Friday, July 07, 2017

That Pesky Minimum Wage Conversation

Photo from The Guardian
https://www.theguardian.com/us-news/2017/jul/07/democracy-vouchers-seattle-politics-low-income-homeless#img-2
It's been a while since I posted anything even remotely political here - likely due to the daily onslaught of information a la the Drumpf shitshow. Generally, when I post something in response to the political goings-on, it is after much thought and reflection, because often these things are murky and I like to have a clear head when I write about my positions. With the fast and furious, continual chocolates-on-a-conveyer-belt (think I Love Lucy) nature of our current administration, it has been nearly impossible for me to clear my head long enough to say anything coherent. I know I'm not alone.

However, one issue that keeps coming up in my world is the $15/hour minimum wage conversation. It was passed in Washington state, is being pushed in other states, was recently passed in British Columbia, has been analyzed by several university studies, and is hotly debated even as a national standard. I've read the news coverage of the studies, observed debates online, listened to folks talk about it on NPR, and am having a really hard time not being cynical about all of this.

For me, what it comes down to is humanity. (Ok, most everything comes down to that for me.) The simple fact is, even though some places have passed minimum wage legislation, there is nobody that I know of who works a minimum wage job and is currently being paid $15/hour. All of these measures are "phased in" over a period of time. And to be clear, $15/hour is NOT A LIVING WAGE in most places. $15/hour for a 40-hour week means that you are making $600 a week before taxes. That means that you're making less than $30,000 a year before taxes. Depending on how many people are in your household (would have to be five or more), that doesn't even qualify you for Medicaid without extenuating circumstances because the federal poverty level for 2017 for a family of four is $28,200.

So, the places that are passing these minimum wage bills are generally the ones where the standard of living is higher (ie. Seattle), which makes sense, given that if you want to live in Seattle and you're making $15/hour, your entire paycheck will go toward your rent. But since you don't hit the federal poverty level, you don't qualify for SNAP benefits, so I hope you like the taste of carpet, because that's all you'll be able to eat. Unless you work in a restaurant and you can nick some food there.

But, oops, remember, that these laws are being phased in. So if you're working a minimum wage job in Seattle right now, you aren't making $15/hour yet.

So. Yeah. Humanity.
One of the most vehement arguments against the $15/hour minimum wage I've seen in my liberal enclave of Seattle comes from small business owners like restaurateurs and hipster shop owners. They "can't afford" to pay folks that much and stay in business.

Go out of business.
I mean it. That might sound harsh, but if you can't afford to pay the people who work for you, the people in your own damn community, the people who are the face of your American dream, enough money so that they can live with a roof over their heads, know where their next meal is coming from (and it's not the trash can), and get to work without a 90-minute bus ride, you don't have a solid business plan and you should probably go back to the drawing board.

Businesses are not more important than people.
Just because you have a great idea for a small business that you think hipsters in Seattle will flock to doesn't mean you deserve to be in business. It should be part of your business plan to analyze whether you can pay your workers enough to live on, and offer them paid leave and health insurance. If you can't, find a place that's cheaper to set up shop so you can or go back to your day job. I have a dream, too. Lots of them. But if I am going to build those dreams on the backs of people whose lives depend on Medicaid funding and SNAP benefits (in this administration? Oy), then I'm living with blinders on. Big, white privilege blinders.

The studies that say that the $15/hour minimum wage will "hurt the economy," are putting businesses before humans. They are putting some nebulous, unpredictable "economy" before humans. Are we really a country that is so concerned with an idealized, unsustainable, continually growing pile of money that we are willing to let the people who work in entry-level and service jobs live on the streets? If we continue to argue that these kinds of policies will hurt businesses while we cut social services, that is exactly what we are saying. And in Seattle, it is what we're living. There are recent studies showing that the majority of people living on the streets are those who were working in low-wage jobs, with families, who simply couldn't afford to pay their rent - either because of some unforeseen medical catastrophe or by some slow attrition of their ability to pay their bills despite working at least one full time job.

I am not an economist (thank God!), and I appreciate that this is a complicated issue in some ways. But in the way that is most important, it is not complicated at all. If we care about our fellow human beings, we will find a way to make sure that they are taken care of. Period. We will lead with our morality and common humanity and figure out a way to make it work. That is how all dreams are made. Follow the dream and work out the details as you go.

3 comments:

Elizabeth said...

I'm with you on every single point and am grateful that you've laid it out so clearly and rationally. Have you seen the map that lists what minimum wage would have to be in various cities and states to fit the "only pay 30% of your income in rent/mortgage adage? In Los Angeles, it's $40.00 an hour. This country is mightily fucked in so many ways, and I am no economist.

Sigh.

Chris Gilliland said...

Very well said Kario! Your point about going out of business is well taken and simple. People need to realize that they need to plan for their potential employees.

Dee said...

Dear Kario, as one of my young friends says, "You go, Girl!" I am in total and profound agreement with you. I wish only that the millionaires in Congress and in the White House and on the Supreme Court would entertain the notion of justice for all. Peace.

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