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    Argument senators using against raising the minimum wage 'is actually silly': expert

    David Cay Johnston, DCReport @ RawStory
    March 06, 2021

    Thanks for your support!

    This article was paid for by reader donations to Raw Story Investigates.

    Potential swing-vote Kyrsten Sinema plans to vote to convict Trump: report
    U.S. Senator Kyrsten Sinema speaking with attendees at the 2019 Legislative Forecast Luncheon hosted by the Arizona Chamber of Commerce & Industry at the Arizona Biltmore in Phoenix, Arizona. (Gage Skidmore/Flickr)

    This article was paid for by Raw Story subscribers. Not a subscriber? Try us and go ad-free for $1. Prefer to give a one-time tip? Click here.

    David Cay Johnston, DCReport @ RawStory

    Imagine Washington announcing today that for the next three decades your pay will increase each January. You'll get a boost to cover inflation plus 10-cents more an hour. That means your real pay next year, before taxes, will be $4 more per week.

    Ask yourself, would you even notice an extra $4 a week in gross pay? Would you feel like playing by the rules and being a good worker was worth it?

    Well, that's what has happened to the typical American worker since 1990, but no one announced it back then. And it's happened as unions have been pretty much destroyed, representing only about one in 15 private-sector workers.

    As a middle-aged widow who lost her job and took minimum-wage work at a major national retailer to feed herself and her son, who live together in a town with low-cost housing, told me:

    "You can't make ends meet on the minimum wage no matter how much you try. It is just not possible."

    Republicans and some Senate Democrats claim that raising the minimum wage will kill jobs and force small businesses to close. That's not what past actual experience shows, at least not on this planet.

    That's the prime reason Congress and President Biden must raise the minimum wage.

    As private-sector unions have faded away, wages have fallen in tandem. The numbers and the pain of people like the widow show that Congress must step in, acting as a proxy union for the lowest-paid workers by raising the floor on wages in America. If lawmakers fail then taxpayers should expect rising costs for welfare to cope with social pathologies. We should all expect popular support for our tattered democracy will wither even more, putting our liberties in danger.

    Inflation Toll

    The story I pulled from the official data shows things are much worse than just the awful fact that the minimum wage has been stuck since 2009 at $7.25 an hour, its value being eroded by inflation even as America grows ever richer.

    Each year, I do detailed analyses of W-2 wage and salary reports that employers send to the Social Security Administration. Its computers add up every filing and then a report shows how many people make how much in broad pay categories whether they had one employer or many.

    What the wage data show is disturbing. America is becoming two nations separate and unequal, one with a minority of workers who are prospering, some making each year enough for a hundred families for a lifetime. Across the income divide more than 130 million workers struggle.

    Republicans and some Senate Democrats claim that raising the minimum wage will kill jobs and force small businesses to close. That's not what past actual experience shows, at least not on this planet.

    Faulty Argument

    That argument is actually silly because it assumes that prices never increase so if wages go up businesses must fail. Nonsense. But should you find a dealer advertising new cars today at 1990 prices please let me know.

    What the facts show that since 1990 our national wage pie, adjusted for inflation, has grown much bigger. Adjusted for inflation it was $8.8 trillion in 2019, up from $5 trillion in 1990.

    But the way the wage pie was cut into slices changed significantly.

    Let's look first at workers who always earn only the minimum wage. Such people exist, though they are not common.

    In 1990 the minimum wage was $3.80. Adjusted for inflation it would have to have risen to $7.48 in 2019 just to stay even. But the minimum wage was only $7.25, the same as today. In absolute terms these workers are worse off, their meager slice of income pie shrinking.

    In 2019 half of America's 169 million workers made less than $35,000; a third made less than $20,000. Only one in three workers earn more than $1,000 per week.

    $620 a Week

    What about the typical worker? That's measured by examining median pay; half make more, half less. In 2019 the median wage was $34,250 or $620 a week.

    That's a real increase since 1990 of $5,712. That sounds good until you realize that in round numbers it works out to that dime an hour raise every January.

    How about the average wage which includes those with ginormous paychecks? Real average pay rose by $12,225 to $51,916. That's two dimes and a penny more per hour each January. How much would you notice an extra $8.40 a week – before taxes?

    Now let's turn to the extremely well paid, people whose pay increases alone meant they gorged on wage pie while most everyone else got crumbs.

    Let's consider all workers making $1 million or more, roughly one in every thousand workers. Their share of the national wage pie rose mightily, from 3 cents in 1990 to a nickel in 2019. That leaves everyone else with a smaller share of the pie to divvy up.

