[Congressional Record Volume 141, Number 21 (Thursday, February 2, 1995)]
[House]
[Page H1147]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      INCREASING THE MINIMUM WAGE

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentlewoman from North Carolina [Mrs. Clayton] is recognized for 5 
minutes.

  Mrs. CLAYTON. Mr. Speaker, I support welfare reform. Reform of our 
welfare system is best accomplished by rewarding work--by making work a 
prize rather than a penalty.
  Work is a prize when a full-time worker can earn enough to pay for 
life's necessities.
  Work is a penalty when a person can achieve a better quality of life 
when getting public entitlements rather than holding a job.
  That is why any discussion of welfare reform, must also include a 
discussion of other reforms. One such reform is minimum wage reform.
  Contrary to a popular misconception, most minimum wage earners are 
adults, not young people.
  And, many of the minimum wage workers are from rural communities. In 
fact, it is twice as likely that a minimum wage worker will be from a 
rural community than from an urban community.
  The most disturbing fact is that far too many minimum wage workers 
have families, spouses and children who depend on them.
  That is disturbing, Mr. Speaker, because a full-time worker, heading 
a family of three--the typical size of an American family today--and 
earning a minimum wage, would fall below the poverty line by close to 
$2,500 dollars. Imagine that.
  In this country, a person can work, every day, full-time, and still 
be below the poverty level. Work, in that situation, is a penalty.
  A review of the history of the minimum wage is revealing. First 
implemented in 1938, with passage of the Fair Labor Standards Act, the 
minimum wage covers ninety percent of all workers.
  Between 1950 and 1981, the minimum wage was raised twelve times. 
During the 1980's, however, while prices were rising by 30 percent, 
Congress did not raise the minimum wage. Increases in 1980 and 1991 
brought the wage to its current level, but did not bring it level with 
the cost of living.
  In 1980, during the period when there were regular increases in the 
minimum wage as costs rose, a worker, with a family of three, earning a 
minimum wage, would have been above the poverty level. Work, in that 
situation, is a prize.
  Enlightened economists and most recent studies now conclude that, 
increases in the minimum wage produce no significant changes in 
employment either up or down--among low wage firms.
  Raising wages does not mean losing jobs. A recent, comprehensive 
study dramatically demonstrates this conclusion.
  The State of New Jersey raised its minimum wage to $5.05. It's 
neighbor, the State of Pennsylvania, kept its minimum wage at the 
required level, $4.25.
  According to the study, the number of low-wage workers in New Jersey 
actually increased, following the increase in the minimum wage, while 
the number of low-wage workers in Pennsylvania remained the same. Those 
are compelling results.
  Since April, 1991, the minimum wage has remained constant, while the 
cost of living has risen, yet another 11 percent.
  When costs go up and wages remain the same, the effect is that 
disposal income declines.
  In other words, the ability of a minimum-wage worker to shelter, 
feed, and clothe his or her family becomes more and more difficult.
  If, while working full time, a person has difficulty paying for 
housing, food, and clothing, the basic necessities, he or she can 
become discouraged.
  The minimum wage affects many workers in America. More than 4 million 
individuals--6.6 percent of the labor force--worked at or below the 
labor force in 1993.
  Another 9.2 million workers earned just above the minimum wage.
  Mr. Speaker, it should interest us to know that most of the minimum-
wage workers are women.
  In fact, three out of every five or 62 percent of the minimum-wage 
workers are women. And, minimum-wage workers are more likely to be 
poor.
  Last Congress, we expanded the earned income tax credit, and that 
helps those families who battle poverty each day.
  But, that tax credit, according to the Center on Budget and Policy 
Priorities, does not go far enough to reach down and bring the minimum-
wage workers out of poverty. We must do more.
  When a person works, he or she feels good about themselves. They 
contribute to their communities, and they are in a position to help 
their families. Work gives a person an identity.
  Our policies, therefore, should encourage people to work. We 
discourage them from working when we force them to work at wages that 
leave them in poverty.
  Soon, Congress will have the opportunity to raise the minimum wage. 
Let's make rewarding work and wage reform an essential part of welfare 
reform. Let's encourage people to work. And, let's insure that they can 
work at a livable wage.
  Let's raise the minimum wage.
  

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