The Incredible Shrinking Wage: Senators Vote Down A New Minimum

On March 7, 2005, the U.S. Senate rejected proposals to raise the minimum wage. Both Democrats and Republicans proposed increased wages, but neither party could agree to the other’s plan; so for now, the minimum wage will rest at $5.15/hour, where it has sat since 1997.

The Democrats’ plan -- $7.25 per hour

Senior Senator Edward Kennedy (D-Massachusetts) proposed a $2.10 increase over 26 months, but the measure was defeated 49-46.

Four Republicans voted in favor of the plan, including Pete Domenici of New Mexico, Mike DeWine of Ohio, Lincoln Chaffee of Rhode Island, and Norm Coleman of Minnesota. Three Democrats missed the vote -- Barbara Mikulski of Maryland, Kent Conrad of North Dakota, and Max Baucus of Montana -- all of whom are assumed to be in favor of the proposal.

In the future, Kennedy may be able to get the 51 votes he needs to pass the measure. And he may have 50 already -- Republican Arlen Specter of Pennsylvania, who was absent from the vote, has voiced support for the plan.

But that one last vote may be hard to get, particularly if it’s the deciding vote. Republicans in Congress are officially opposed to a wage increase and The White House has kept silent on the matter.

However, Kennedy may win much public support if he continues to voice one of his most poignant arguments: the minimum wage has remained flat for eight years, but Senators have approved a $28,500 pay increase for themselves over the last five years.

The Republican counter-plan -- $6.25 per hour

Republican Senator Rick Santorum (Pennsylvania) proposed an alternative plan - a $1.10 raise over 18 months and $4.3 billion in tax cuts for small businesses. Santorum’s idea was widely defeated at 38-61, with both Republicans and Democrats voting against it.

Many Republicans are firmly against any wage increase, and many Democrats felt $6.25/hour was not enough. Further, Democrats oppose a portion of Santorum’s proposal that allows businesses to pay overtime for work beyond 80 hours in two weeks, instead of 40 hours in a single week. This change would allow hourly employees to work as many as 50 hours in a week without overtime pay.

Destined for failure

The minimum wage proposals required at least 60 votes to pass, instead of the usual 51 votes. In a Senate nearly split along partisan lines, a supermajority of 60 votes is difficult to achieve, so the proposals were basically destined for failure.

The unusual 60-vote requirement was the result of a compromise between the two parties - both sides recognized that the other was ready to use a filibuster, so they decided to go ahead and vote, but prevent both measures from passing.

The deal allows both sides to say that they’ve tried for a minimum wage increase, allowing members to get on record with a vote. And Democrats say the attempt is merely a first try at raising the minimum wage; they plan to bring similar legislation to the floor in the future.

Arguments for and against a higher minimum wage

Some Republicans say that raising the minimum wage would cause layoffs, since employers may make up the difference by maintaining fewer workers.

Democrats doubt this result, saying that better-paid workers will spend their new earnings, causing companies to see greater sales and giving the economy a boost.

But critics argue that the economic lift would be short-lived since a likely response is a quick rise in prices as employers pass on their costs to customers. The result would then be inflation, which Republicans are calling "hyper inflation."

But Democrats say that inflation is precisely the reason that Congress should raise the minimum wage. Since it hasn’t changed since 1997, its worth is sinking as inflation is rising. In fact, the average minimum wage between1955-1982 averaged about $6.90/hour in today’s dollars. From 1982 to the present, the average has been about $1.50/hour less, at $5.40 an hour. So the minimum wage is deteriorating over time, a trend that gravely affects the nation’s poorest workers.

What do you think?

WomenMatter is a place to discuss life issues with other women. We don’t want to wedge women apart, but rather bring them together to dialogue. To log onto one of our online forums, click here.

WomenMatter encourages women to educate themselves on the issues and then approach their representatives with ideas.

Even though the election is over, your voice is vital. Make sure your leaders know what’s important to you. To see how your representatives vote and to contact them, click here.

WomenMatter is dedicated to empowering women to participate in the political process. To do this we have invested in the most in-depth NONPARTISAN information, because we trust each woman to make up her own mind.

• We track nine issues every week and update this website several times a week.
• We launch after school GirlsMatter Clubs in middle and high schools to grow the next generation of politically aware women through a full curriculum and startup kit on girlsmatter.com.
• We do continuous research to make sure that we are meeting the needs of women across the country of all ages, races, incomes, preferences, and religions.
• We provide partnerships with nonpartisan organizations that provide services to women and advocate for them.

We offer all our services free of charge without memberships or subscriptions. To help us maintain this work - not just in election years but as a continuing part of women’s lives - please make a tax deductible donation, click here.

Article Posted on: 3/18/2005