    What about the super-paid workers who made $10 million or more in 1990 and 2019 using 2019 dollars.

    More Super-Rich

    The number of super-paid workers is for sure small. But it grew five-fold from 739 to 4,024.

    Their average gross pay increased from just shy of $2 million to almost $2.5 million. Simply put in 2019 they got six days of pay for five days of 1990 work.

    Also, a record 222 of these workers were paid more than $50 million in 2019, averaging $89 million each.

    Even if we assume that employers pay these top earners what they are worth, a society whose rules and regulations lavish every more pay on those to the top while hardly growing wages for two-thirds or more of the workforce is neither stable nor enduring. The chasm between the super-paid and everyone else is huge and widening and can destroy support for democracy, as we saw with the failed coup on Jan. 6.

    Without unions to bargain for workers pay simply is not going to improve. Indeed, our government has put downward pressure on wages through the welfare "reform" act President Bill Clinton signed, which flooded the market with women who have few job skills and little education, a stealth subsidy for many employers because they could pay less. The child tax credit for working parents has morphed over time into a subsidy for employers who now capture its benefits by not raising pay. Those are just of many anti-worker policies our government put in place during the past 40 years.

    Congress can fix this. It has to step in as a proxy union for powerless workers and raise the minimum wage. If we could afford a minimum wage in the 1960s that's equal to about $12 an hour today then we can afford to raise our pay standards in today's much wealthier America.

    And to those small businesses that say they will fold if they have to pay their workers more there is an answer: Raise prices.

    If you can't afford to pay a living wage and you can't raise prices, your business is already failing so put it out of its misery. You can always start a new business in the future -- and with people making more money your chances of success will be much better because more customers will have more money to spend.

    This article was paid for by Raw Story subscribers. Not a subscriber? Try us and go ad-free for $1. Prefer to give a one-time tip? Click here.

    Enjoy good journalism?

    … then let us make a small request. The COVID crisis has slashed advertising rates, and we need your help. Like you, we here at Raw Story believe in the power of progressive journalism. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and legal efforts to harm workers exploited by abusive bosses. And unlike other news outlets, we’ve decided to make our original content free. But we need your support to do what we do.

    Raw Story is independent. Unhinged from corporate overlords, we fight to ensure no one is forgotten.

    We need your support in this difficult time. Every reader contribution, whatever the amount, makes a tremendous difference. Invest with us. Make a one-time contribution to Raw Story Investigates, or click here to become a subscriber. Thank you. Click to donate by check.

    Value Raw Story?

    … then let us make a small request. The COVID crisis has slashed advertising rates, and we need your help. Like you, we believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and efforts to harm workers exploited by abusive bosses. We need your support to do what we do.

    Raw Story is independent. You won’t find mainstream media bias here. Every reader contribution, whatever the amount, makes a tremendous difference. Invest with us in the future. Make a one-time contribution to Raw Story Investigates, or click here to become a subscriber. Thank you.

    Report typos and corrections to: corrections@rawstory.com.
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    'Mass casualty, Level 1' event at Indianapolis FedEx after assault rifle shooting: report

    Bob Brigham
    April 16, 2021

    There was a mass shooting in Indianapolis that reportedly involved an assault rifle.

    "Multiple people were shot late Thursday night at a FedEx facility on the southwest side near Indianapolis International Airport, police said. The scene has been declared a 'mass casualty, Level 1,' according to dispatches. The declaration allows more emergency responders to go to the scene to provide support," WISH-TV reports.

    The network interviewed Jeremiah Miller, who was starting his second shift at the facility.

    "This made me stand up and actually look out the entrance door, and I saw a man with a submachine gun of some sort, an automatic rifle, and he was firing in the open. I immediately ducked down and got scared and my friend's mother, she came in and told us to get inside the car," he said.

    Here are videos from the scene:


    A witness who says he's an employee at the FedEx facility in Indianapolis said he heard several shots being fired a… https://t.co/v8V9UchWCb
    — WRTV Indianapolis (@WRTV Indianapolis)1618548734.0


    BREAKING: MASS CASUALTY AT FEDEX INDIANAPOLIS: Police now calling this a mass casualty. Unclear how many victims.… https://t.co/mFKuRIy9hJ
    — Darius Johnson (@Darius Johnson)1618547884.0


    Shooting at FedEx in Indianapolis https://t.co/DDDQAJMUHt
    — WCIA.com (@WCIA.com)1618548668.0

    Simon & Schuster pulls out from distributing book written by cop who shot Breonna Taylor

    Bob Brigham
    April 15, 2021

    Publishing giant Simon & Schuster has pulled out of a project after a day of intense social media scorn.

