WILL DEMOCRATS PUSH ANTI-POVERTY MEASURES?
BY JULIANNE MALVEAUX
The unemployment rate rose slightly in June, from 4.4 percent to 4.5
percent. As always, when that rate rises, the disparity between African
American unemployment rates and those of others is stunning. While the rate
for white workers remained below 4 percent in June, the rate for African
Americans workers was 8.4 percent. The rate for Hispanics, at 6 percent, was
a percentage point higher than a year ago.
Because African American unemployment rates are below the double-digit
levels that have been the rule, not the exception in the last 50 years, some
think that the 8.4 percent rates measure improvement. But the labor markets
softening of the past six months is clear, not only in unemployment rate
date, but also in the number of people who have left the labor force, and an
employment population ratio that is falling. While the level of poverty, at
25 percent for African Americans, is lower than it has been in a decade, that
rate shows signs of being stuck. And since fewer people depend on income
maintenance programs, one of the few ways the poverty rate can be lowered
further is by increasing the minimum wage.
The minimum wage last rose in 1996. Since then, though inflation rates
have been relatively low, there has been about 7 percent inflation in the
past five years. If the minimum wage had maintained its buying value since
1980, it would be $6.85 an hour today, not $5.15. Now that political control
of the Senate has shifted to the Democrats, it is likely that minimum wage
legislation will be introduced. However, it is also likely that Senate
Republicans will insist on cutting business taxes in exchange for increasing
minimum wages. Thanks to the Bush tax cut, workers at the bottom are the
only ones who haven't seen much of a benefit either from eight years of
economic expansion, or from the current tax-cutting craze. In 1996, the
AFL-CIO organized a campaign because “American Needs A Raise”. Five years
later, another raise is needed, yet sympathy for minimum wage workers seems
scant.
The transfer of power from Republicans to Democrats frankly hasn't
energized Democrats to embrace their traditional base or to be aggressive on
antipoverty measures. The prevailing point of view in the nation these days
seems to be that poor people are to blame for their own poverty. To be
sure, Democrats have approached the health care aspects of poverty,
attempting to increase the number of people who have access to health care.
But increasing minimum wages, and increasing the earned income tax credit
puts more money in poor people’s pockets.
Someone who works full-time, year-round and earns the minimum wage earns
just $10, 712 a year, about $2000 less than the poverty line for a family of
three. Granted, some qualify for federal programs such as food stamps or
subsidized housing, that boost their wages a bit. Most of those who qualify
for these programs, though, don’t participate in them, in some cases because
information is scant. In the case of housing, just a fraction of those who
qualify can benefit from subsidized housing because waiting lists are long
and availability for subsidized housing is scarce.
Measuring minimum wage income on a full-time basis may overstate income,
many minimum wage workers don’t work full-time, full year because they can’t
find that kind of work. They work part time, or they cobble together
part-time jobs. Their situation is compounded by their lack of access to
benefits. In the long run, their economic status is also affected by the
fact that most minimum wage jobs do not provide pensions, vacation time, or
other amenities. Democratic leaders often speak of these workers as “the
least and the left out”. Now, they have the opportunity to provide vehicles
for their inclusion by increasing the minimum wage.
Organizations like the NAACP worked hard to get out the vote in the 2000
election, and though they enjoyed some success, those with higher incomes
were far more likely to vote than those that were poor. Why? Poor folks
look at the political process and ask, “What have you done for me lately?”
and too often the answer is “not much”. Senate Democrats have the
opportunity to change that by increasing the minimum wage. Doing so clearly
energizes part of their base, but failing to do so reinforces cynicism and
the notion that politics is about power, not people. If those an the bottom
don’t see the difference between a Senate led by Democrats and one led by
Republicans, they are not likely to turn out in 2002, when control of the
Congress will be up for grabs.