[Congressional Record Volume 142, Number 46 (Friday, March 29, 1996)]
[Extensions of Remarks]
[Pages E512-E513]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         INCOME GAP IN AMERICA

                                 ______


                         HON. MARTIN OLAV SABO

                              of minnesota

                    in the house of representatives

                         Friday, March 29, 1996

  Mr. SABO. Mr. Speaker, I have frequently urged my colleagues to 
address the widening income gap in America. Today, this House had an 
opportunity to do just that by increasing the minimum wage. 
Unfortunately, the majority continued its pattern of ignoring the 
plight of working American families by rejecting even a vote on such an 
increase, which would have raised the wages of over 12 million working 
Americans.
  The facts in favor of raising the minimum wage are overwhelming. Over 
4 million American workers earn at or below the minimum wage, which 
provides an annual income of only $8,840. This amount is well below the 
poverty line for a family of four, and it does not even support a 
family of two above the poverty line. In fact, the Center for Budget 
and Policy Priorities estimates that one in five minimum wage workers 
live in poverty. The buying power of the minimum wage has dropped by 27 
percent since its average in the 1970's, and is now at its second 
lowest in four decades.
  My Republican colleagues have paid a great deal of lip service to the 
value of work and to getting people off Government support. One might 
think that they would embrace efforts to help working Americans support 
themselves. A higher minimum wage enables workers, most of whom are 
adults, to support themselves without turning to Government. Today, 
however, the majority flatly rejected a higher minimum wage.
  The Republican majority speaks often of putting more dollars in 
Americans' pockets. One might think that instead of advocating tax cuts 
that benefit our Nation's most affluent, they would support a higher 
minimum wage, which gives working Americans more money every month for 
groceries, health insurance, heating bills, bus fare, and rent. Today, 
however, they not only rejected an increased minimum wage, they blocked 
the House from even voting on the matter.

[[Page E513]]

  The majority would have us believe that an increased minimum wage 
would, without a doubt, increase unemployment. According to many 
studies, however, this is not true. In fact, over 100 leading 
economists, including three Nobel Prize winners, have urged an increase 
in the minimum wage.
  If Congress truly cares about working Americans, it will raise the 
minimum wage. Doing so would raise standards of living for many 
Americans, and would also be a significant step toward closing the 
income gap that threatens to do great damage to American society. As 
part of my continuing efforts to understand and combat this income gap, 
I am hosting a forum on April 12 at the Minnesota State Capitol in St. 
Paul, MN. The forum is entitled ``Renewing the Social Contract,'' and 
will address the questions of why working American families are 
struggling in today's economy. My special guest at this forum will be 
AFL-CIO president John Sweeney. Mr. Sweeney has been a tireless 
advocate on behalf of American workers, pushing for fair wages, good 
benefits, and honest labor-management cooperation.
  The forum will explore what Government and business can do to ease 
economic anxiety, lessen income inequality, and increase job security. 
In addition to Mr. Sweeney, I will be welcoming representatives of 
business and academia, as well as workers who know what it is like to 
struggle for low wages and who have experienced the difficult search 
for livable-wage jobs.
  I am hopeful that this event will shed additional light on the income 
gap, and will produce ideas for cooperation between Government, labor, 
and business that will enable all Americans to share in our growing 
economy.

                          ____________________