March 3, 2016 4:52 AM

Raising the minimum wage: You might think we can't afford it; Oregon begs to differ

SALEM — Gov. Kate Brown signed historic increases to the minimum wage into law Wednesday, claiming a major win for Democrats and promising to uplift the working poor. Speaking to reporters in her ceremonial office at the Capitol, Brown said the bill is a well-crafted compromise between labor groups and businesses that demonstrates Oregon’s wise culture of governing…. The bill gives Oregon the highest statewide minimum wage rates in the nation, to $14.75 inside Portland’s urban growth boundary, $13.50 in midsize counties and $12.50 in rural areas by 2022. President Barack Obama lauded Brown, saying in a statement: “I commend the Oregon Legislature and Governor Kate Brown for taking action to raise their state’s minimum wage…Congress needs to keep up with the rest of the country. They need to act, and finally give America a raise. And until they do, I’ll continue to encourage states, cities, counties and companies to act on their own to support hardworking families.”

I’m excited that my adopted home state has taken a step towards ensuring that everyone who works has the opportunity to earn a living wage. The bill signed by the Governor, whom I’ve met and have nothing but respect for, represents recognition of the truth that we simply cannot continue allowing business to pay workers wage they cannot live on. No longer should we tolerate a labor environment in which “minimum wage” means more than “I’d pay you even less if I could, but the government says I can’t.”

In the rush to pat ourselves on the back regarding this accomplishment, let’s not ignore the reality that $14.75 will not be worth in 2022 nearly what it is now. Raising the minimum wage is a good thing…but we should remember that it’s not just about a number. There’s nothing to indicate that $14.75/hr. is some sort of magic number, a panacea that will lift Oregonians at the bottom of the economic food chain out of poverty…but it’s a start.

Raising the minimum wage will have an impact on Oregonians across the board. There’s little doubt but that we’ll be paying more for many goods and services. The actual adverse impact is difficult to know, though I suspect it will be less than what naysayers in the business community believe and more than those advocating for the change will admit. Do I want to pay more for things I purchase? Of course not; who does? That said, I believe that we- all of us- have a responsibility to our fellow man. NO ONE who works full-time to support their family should make so little that they face a choice between feeding their children or keeping the lights on.

Will it change our family’s spending habits? Perhaps, but most likely not. When people make more, they spend more, so it’s entirely possible that any impact increasing the minimum wage has will be a wash. For my part, I’m willing to pay a bit more for things I need or want if it means that those serving me or attending to my needs are making enough to adequately care for their families.

Of all the things government does, caring for people is perhaps its most important task. The bill signed by Gov. Brown is a positive step, but it’s only one step. There’s still much more that needs to be done, but it sends the message that if Oregon can do this, ALL states should be able to do the same.

Poverty is in no one’s best interest. Raising the minimum wage won’t eliminate poverty, but it should have a positive impact. If a company can pay its CEO millions, it can afford to pay frontline employees who make that salary possible more than $9/hr. It’s time to do the right thing by workers. Oregon just took a big step in that direction.

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This page contains a single entry by Jack Cluth published on March 3, 2016 4:52 AM.

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