[Congressional Record Volume 160, Number 56 (Monday, April 7, 2014)]
[Senate]
[Pages S2191-S2192]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
THE MINIMUM WAGE
Ms. HIRONO. Mr. President, growing up, my mother was a single parent.
She raised three children by herself. I know what it is like to run out
of money at the end of the month, what it is like when every dime
matters.
The minimum wage is a poverty wage. Today, the minimum wage hasn't
kept up with inflation. If the minimum wage had kept up with inflation
in 1968, the minimum wage today would be $10.68. If you do the math,
minimum wage workers today earn less than $15,000 per year. If you are
supporting a child or an elderly parent, that is a family income below
the Federal poverty line. Raising the minimum wage from $7.25 to $10.10
would help lift nearly a million workers and their families out of
poverty. In Hawaii, nearly 100,000 women would get a raise.
This is especially important for women. More and more women serve as
heads of households. And nearly two-thirds of minimum wage workers are
women. Nearly two-thirds of workers in tipped occupations are women.
The situation is even more dire in Hawaii, where the cost of living
is higher. In Hawaii, one out of five Hawaii women workers would get a
raise if we raised the minimum wage from $7.25 to $10.10. A person
working full time making $7.25 per hour makes $14,500 per year. The
average rent in Hawaii for a one-bedroom is $1,278. That is more than
$15,000 per year. That is why many in Hawaii have to work more than one
job.
And there are stories all across the country of women struggling.
Hawaii Catholic Charities recently shared their story with me of a
woman in Hawaii working for minimum wage who was unable to afford basic
living expenses for herself and her son. She had to move back in with
her parents. Over the course of a few years she was able to change jobs
to a department store, where she eventually earned $10 per hour. At
that wage she was able to contribute to her family's household expenses
and start a savings account for her son. We all hear stories like this
often. It's why we must raise the minimum wage--so that hard working
families have a chance at building a better life for themselves and
their children.
Some critics claim the minimum wage will cost jobs. The CBO report
looked at old studies and not the latest research. Just last week, a
Goldman Sachs report said the CBO estimate of 0.3 percent job loss is
too high because raising the minimum wage would actually increase
demand. Minimum-wage workers spend that money right away, at local
businesses in their communities. A survey of small business owners
found that three out of five supported raising the minimum wage. They
said a higher minimum wage would increase consumer spending on their
goods and services. The Goldman Sachs report said that States which
raised their minimum wage in 2014 actually created more jobs than other
states.
[[Page S2192]]
In Hawaii, a large part of our economy is hospitality and tourism.
Many workers earn the tipped minimum wage, which is lower than the
regular wage. I have met restaurant workers who can't afford to eat at
the restaurant where they work. I heard one mother say she had to
choose between buying diapers for her kids or eating lunch that day.
Women should not have to make that choice. Back in 2007, the last time
Congress raised the minimum wage, the restaurant industry said it would
cost their industry jobs. But in 2013, the restaurant industry forecast
said, ``Restaurants remain among the leaders in job creation.'' The
Bureau of Labor Statistics reports that between 2007 and 2013,
restaurants added 724,000 jobs.
Raising the minimum wage also saves taxpayer money on social
services. When companies pay a low minimum wage, workers in poverty
can't afford to eat. Taxpayers are picking up the tab--we're
subsidizing low-wage companies. If we raise the wage to $10.10, we
reduce taxpayer costs for the Supplemental Nutrition Assistance
Program, or food stamps, by $4.6 billion a year. In Hawaii, over 15,000
workers would no longer need SNAP beneifts.
In America, we believe that if you work hard and play by the rules,
you can get ahead. Let's increase the minimum wage, to give all
Americans a fair shot.
____________________