Minimum Wage Increases Today—10 Million See More Pay
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Today, nearly 10 million workers in 31 states get a raise when the federal minimum wage increases by 70 cents to $7.25 an hour.
AFL-CIO President John Sweeney says the raise will act as a significant economic stimulus “at a moment when it is critically needed—one that will lift all boats so Americans and businesses can stay afloat and ride out this economic storm.”
The raise will put an extra $2,000 a year into the paychecks of a full-time minimum wage worker. According to the Economic Policy Institute (EPI), that increase will generate $5.5 billion in consumer spending over the next year—providing a boost to the economy without any increase in government spending. This is money that will be spent, Sweeney says, on basic necessities such as groceries, electricity, rent and transportation.
This is not money that will be saved for a rainy day or spent on lavish vacations overseas. Now, that’s not a bad return on a 70-cent-an hour investment. Indeed, a 2008 study by the Federal Reserve Bank of Chicago confirmed that minimum wage increases boost consumer spending substantially more than tax cuts do.
New Bill Would Aid Many of the 57 Million U.S. Workers Without Paid Sick Leave
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Unlike workers in 21 of the richest nations in the world, U.S. workers have no guaranteed paid sick leave to care for themselves or a family member who is ill.
Although union members can bargain for paid sick leave and some firms offer paid leave, nearly half of private-sector workers in this country have no paid sick days. Low-income workers fare even worse—76 percent have no paid sick leave. Overall, 57 million private-sector workers have no paid sick days, and 94 million cannot use their paid sick leave to care for an ailing child.
Today in the House, Rep. Rosa DeLauro (D-Conn.) reintroduced the Healthy Families Act, which would require employers with 15 or more employees to allow workers to earn up to seven paid sick leave days a year to take care of themselves or a family member. Sen. Edward Kennedy (D-Mass.) is expected to reintroduce the Senate version of the bill later this week.
