The Watering Hole, Monday, December 9th, 2013: Minimum Wage Scrooge

Yes, I still occasionally read parts of Newsmax and Moneynews, just so that you won’t have to. You’re welcome.

The Moneynews email subject that caught my eye this time was “Fast-food Workers Rally for Higher Minimum Wage.” I wanted to see how they would spin this issue. Surprisingly, it didn’t seem to be skewed, with the one notable exception.

“Fast-food workers in hundreds of U.S. cities staged a day of rallies on Thursday to demand higher wages, saying the pay was too low to feed a family and forced most to accept public assistance.

The protests escalated a series of actions at several Walmart stores on Black Friday, the day after Thanksgiving, seeking to draw attention to workers at the lowest end of the wage scale.

The description of fast-food workers, once viewed mainly as teenagers looking for pocket money or a first job, has changed. Today’s fast-food worker is typically over 20, often raising a child, and 68 percent are the primary wage earners in their families, according to a report by the University of Illinois and the University of California, Berkeley.

About 100 workers in Chicago marched along Michigan Avenue with a large costumed Grinch, chanting: “We can’t survive on $7.25.” Protesters want the hourly U.S. minimum wage raised to $15 from $7.25.

In Kansas City, Missouri, Kizzy Sanders, 30, an employee at a local Popeye’s restaurant, joined about 100 protesters picketing fast-food restaurants in freezing temperatures.

“I love my job, I love the people I work with, but the $7.70 I make does not cut it,” said Sanders, a mother of three. “It doesn’t pay my bills, I can’t buy my kids anything for Christmas. I can’t even celebrate Christmas.”

Thursday’s protests were organized by groups such as “Fast Food Forward” and “Low Pay is Not OK” that have the support of labor union giant Service Employees International Union, which represents more than 2 million members including healthcare, janitorial and security workers.”

“Despite the involvement of organized labor, the protests are focused on wages, not unions, for the moment, said John Logan, a labor studies professor at San Francisco State University’s College of Business.

“The immediate goal is to focus national attention on the impact of poverty-level wages on employees and the negative impact of poverty-level wages for the public and the economy,” Logan said.

Data from the U.S. Census Bureau and public benefit programs show 52 percent of fast-food workers relying on at least one form of public assistance, between 2007 and 2011, according to the report from the University of California, Berkeley, and the University of Illinois.”

“Because the current minimum wage, on an inflation-adjusted basis, lags behind those of decades past, the purchasing power of minimum-wage earners has diminished.

Increasing the minimum wage, however, would not reduce poverty, said Michael Saltsman of the Employment Policies Institute, because employers will compensate by reducing staff and workers’ hours. Instead, they should expand the Earned Income Tax Credit, which provides a small-wage supplement for low-income families in the form of a tax refund, he said. A 2012 study published by the Employment Policies Institute found that states that increase the Earned Income Tax Credit by 1 percent saw a 1 percent drop in state poverty rates.
[Emphasis mine.]

“Others disagree. Christian Dorsey, director of external and governmental affairs for the Economic Policy Institute [the progressive organization with which Employment Policies Institute wants us to be confused], said tax credits should not let employers skimp on wages.

“Businesses have a responsibility to pay workers enough to keep them out of poverty,” Dorsey said. “The idea that we would simply not look at wages is passing off the problem to someone else.”

Yes, Employment Policies Institute, one of soulless lobbyist Rick Berman’s stable of “non-profits.”

Charity Navigator is a website which provides “information and ratings on charities”. Here’s an excerpt from their review of Employment Policies Institute:

Charity Navigator has become aware of the following information in connection with this charity:

During our analysis of this charity‚Äôs FYE 2011 Form 990, the document revealed that more than half of the Employment Policies Institute Foundation’s functional expenses were paid to its CEO Richard Berman’s for-profit management company, Berman and Company. The document revealed that, out of total expenses of $2.10 million, $1.17 million were paid to Berman and Company for staff[ing] and operat[ing] the day-to-day activities” of the charity.

Sourcewatch, too, provides lots of information regarding the tangled web of EPI and other Berman & Co. ‘non-profits.’ It’s a sweet, and profitable, arrangement for Berman & Co.

A quick glance at some of the ‘studies’, ‘press releases’ and ‘letters to the editor’ touted on Employment Policies Institute’s home page pretty much sums up whose side they’re on in the employer vs worker fight. And while Berman’s EPI should still be nursing their bruises after the recent thrashing given by Chris Hayes to one of Berman’s minions (who was unable to answer the simple question “how many economists do you have on your staff?”), instead, his “think-tanks” continue to crank out ludicrous reasoning for keeping workers from getting ahead.

It all comes back to what Bill Maher said several weeks ago: “Do you want smaller government with less handouts, or do you want a low minimum wage? Because you cannot have both.”

This is our daily open thread–don’t be shy!