[Congressional Record (Bound Edition), Volume 150 (2004), Part 17]
[Extensions of Remarks]
[Page 23438]
[From the U.S. Government Publishing Office, www.gpo.gov]




        ECONOMISTS ENDORSE INCREASING THE MINIMUM WAGE TO $7.00

                                 ______
                                 

                           HON. GEORGE MILLER

                             of california

                    in the house of representatives

                        Friday, October 8, 2004

  Mr. GEORGE MILLER of California. Mr. Speaker, increasing the minimum 
wage is a vital issue for working families across the country. The 
minimum wage has not been increased in 7 years. The value of the last 
minimum wage increase has been fully eroded. Today, the minimum wage is 
worth less than it has been in 46 out of the previous 48 years. As a 
percentage of the hourly wage of nonsupervisory employees, the minimum 
wage is at its lowest level in 55 years. This decline is causing 
serious hardships for low-income families.
  To address this problem, I introduced H.R. 4256, the ``Fair Minimum 
Wage Act of 2004,'' which increases the minimum in three steps from its 
current level of $5.15 to $7.00. Ninety-four of my colleagues have 
joined me in sponsoring this legislation. On Wednesday, more than 562 
prominent economists--including 4 Nobel Prize winners in economics and 
7 past presidents of the American Economic Association--are joining us 
in endorsing an increase in the Federal minimum wage to $7.00.
  In their endorsement, these economists say, ``We believe that a 
modest increase in the minimum wage would improve the well-being of 
low-wage workers and would not have the adverse effects that critics 
have claimed.''
  They go on to state:

       As economists who are concerned about the problems facing 
     low-wage workers, we believe the Fair Minimum Wage Act of 
     2004's proposed phased-in increase in the federal minimum 
     wage to $7.00 falls well within the range of options where 
     the benefits to the labor market, workers, and the overall 
     economy would be positive.

  Below is a copy of the economists' statement. A complete list of the 
cosigners can be found on the Economic Policy Institute's WEB site at: 
http://www.epinet.org/content.cfm/minwagestmt2004.

 It's Time for a Raise--Hundreds of Economists Support a Minimum Wage 
                                Increase

       The minimum wage has been an important part of our nation's 
     economy for 65 years. It is based on the principle of valuing 
     work by establishing an hourly wage floor beneath which 
     employers cannot pay their workers. In so doing, the minimum 
     wage helps to equalize the imbalance in bargaining power that 
     low-wage workers face in the labor market. The minimum wage 
     is also an important tool in fighting poverty.
       The value of the 1997 increase in the federal minimum wage 
     has been fully eroded. The real value of today's federal 
     minimum wage is less than it has been in 46 out of the last 
     48 years. Moreover, the ratio of the minimum wage to the 
     average hourly wage of non-supervisory workers is 33%, its 
     lowest level in 55 years. This decline is causing hardship 
     for low-wage workers and their families.
       We believe that a modest increase in the minimum wage would 
     improve the well-being of low-wage workers and would not have 
     the adverse effects that critics have claimed. In particular, 
     we share the view the Council of Economic Advisers expressed 
     in the 1999 Economic Report of the President that ``the 
     weight of the evidence suggests that modest increases in the 
     minimum wage have had very little or no effect on 
     employment.'' While controversy about the precise employment 
     effects of the minimum wage continues, research has shown 
     that most of the beneficiaries are adults, most are female, 
     and the vast majority are members of low-income working 
     families.
       As economists who are concerned about the problems facing 
     low-wage workers, we believe the Fair Minimum Wage Act of 
     2004's proposed phased-in increase in the federal minimum 
     wage to $7.00 falls well within the range of options where 
     the benefits to the labor market, workers, and the overall 
     economy would be positive.
       Twelve states and the District of Columbia have set their 
     minimum wages above the federal level. Additional states, 
     including Florida, Nevada, and New York, are considering 
     similar measures. As with a federal increase, modest 
     increases in state minimum wages in the range of $1.00 to 
     $2.00 can significantly improve the lives of low-income 
     workers and their families, without the adverse effects that 
     critics have claimed.

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