[Congressional Record Volume 142, Number 57 (Tuesday, April 30, 1996)]
[House]
[Page H4169]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            THE WORKING POOR

  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, between 1979 and 1992 the number of 
working poor in America increased by 44 percent.
  Some may not care about that--I do.
  I care that millions of our fellow citizens are holding down jobs, 
while sliding into poverty.
  It's not fair. We can begin to correct some of that unfairness by 
increasing the minimum wage.
  I also care about this Nation's small businesses--the backbone of our 
economy.
  I would not promote a policy to help the working poor if it was shown 
that such a policy would substantially hurt small businesses.
  Sometimes we are given false choices--employees with livable wages 
can be helpful to small businesses' profits.
  According to the best evidence I have seen, a modest increase in the 
minimum wage will help the working poor, without hurting small 
businesses substantially or over a period of time.
  Not long ago, the New York Times told the story of a town in my state 
of North Carolina and that town's experience the last time the minimum 
wage was raised.
  Jacksonville is located in Eastern North Carolina, just outside of my 
congressional district.
  The civilian population of Jacksonville is 80,000, but it is also 
home to 40,000 marines at Camp Lejeune.
  When the marines went to the Persian gulf war in 1990 and 1991, the 
economy of Jacksonville suffered--small businesses were hurt.
  But, according to the New York Times, when the minimum wage was last 
raised--for the first time in two decades--in 1991, the economy of 
Jacksonville did not suffer. Small businesses were not hurt.
  In fact, following that increase in the minimum wage, unemployment in 
Onslow County, where Jacksonville is situated, declined.
  In fact, unemployment declined by more than a half of a percent, 
following the first incremental increase, and by 1\1/2\ percent, 
following the second increase.
  And, notably, employment in the County's restaurants grew from 3,180, 
the year before the first increase, to 3,778, the year after the second 
increase.
  And, Mr. Speaker, the total number of restaurants in the County grew 
too during that same period of time, from 204 to 225.
  The experience in Onslow County was apparently similar to the 
experience of other counties throughout North Carolina, following the 
1991 minimum wage increase.
  A recent survey of employment practices in North Carolina after the 
1991 minimum wage increase, found that there was no significant drop in 
employment and no measurable increase in food prices.
  The survey also found that workers' wages actually increased by more 
than the required change.
  In another study, the State of New Jersey raised its minimum wage to 
$5.05 while Pennsylvania kept its minimum wage at $4.25.
  The researchers found that the number of low wage workers in New 
Jersey actually increased with an increase in the wage, while those in 
Pennsylvania remained the same.
  Mr. Speaker, sometimes we must commit our young people to war and, 
during those times we recognize that sacrifices must be made.
  Small businesses in Onslow County sacrificed for the Persian Gulf 
war.
  But, Mr. Speaker, we do not have to commit our young people or any of 
our citizens to poverty, especially when they are ready, willing and 
able to work.
  An increase in the minimum wage may not keep us out of war, but it 
can keep working Americans out of poverty.
  The President's proposal would increase the minimum wage 90 cents 
over 2 years--just as we did in 1991. In 1991, the increase enjoyed 
bipartisan support, with President George Bush signing the Bill.
  Since 1991, the minimum wage has remained constant, while the cost of 
living has risen 11 percent. Greater than one-third--36 percent--of all 
minimum wage workers are the sole wage earner in a family. Fifty-eight 
percent of all poor children have parents who work full-time.
  In my view, the best welfare reform is a job at a livable wage. 
Raising the minimum wage would make it easier for people to find an 
entry level job that pays better than a government subsidy, and creates 
a strong incentive to choose work over welfare.
  That same New York Times article profiled a young woman waitress, who 
was saving to buy a new, $20,000 mobile home to replace the one she 
bought used for $2,500. It seems her goal is not threatened by a 
possible increase in the minimum wage.
  Notwithstanding the possible minimum wage increase, the competition 
just introduced a new menu, with lower prices.
  Let's pass H.R. 940, the minimum wage increase. It is the right thing 
to do. It is the fair thing to do. I care about small businesses, and 
it will not hurt small businesses.

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