Minimum Wage Freeze Cost American Workers $8.64 Trillion Since 2009

December 4, 2014–  Now that the mid-term elections have come and gone without any action being taken to raise the Federal minimum wage, it is unclear when, or if, any National legislation will be forthcoming. Throughout the current election season populist candidates were touting, seemingly revolutionary increases to the Federal minimum wage, with numbers, as high as, $15 per hour being debated.  Surprisingly, many of these pro-labor candidates were defeated in their election, or re-election, bids for office leaving the probability of immediate action abandoned. The complexion of the incoming Congress has already indicated its early opposition to major changes in this area.

So how does this inaction on the Federal Minimum wage issue impact the American workforce. According to the Center for Economic Policy and Research: “Congressional failure to raise the minimum wage is costing America’s working families and the economy overall. With millions of workers losing billions in pay since 2009 — and hundreds of billions of dollars since the high water mark for the minimum wage in 1968 — it’s no wonder families are falling farther behind and income inequality has exploded even as corporate profits and CEO compensation soar.”

The figure calculated by the CEPR, as of last Monday, is a staggering $6.84 trillion dollar in cumulative losses in wages to the American worker since 2009, as a result of the failure to increase the minimum wage.   Advocates for the increase argue that no legislative gridlock has damaged American workers more, and, possibly, the Amercan Economy.

While opponents of dramatic wage increases sound the alarms of corporate closures, outsourcing, and, general, economic calamity as a result of doubling the minimum wage they have failed to make, even, the slightest movement towards having this figure even, remotely, keep up with the cost of living. Meanwhile, as all indications are that certain segments of the economy are poised for a fiscal rebound from the depths of the Great Recession, the unemployed and underemployed are finding that having a job and working the maximum number of hours they are physically able to withstand is doing little to improve their chances at capturing even a glimpse of the American Dream that their parents told them so much about.

While relative inflation has been low during the period of time from 2009 to the present, one need only compare the isolated statistic of Food Inflation to the Federal minimum wage during this period to see the true impact on the American household. While wages have remained flat, according the US Department of Labor Statistics, Food Inflation has increased at a rate of 4.25% per year from 2009-2014. Combine this with dramatic, recent cuts in the Federal Food Assistance programs and it paints a picture of an underemployed, overworked, and hungry American Family.

If Ghandi was right, and “The True Measure of Any Society can found in how it treats its most vulnerable members” what does the U.S’s national lack of concern over the essential financial solvency of its most vulnerable workers say about it as a society?

 

If you, or someone you know has suffered from minimum wage issues, it is important that they immediately contact an experienced Minimum Wage Attorney.  A qualified attorney can help employees stand up for their rights and recover compensation for their lost wages. 

Leave a Reply

Your email address will not be published. Required fields are marked *