    "One of the Louisville Metro Police officers who fired shots during the attempted search warrant execution that left Breonna Taylor dead in her apartment last year is writing a book about the case. 'The Fight For Truth: The Inside Story Behind the Breonna Taylor Tragedy,' written by Sgt. Jonathan Mattingly, 48, will be edited and published by Tennessee-based Post Hill Press," the Louisville Courier Journal reported Thursday. "Post Hill Press' website says it focuses on the areas of "pop culture, business, self-help, health, current events, Christian, and conservative political books," and its books are distributed by Simon & Schuster."

    Simon & Schuster received harsh criticism following publication. Author Don Winslow was among those who blasted the publisher.

    Dear @simonschuster This is just wrong. Horribly wrong. Don't do this. https://t.co/r8Uha2F9DQ
    — Don Winslow (@Don Winslow)1618540189.0

    However, after Simon & Schuster announced it would not distribute the book, Winslow praised those who had spoken out.


    https://t.co/iYYsiK6D0m
    — Simon & Schuster (@Simon & Schuster)1618541950.0

    'Comically evil' Marjorie Taylor Greene and Lauren Boebert vote against National Marrow Donor Program

    Bob Brigham
    April 15, 2021

    Controversial Reps. Marjorie Taylor Greene (R-GA) and Lauren Boebert (R-CO) were the wrong side of a 415-2 vote in Congress on the TRANSPLANT Act.

    "Marjorie Taylor Greene and Lauren Boebert were the lone two members to vote against a bill that would reauthorize the National Marrow Donor Program, which matches bone marrow donors and cord blood units with patients who have leukemia and other diseases," CNN's Manu Raju reported.

    Roll call vote on the TRANSPLANT Act.Screengrab.

    Here's some of what people were saying about the first-term GOP lawmakers:



    standing up for liberty means fighting bone marrow donors https://t.co/XoHWrvkNvF
    — Robert Evans (The Only Robert Evans) (@Robert Evans (The Only Robert Evans))1618542431.0


    Some people will do anything to reject science. https://t.co/K1wwi6eQhH
    — Hemant Mehta (@Hemant Mehta)1618541972.0


    These two are like an evil Laverne and Shirley. https://t.co/k09ko4VET6
    — Mr. Newberger (@Mr. Newberger)1618542741.0


    Comically evil and for no reason other than they’ll get talked about bc of the vote https://t.co/qO2pGybkYg
    — Carl Anderson fan club (@Carl Anderson fan club)1618542856.0



    Thank you so much Aspen, Colo. and East Jesus, Ga. I have to assume everyone else you could have sent was worse? https://t.co/P9J850jHUy
    — Helen Kennedy (@Helen Kennedy)1618542415.0


    Well, when you believe in Jewish Space Lasers and Chips in Vaccines, what would you expect. We Must Declare this a… https://t.co/osZbCXQM4M
    — Badd Company (@Badd Company)1618542769.0


    This blows my MIND! These 2 are NOT in Gov to help. They are simply there to start fires. I'll also take this mome… https://t.co/PuYnbfkbXK
    — themocollins (@themocollins)1618543188.0


    If you wanted any more proof that these people are nothing but trolls with no purpose other than to frustrate and d… https://t.co/ztCtTA7myI
    — Gary Whitta (@Gary Whitta)1618542338.0


    The asshole caucus https://t.co/nV41tpXin4
    — Marcus J. DiPaola (@Marcus J. DiPaola)1618542734.0


    Who the hell votes against something like that? QAnon morons, that's who. https://t.co/nUtrb9SMvJ
    — Short-N-Snarky™ (@Short-N-Snarky™)1618543082.0


    there are a lot of nominees for the shittiest person in Congress, but wow, these two really rose to the occasion. https://t.co/YlocTclXuS
    — Jay Jaffe (@Jay Jaffe)1618541576.0


    Of course. They’re professional provocateurs. They don’t care about people. They just like the attention doing horr… https://t.co/VZAEQggQ02
    — Kaz Weida (@Kaz Weida)1618542445.0


    Because they think Leukemia is a hoax? https://t.co/DvFpd5asuY
    — Lori Coleman (@Lori Coleman)1618542353.0














    A year from now, we'll find out they've been trafficking bone marrow. https://t.co/ZJDauIcgL2
    — David Jordan Nestor (@David Jordan Nestor)1618542580.0
     
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