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Portland, OREGON—From Oregon to the steps of the U.S. Capitol, Congressman David Wu is leading the effort to urge the U.S. House to pass H.R. 2429, the Fair Minimum Wage Act of 2005. H.R. 2429 will raise the federal minimum wage from $5.15 an hour to Oregon’s level of $7.25 over a two-year period. Almost nine years have passed without an increase in the federal minimum wage. Meanwhile, the number of Americans who live in poverty has increased by 4.3 million since 2001.
Today Congressman Wu launched an effort to battle the myths about minimum wage increases with the help of Oregonians. Congressman Wu was joined by union representatives, employers, and employees at an event to deliver a strong message to working families across America in support of raising the federal minimum wage.
“While I strongly support efforts to increase employment, a job is not the complete answer to poverty. Far too many families who work full-time still live in poverty,” stated Congressman Wu. “History has shown that a minimum wage increase does not have any negative impact on employment or inflation. In fact, in the four years after the last minimum wage increase passed, the economy experienced its strongest growth in over three decades. It is time to raise the minimum wage for working Americans.”
FACT: The last federal minimum wage increase, from $4.25 to $5.15 in 1996-97, improved the earnings of 9.9 million workers (8.9% of the workforce), without negative economic consequences.
FACT: Studies by the Economic Policy Institute of previous federal minimum wage increases found no measurable negative impact on employment.
FACT: A study by the Fiscal Policy Institute of state minimum wages found no evidence of negative employment effects on small businesses.
FACT: In Oregon, minimum wage increases have not coincided with increases in the unemployment rate. The large increase in joblessness occurred in 2001, although the state minimum wage had not increased since 1999.
FACT: The effect of the last minimum wage increase in 1996-97 has been completely eroded by inflation. The inflation-adjusted value of the minimum wage is 26% lower in 2004 than it was in 1979.
FACT: In 1996, when Congress last raised the federal minimum wage, it was still well below the value of the minimum wage at its peak in 1968 at $8.49 (in 2005 dollars).
FACT: An estimated 7.3 million workers (5.8% of the workforce) would receive an increase in their hourly wage rate if the minimum wage were raised from $5.15 to $7.25 by June 2007. Of that amount, approximately 60% are women and 1.8 million are parents with children under 18.
FACT: The longer Congress sits idle and allows the value of the minimum wage to tumble downward, the more hard-working Americans we sentence to a life of poverty.
For more information on the facts referenced above, visit:
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