Personal Responsibility and Individual Development for Everyone Act

PERSONAL RESPONSIBILITY AND INDIVIDUAL DEVELOPMENT FOR EVERYONE ACT

Mr. REED. Mr. President, I rise in support of the amendment offered by Senators BOXER and KENNEDY to raise the minimum wage.

The last time we increased the minimum wage was in 1997, and workers have already lost all of those gains of that increase. To have the purchasing power the minimum wage had in 1968, the minimum wage would have to be more than $8 an hour, not the $5.15 today.

In 1968, we could afford it. In 1968, we could provide the wages that would enable Americans to save for homes, to purchase homes, to save for college education, and to educate young people. Today, working Americans do not have that opportunity because the minimum wage is not sufficient to support a family and support the aspirations that all Americans have to better themselves and their children.

Indeed, what is very startling is if we had increased the minimum wage at the same rate CEO compensation had increased, the minimum wage today would be $22 an hour. In fact, it raises the fundamental question we will address over many months and years ahead, which is whether the rest of the world is going to become like the United States with a strong middle class with opportunities to move forward or will we become more like the rest of the world with a huge divergence between the very wealthy and those who are working for very little.

I believe we have to have a society that continues to produce a strong middle class, that continues to make work something that allows an individual to provide for their families and to aspire to all of the dreams of American home ownership, education for their children, and a comfortable and secure retirement.

Indeed, the fact that the minimum wage has relatively decreased has contributed to a doubling of poverty. A minimum wage earner for a family of three who works 40 hours a week 52 weeks a year earns $10,700. That is $4,500 below the poverty line. Today, if you are working 40 hours a week for minimum wage, you are in poverty.

The proposed increase would bring the minimum wage to $7 an hour, and even this modest increase would only raise the annual salary of families to about $14,000.

It is not sufficient to replace what people had in 1968. It is not sufficient to ensure all families are above poverty. But increasing the minimum wage will at least give more opportunity, more hope, and more sustenance to the families in America.

Today, one in five children lives below the poverty line in our Nation. This is the richest Nation in the world. That poverty has an effect on them; indeed, in the long run, it has an effect on everyone. There is an adage: You can pay now or you can pay later. We are not paying now and we will pay later. We pay later in terms of children who do not have the educational skills or the health to become the most constructive workers in our society they could become. In fact, some of them, unfortunately, wander into crime and other areas which cost us immensely. We have to be able to ensure people can afford to live in this country.

One of the other aspects of the minimum wage is a family earning a minimum wage in this country cannot effectively afford a two-bedroom apartment in any of the major metropolitan areas and in many rural areas. That is unfortunate. Without proper housing, how can one ensure family stability and the opportunity to move up in society?

We all understand and we all praise the hard-working Americans who, day in and day out, go to their jobs and labor for their families and communities. But too many of them are working at wages that do not reward this great effort. We can do something and should do something about that by increasing the minimum wage.

We should recognize and understand by increasing the minimum wage, we are not likely to have any negative impact on our economy. In fact, we will probably stimulate our economic activity. In the 7 years after the last minimum wage increase was enacted, there were nearly 11 million new jobs added at the pace of 218,000 jobs per month. There was no break in employment because the minimum wage went up. There were more Americans with more disposable income, buying more goods and services in our economy.

Most people, through my experience, who are working in jobs that pay the minimum wage or slightly above the minimum wage, tend to spend a good deal of their income on taking care of children, on taking care of their rent, on taking care of things that put money into our economy today.

We have to do this. Indeed, it would benefit our economy, not just those recipients of increased wages.

There are about 7 million workers and a third of working women who will benefit. I hope we can move forward and ensure this minimum wage is increased.