July 24, 2019 - Issue: Vol. 165, No. 125 — Daily Edition116th Congress (2019 - 2020) - 1st Session
RAISE THE WAGE ACT; Congressional Record Vol. 165, No. 125
(Extensions of Remarks - July 24, 2019)
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[Extensions of Remarks] [Page E981] From the Congressional Record Online through the Government Publishing Office [www.gpo.gov] RAISE THE WAGE ACT ______ speech of HON. ROBERT C. ``BOBBY'' SCOTT of virginia in the house of representatives Thursday, July 18, 2019 Mr. SCOTT of Virginia. Mr. Speaker, I include in the Record the following letter in support of H.R. 582, the Raise the Wage Act. Oxfam, July 16, 2019. Members of the U.S. House of Representatives. Ms. Eunice Ikene, Labor Policy Advisor at House Committee on Education and the Workforce. Dear Ms. Ikene and Members of Congress: On behalf of Oxfam America, I urge you to vote for the Raise the Wage Act (H.R. 582) and vote against any amendments that would weaken the bill. Oxfam America is an international development and relief agency committed to working for lasting solutions to poverty, hunger and social injustice in over 90 countries, including the United States. Oxfam has carried out development and humanitarian programs across the globe. Within the United States, we have focused our efforts to elevating the rights and life opportunities for historically disadvantaged workers in low-wage sectors. With a federal minimum wage of $7.25 an hour, a full-time worker may only make $15,080 a year, a salary that is almost $4,000 below the poverty line for a family of three. The Raise the Wage Act of 2019 would benefit over a quarter of the workforce: nearly 40 million workers and their families. The act would raise the federal minimum wage to $8.55 this year and increase it over the next five years until it reaches $15 in 2024, then adjust it each year to keep pace with the typical worker's wages. Here are six reasons why raising the wage makes sense. 1. It is long overdue. In the decade since it was last raised, the minimum wage has failed to keep up with inflation, failed to keep up with average wages, and--most dramatically--failed to keep up with incomes of the top 1 percent and CEOs, contributing to America's growing inequality. Low-wage workers are not benefiting from economic growth and productivity. If the minimum wage had kept pace with productivity increases, it would be around $20. Just 30 years ago, the average pay gap between CEOs and workers was 59 to 1; last year, it soared to 361 to 1. The average CEO makes $13,940,000, while a minimum wage worker makes $15,080: a gap of 924 to 1. 2. It would address longstanding racial and gender inequities. Historically marginalized people do more than their fair share of low-wage work, and would stand to benefit disproportionately from the bump. While 27 percent of the total workforce would benefit from the raise: 39 percent of Black and Latina women would benefit (vs. 18 percent of white men), 38 percent of African American workers would benefit, 33 percent of Latino workers would benefit, 32 percent of women workers would benefit (vs 22 percent of men). 3. It would reduce poverty. The bump from $290 a week to $600 a week would lift millions of family out of poverty. Two-thirds of all working people in poverty (67.3 percent) would see a raise in wages. 4. It would fuel economic growth. The roughly $120 billion extra paid to workers would be pumped back into the economy for necessities such as rent, food, clothes. Economists have long recognized that boosting purchasing power by putting money in people's pockets for consumer spending has positive ripple effects on the entire economy. In one recent poll, 67 percent of small business owners support the minimum wage increase to $15 an hour. They say it would spark consumer demand, which would enable them to retain or hire new employees. And raising the wage doesn't seem to compel employers to cut jobs. As states and cities across the country have raised wages, research has found no statistically significant effect on employment. 5. It would save taxpayers money and reduce use of government programs. When employers don't pay people enough to survive, those workers are compelled to seek government assistance, meaning taxpayers are essentially subsidizing the corporations. In 2016, EPI found that, among recipients of public assistance, most work or have a family member who works; and they are concentrated at the bottom of the pay scale. Raising wages for low-wage workers would ``unambiguously reduce net spending on public assistance, particularly among workers likely to be affected by a federal minimum-wage increase.'' 6. It's what the vast majority of Americans want. Vast majorities (up to three quarters, including a majority across party lines) support raising the wage. Even in a poll sponsored by the National Restaurant Association (which has worked to block state minimum wage increases and preempt local sick day laws), 71 percent of Americans indicated support for raising the wage, ``even if it also increases the cost of food and service to customers.'' In fact, over half the states have raised their minimum wages to restore basic fairness to the workforce. conclusion Raising the minimum wage offers benefits to workers, children, taxpayers, and the economy as a whole. It increases buying power and reduces the daily struggle for people to pay their basic expenses. It enables people to save for and invest in their future. It contributes toward building a work force that is healthier, more stable, better educated, and more productive. Raising the minimum age will require members of Congress of both parties to be willing to overcome the divide: to be open to the debate, to consider the needs of hard-working constituents and taxpayers, to consider the wide range of benefits--and ultimately, to give a raise to the people who need it the most. We strongly urge every member of Congress to vote for the Raise the Wage Act and enact this important piece of legislation as quickly as possible. Sincerely, Minor Sinclair, Director, US Domestic Program, Oxfam America. ____________________