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Washington, DC—Today Congressman David Wu joined Democrats in an attempt to bring H.R. 2429, the Fair Minimum Wage Act of 2005, to the House floor for a vote. H.R. 2429 would raise the federal minimum wage from $5.15 an hour to Oregon’s level of $7.25 over a two-year period. Unfortunately, the effort failed along party lines with 223 Republicans voting against an effort that would have allowed a recorded vote on H.R. 2429.
“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," stated Congressman Wu. "The longer Congress continues to sit idle and allows the value of the minimum wage to tumble downward, the more hard-working Americans we sentence to a life of poverty."
Over the past few months, Congressman Wu has led the effort to gather support for H.R. 2429. Congressman Wu authored a letter to encourage other members of Congress to join as cosponsors of H.R. 2429. To date, there are 110 cosponsors.
Congressman Wu also held an event in Oregon last week with union representatives and employees who helped to deliver a strong message to working families across America in support of raising the federal minimum wage.
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.
FACTS ABOUT RAISING THE MINIMUM WAGE:
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).
For more information on the facts referenced above, visit:
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