to support – below the poverty line.
In fact, the U.S. lags behind many countries when it comes to the minimum wage as a percentage of median income. In America, far too many people at the bottom of the income ladder are working harder and harder but still falling behind.
That’s why President Obama has proposed that we raise the national minimum wage from $7.25 to $10.10. The president’s opportunity agenda is about rewarding hard work and responsibility with fair pay. And that’s why he and Secretary Perez are pushing so hard for an increase.
Raising the minimum wage isn’t just the right thing to do for working families — it’s the smart thing to do to grow our economy. Consumer spending accounts for almost 70% of GDP. Business owners know that in an economy driven by consumer demand, more money in people’s pockets means more customers for them. That’s especially true for low-wage working people. When you put more money in their pockets, they don’t stash it in offshore bank accounts, they pump it right back into the economy – spending it on groceries, gas, school supplies and more. In fact, more than 3 in 5 small business owners support a $10.10 minimum wage.
Additional spending from this increase could help the U.S. compete on the global stage; greater consumer spending and a higher GDP mean a stronger economy – and fewer countries outranking us when it comes to comparing the purchasing power of our minimum wage to theirs.
byon SEPTEMBER 7, 2014
For full article visit: http://social.dol.gov/blog/our-minimum-wage-is-low-really-low/
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