7.6 - Time For A Change

As of the writing of this book it has been almost a decade since the federal minimum wage was raised. Every year the cost of living has risen and workers at the bottom pay levels have less purchasing power. It is no coincidence that the number of working poor is growing. In fact, food stamps, subsidized housing, government sponsored healthcare programs, and other government programs for the poor are now a crucial resource for a large numbers of hardworking adults who have full-time low- wage employment. Many of these programs were originally conceived for citizens who lost their jobs, not for those with jobs.

While real wages for low and median-wage employees has remained stagnant or fallen, CEO pay has risen at an astronomical rate. In 1980, CEOs were paid about forty times as much as an ordinary employee. Now it’s not unusual for CEO pay to be 500 times as much as the pay of an ordinary employee.35

The growing gap between the rich and poor is ultimately not good for our nation. In the last twentyfive years our nation has 370d in ways that should cause us concern. In 1968, GM was one of the largest employers in the U.S., paying employees an average of about $29,000 per year (amount adjusted for today’s dollars) with excellent benefits. 36 Today Wal-Mart is the biggest employer in the U.S., paying the average full-time worker about $17,000 per year with very poor benefits.37

CEO Wage Ratios Off


”One way to measure hierarchy in a society such as ours is to look at how much CEOs are paid compared to ordinary workers. In the U.S., they are paid about 500 times as much (up from a 40 to one ratio in 1980). In no other country today is the ratio bigger than 50 to one. In Western Europe, Canada, and Japan, CEOs make 20 to 30 times what the average worker makes, and often less.”

from the essay by Stephen Bezruchka, titled “The (Bigger) Picture of Health,” published in the book, Take Back Your Time.

America prides itself on being a land of opportunity, where hard work earns the comfort and security that is the American dream. Better still, a common American dream is to raise your children so their success exceeds your own. It is a good dream, and one we don’t want to loose. A large educated middle class makes our country strong. We don’t want to become a nation of winners and losers, rich and poor, yet the data shows us moving in this direction. Our government is an entity that has some key opportunities to level the playing field for citizens that are struggling. One of those opportunities is raising the federal minimum wage.

A full-time working mother should be able to support her family at the current minimum wage, yet even two full-time working parents often struggle. The minimum wage must be raised. We must do this not only because we value our workers and want to compensate them accordingly (and help them avoid needing subsidies and/or welfare to live), but also because we recognize that parents across America need sufficient income to raise healthy children who become productive, gainfully employed adults.

Something is clearly amiss when the federal minimum wage is completely insufficient for basic subsistence. This is an issue that affects all Americans, but it’s particularly important for women, who still earn less than men for the same work, and even more so for working mothers, who earn less than women without children. Mothers need to be paid fairly. This means equal pay for equal work, and a minimum wage that provides full-time workers with a basic livelihood.