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Minimum wage raise for lowest paid
Eight states raised the minimum wage on Jan. 1. For one worker on the receiving end, it's the difference of being able to buy toothpaste.
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Kai Ryssdal: The end of the year is typically bonus-time for a lot of people who work in corporate America. By contrast, some of the working poor get their small bumps at the beginning.
Eight states increased their minimum wages yesterday to keep pace with inflation. Depending on where you live, the increase was between 28 and 37 cents. But as Marketplace's Jeff Tyler reports, that small change can have a big impact.
Jeff Tyler: Four years ago, Kelly Wiedemer didn’t count her pennies. With a job in financial services, she didn’t need to.
Kelly Wiedemer: My base salary was 67.5, plus bonus. So I was right at the $70,000 mark.
Then she lost her job. In her mid-40s, Wiedemer couldn’t find a comparable position in her industry. After years with no work, she took a job as a gas station cashier for minimum wage.
Wiedemer: I’m now the working poor. I’m now among the working poor for the first time in my life.
She lives in Colorado, one of eight states that increased the minimum wage to match inflation.
Wiedemer: The increase helps to offset the rising costs of food at the grocery store. Effectively, without that increase it would be just a lot like having a pay cut, frankly. Because that same dollar won’t go as far at the grocery store.
In Colorado, the raise is a modest 28 cents. But it’s worth considering that, in the last year, Wiedemer has had do without things like toothpaste or shampoo. Saving pennies for the essentials.
Wiedemer: Even more important is – food for my dogs. So, everyone one of those pennies and those dollars add up to help pay for those things that I use to take for granted.
The recession has forced more Americans into low-wage jobs, where the pay has been shrinking.
Paul Sonn: During the recession, the median wage in low-wage occupations fell 2.3 percent.
That’s Paul Sonn with the National Employment Law Project. He says boosting the minimum-wage helps counter the impact of flat or falling wages.
Sonn: That’s not only hard for working families at the bottom, but it’s terrible for our economy.
He says the economy benefits when poor people get a raise because they typically spend that money immediately. For Kelly Wiedemer, that raise also helps offset another trend in low-wage industries.
Wiedemer: My hours are going to be cut. They’ve informed me that my hours will be reduced here starting probably next week.
Happy New Year, Kelly.
I’m Jeff Tyler for Marketplace.
I'm sure 'AliceLA' has her heart in the right place. However, one must question is it any of our right to judge Kelley's decisions? The best any of us can do is make our own choices of what we feel is right for ousrselves and others impacted by the result. Sadly sometimes our choices are not between 2 good things, but between 'bad' and 'worse'. I have been one of the working poor (fortunately many years ago) and now have more than I could ever want or need. I think that during this period of political and economical turmoil - all bets are off. Simplistic as it may sound, let's just help each other. That is in my humble opinion will make this country greater.
Daniel,
Your comment that we must sometimes choose between 'bad' and 'worse' applies to millions of unemployed and under-employed Americans. It is difficult, to say the least and is made only more difficult because of the prolonged and still ongoing struggles due to joblessness. This has led to a lifestyle of true poverty for millions of 'formerly middle-class' Americans.
I refer to the last 3-4 for years of my life as a social/economic and political awakening. It's taken me a long time to get here, but I'm here. And I'm here (in an 'enlightene/awakened' state of mind & awareness) for good.
I thank you as well as SteeleyJay for your generous offer, wanting to help. I am 'OK', relatively speaking, thanks only to the help from my mom in allowing me and my dog to stay here. My job, at least until my hours are cut, does allow me to purchase basic necessities, including food for my dog (who is to me like the child I never had). I'm also able to help pay for some of the utility expenses such as the phone/internet bill. Otherwise, she's paying - and has been paying for any/all other living expenses related to shelter, heat etc.
Thank you both for your thoughtful compassion, generosity & kind words, but I'm OK. There are many, many others in much worse situations than I am. God works in mysterious ways. Thank you for reminding me that there are still many reasons - and many good people - to be thankful for...
Kelly
AliceLA -
Like so many others do, you have made some very ignorant, judgemental and incorrect assumptions. No, I never chose to 'forego' toothpaste and shampoo so that I could by food for my dog. There have been many times when I was unable to purchase toothpaste, shampoo, toilet paper and yes, food for my dog. These items can not be purchased with food stamps - something I never in my life dreamed I'd have to rely on nor is it something I'm proud of.
There was one occasion when I had to choose between buying something for myself to eat or something for my dog to eat. My dog got to eat.
"The recession has forced more Americans into low-wage jobs, where the pay has been shrinking."
Does my part time (ie 8-16 hrs/week), minimum wage job count as 'finding a job'? Sure, it helps push down the unemployment rate (only if one ignores the U-6 measure of unemployment which includes the under-employed and dicouraged workers), but it does nothing for the actual/literal (real life) unemployment crisis facing this country.
Let me also point out that as a 46-yr old with no children under the age of 18 yrs, who is not elderly or disabled (and also is not a military veteran) - I qualify for NO assistance other than food stamps. Shelter/housing, healthcare and/or the ability for people like myself to purchase toiletries and other basic necessities is of abolutely zero importance to this country and many in this society. Brutal, but honest truth, AliceLA.
My already struggling, 65 yr old mother (who was laid of for the 2nd time in a18 months just a few months ago) is effectively supporting me and has been doing so since my UI ran out in June 2010.
Let me also point out, that I paid my taxes, put myself through college as a night student and achieved the American Dream - until this recession hit.
Please try to refrain from making such judgemental, harsh and ignorant/incorrect assumptions about stories told by and about the long-term unemployed and underemployed in this country.
