Minimum Wage

Source: Campaign for America's Future

"Democrats are saying to the Speaker, 'Mr. Speaker, until there is an increase in the minimum wage, we will not support any raise in congressional salaries." - Rep. Nancy Pelosi, June 28, 2006 1

The Promise

The new Democratic majority has promised to raise the minimum wage.

The Problem

Adjusted for inflation, the minimum wage is at its lowest level in 50 years. 2

  • Workers earning the minimum wage will only make $10,700 over the next year, $4,367 under the poverty threshold for a family of three. 3
  • Democrats proposed to raise the minimum wage at least 17 times.
  • Real family income has steadily dropped since 2001. 4

Opponents argue that an increase in wages for workers results in a decrease demand for their labor, ending in lost jobs and hurting the economy. Democrats reject this conclusion, and many business owners admit that a raise in the minimum wage is "the right thing to do."

  • Experience shows that raising the minimum wage increases wages without reducing jobs. 5

The People

The American people need a raise. A Newsweek poll found 68% of Americans believed "Increasing the minimum wage" should be one of the top priorities for the new Democratic Congress over the next two years. 6

  • According to the Economic Policy Institute, at least 14.9 million workers will receive a raise and 7.3 million children will benefit as well. 7
  • 29 states and the District of Columbia have a higher minimum wage than nationally mandated. 8
  • 6 out of 6 states with ballot initiatives on minimum wages voted to increase their state's minimum wage in the 2006 midterm elections.

The Down Payment

Democrats pledge to pass legislation "to raise the minimum wage from $5.15 to $7.25" over two years. 9

  • Democrats have agreed to reject any raise in their own salaries before a raise of the minimum wage has been passed.

1. Pelosi, Nancy. "Until There Is an Increase in the Minimum Wage, We Will Not Support Raise in Congressional Salaries." June 28 2006. http://www.democrats.house.gov/news/librarydetail.cfm?library_content_id=802
2. "Minimum Wage." http://www.housedemocrats.gov/bigpicture/jobs_and_economy/issue.cfm?level2id-99
3. "Weighted Average Poverty Thresholds by Size of Unit: 1980 to 2004." Statistical Abstract of the United States. Ed. 125. Table 695. http://www.census.gov/compendia/statab/tables/06s0695.xls.
4. A New Direction for America. " Six In 2006. http://www.housedemocrats.gov
5. Parks, James. "Minimum Wage Increase Does Not Cost Jobs." November 29 2006. http://blog.aflcio.org
6. http://www.pollingreport.com/prioriti.htm
7. Fox, Liana. "Minimum Wage Trends." October 25, 2006. http://www.epi.org/content.cfm/bp178
8. Parks, James. "Minimum Wage Increase Does Not Cost Jobs." November 29 2006. http://blog.aflcio.org
9. "Minimum Wage." http://www.housedemocrats.gov/bigpicture/jobs_and_economy/issue.cfm?level2id-99

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