Could Low Wages Actually Be Responsible For The Increase In Poverty?

TruthOut10

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Dec 3, 2012
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“I really want people to understand that we all work just as hard as the next person that’s in a business suit,” says Tamika Maxwell, mother of three, describing her work as a janitor in Cincinnati, her hometown.

Along with 1,000 colleagues in the city, Maxwell hopes that current negotiations between SEIU and the city’s cleaning contractors will raise their $9.80 hourly wage—which, for annual full-time work, still leaves a family of three below the federal poverty line and relying on food stamps and Medicaid. In essence, the state ends up subsidizing corporations to continue paying people a non-living wage.

“My paycheck is the same amount as my Duke Energy bill,” says Maxwell. “And you know they don’t care—they will cut you off if you don’t have their money.”

Maxwell works part-time while also pursuing a business degree at Cincinnati State. She’s now employed by Scioto Services, which recently won the contract for the Public Defender’s office building that she has cleaned for four years. The company retained Maxwell but cut back all of the janitors’ hours. Instead of working the 5–10 pm shift five days per week, Maxwell now works only four.

“That’s a big deal when you’re only making $9.80 an hour,” she says.

But perhaps what is most frustrating to Maxwell and her colleagues is that among the cleaning contractors’ clients are some of the richest companies in the world. Macy’s, for example, made $1.25 billion in profits last year; Fifth Third Bancorp took in $1.3 billion; and Kroger netted more than $600 million. In all, thirteen Fortune 1000 companies with their corporate headquarters in Cincinnati earned combined profits of nearly $17 billion in 2011. If any of them told the cleaning contractors to pay a living wage, the contractors would do so, and would pass the additional cost onto the multibillion-dollar corporations.

This Week in Poverty: The Fiscal Cliff and the Janitors Who Are Already on It | The Nation
 
If increasing min. wage solved poverty we would have done it already.

do you notice how pure liberal ignorance always leads them to the simpliest of solutions. THey have 1000 ways to cure poverty and one is dumber than the next one.

Why not make everyone a lot richer and life a whole lot sweeter by merely giving everyone a 500% raise tomorrow!!?

A liberal will have no idea whatsoever why that would not work!
 
Granny says, "Dat's right - under Obama the more ya make, the behinder ya get...
:mad:
BLS: Real Wages Declined in 3rd Quarter; Down 3.2% Under Obama
November 1, 2013 - The real median earnings of both men and women dropped in the third quarter of 2013 and are down 3.2 percent since President Barack Obama took office in the first quarter of 2009, according to data released today by the Bureau of Labor Statistics.
In non-inflation-adjusted dollars, Americans who worked full-time for a wage or salary had median usual weekly earnings of $775 in second quarter of 2013 and $777 in the third quarter. In current dollars that was $2-per-week increase. However, when adjusted for inflation, median earnings actually declined from the second to the third quarter, according to BLS. BLS tracks median earnings not only in current dolalrs but also in constant 1982-84 dollars. Using that inlation-adjusted measure, full-time American wage and salary workers earned a median of $334 per week in the second quarter of this year, but only $333 per week in the third quarter.

Real median weekly earnings dropped for both male and female full-time workers during the quarter. The median weekly earnings for men dropped from $372 in the second quarter to $368 in the third, and the median weekly earnings for women dropped from $304 to $302. When Obama took office in the first quarter of 2009, median weekly earnings for full-time wage and salary workers was $344. At that time, the median weekly earnings for men were $384 and the median weekly earnings for women were $304.

Thus, overall real median weekly earnings dropped by $11 between the first quarter of 2009 and the third quarter of 2013 (from $344 to $333). That is a real decline of 3.2 percent. Men’s real median weekly earnings have dropped $16 dollars since Obama took office (from $384 to $368). That is a real drop of 4.2 percent. Women’s real median weekly earnings have dropped $2 since Obama took office (declining from $304 to $302). That is a real drop of 0.66 percent.

- See more at: BLS: Real Wages Declined in 3rd Quarter; Down 3.2% Under Obama | CNS News

See also:

Since Bernanke, Inflation Increases 43% More Under Obama Than Bush
October 30, 2013 -- Since Ben Bernanke has been in control of the Federal Reserve, inflation has increased 43% more under President Barack Obama than George W. Bush, according to data from the Bureau of Labor Statistics (BLS).
“Inflation can be defined as the overall general upward price improvement of goods and services in an economy,” the BLS said. By evaluating the Consumer Price Index (CPI) data, increases in inflation can be evaluated. The CPI is "a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services," states the BLS.

When Bernanke first took control of the Federal Reserve in 2006 while Bush was in office, the annual average CPI for all urban consumers was 201.6. When Bush left office in 2009, the annual average CPI rose to 214.537, a 6.4% increase. Since that time, while Obama has been in office, inflation has increased by 9.14%. The most recent CPI data, released on Oct. 30, 2013 finds that the October average for CPI is 234.149. The percentage increase from 6.4% to 9.14% is 42.81% or, rounded, 43%.

Earlier this year, the Fed began pumping billions into the economy with its $85 billion-per-month program of quantitative easing. “However, the Fed realizes that printing billions of new dollars each month could raise inflation in the future, which is what Bernanke means by weighing the benefits of lower unemployment with the costs of possibly higher inflation,” CNSNews.com reported earlier this year.

- See more at: http://cnsnews.com/news/article/ali...43-more-under-obama-bush#sthash.ZtimTr4R.dpuf
 
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“I really want people to understand that we all work just as hard as the next person that’s in a business suit”...
--so why don't she get paid what Mr. Business Suit get paid --huh? huh?

OK, back to real life. If she looked as good and sang as good as the lady on TV then maybe she'd get paid what the lady on TV gets paid. If she could pass the bar exam and convince a jury to give her client a jillion bux, then she'd get paid what the high priced lawyer gets. If she could get an MD license and save lives with a scalpel then she'd get paid what the fancy doctor gets paid.

She can't so she doesn't. It doesn't matter if she thinks she's working as hard, she just isn't working as well.
 

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