USCCB - (SDWP) - Minimum Wage

Minimum Wage

February 2001

Background
Increasing the minimum wage is once again a struggle. All the hope, anticipation, and promise of the last Congress were dashed by partisan bickering. Both parties in Congress and the Administration agreed that the minimum wage should be increased. However, they could not agree on the time in which the increase should be implemented, nor the size and scope of the accompanying tax relief package. How ironic, during this most robust economic time, Congress saw fit to give themselves a raise, but refused to raise the income of the lowest paid workers.

The value of the minimum wage lags far behind "a living wage." The real value of the current minimum wage is 30 percent below its peak of 1968 and 24 percent below its level in 1979. Increasing the minimum wage from $5.15 to $6.65 could be one significant way for society to give low-income workers some share of our ongoing economic growth. To merely keep up with today's economy, the minimum wage needs to be raised by $1.50.

If the minimum wage is increased to $6.65 today, 11.9 million workers–nearly 10 percent of the workforce–would benefit. Of these workers:

70% are adults and 60% are women
close to half (48.0%) work full time
another third (32.0%) works between 20 and 34 hours per week
one third (32.0%) of these workers are parents of children under age 18
the average minimum wage worker brings home more than half (54%) of his or her family's weekly earnings
eighteen percent of these workers live in households with annual incomes below $10,000
half of these workers live in households with incomes below $25,000 a year

Opponents of the minimum wage still argue that increasing the minimum wage will lead to a loss of jobs for the lowest paid workers. Data on the workforce undermine such arguments. Since the 1996-97 increase took effect, jobs have been added in virtually every sector of the economy. Further, more than two dozen independent studies have found moderate increases in the minimum wage had an insignificant effect on employment.

USCC Policy
Work has a special place in Catholic social thought: it is more than just a job, it is a reflection of our human dignity, and a way to contribute to the common good. Most important, it is the ordinary way people meet their material needs and community obligations. In Catholic teaching, the principle of a living wage is integral to our understanding of human work. Wages must be adequate for workers to provide for themselves and their families in dignity. While the minimum wage is not a living wage, the Church has supported increasing the minimum wage over the decades. The minimum wage needs to be raised to help restore its purchasing power, not just for the goods and services one can buy but for the self-esteem and self-worth it affords the individual.

The United States Catholic Conference supports legislation that would increase the minimum wage and is urging Congress to raise the minimum wage in a timely and meaningful way!

Action
As you know, both the Senate and the House of Representatives voted for a $1 increase in the minimum wage in the last Congress. They should each be encouraged to complete the task early in the new Congress.

Senator Kennedy (D-MA) introduced S. 277 in the Senate and Mr. Bonior (D-MI) will introduce the same bill in the House soon. The Fair Minimum Way Act of 2001 would increase the minimum wage to $6.65 in increments of $.60 after 30 days of enactment, $.50 in January of 2002, and $.40 in January 2003. The bill also includes provisions to raise the minimum wage in the U.S. territory known as the Northern Mariana Islands.

Members of Congress should be urged to cosponsor and support this legislation. The monetary increase represents the smallest percentage increase ever in the minimum wage.

Resources
Ryan, John A. Economic Justice: Selections from Distributive Justice and A Living Wage. Edited by Harlan R. Beckley. Louisville: Westminister John Knox Press, 1996.
National Conference of Catholic Bishops. Economic Justice for All. Washington, D.C., 1984.
National Conference of Catholic Bishops. "A Catholic Framework for Economic Life," Washington, D.C., 1996

Websites:
/sdwp
http://www.catholiccharitiesusa.org/programs/advocacy/AdvocacyNet/
http://epinet.org
http://www.makingwageswork.org

More Information: Thom Shellabarger at the USCC, 202.541.3189,
tshellabarger@usccb.org
Seth Turner at Catholic Charities USA, 703.549.1390 x162,
sturner@catholiccharitiesusa.org