Minimum Wage Matters

Walmart business strategyThat’s exactly what the bosses want! They want us fighting over who has the bigger pile of crumbs so we don’t realize they made off with almost the whole damn cake.

Jens Rushing wrote those words, as part of a larger message that could be condensed even further into the popular warning, “Check yourself before you wreck yourself.” In writing his manifesto, Rushing’s aim was to implore workers to wake up and stop complaining about other workers getting a raise. Someone in his own field, for instance, could easily feel resentment about a fry-basket jockey making the same hourly wage as a paramedic. Rushing and his colleagues are highly trained, extremely competent, and responsible for life-and-death decisions. But he asks everybody to stop and analyze the situation.

Among professional comics, one school of thought divides humor into “punching up” and “punching down.” Some consider it improper to make jokes at the expense of anyone who is perceived as less fortunate than the comic and the current audience. Only the powerful can be attacked: only punching up is cool.

But the corporate CEOs and politicians who own everything hope for the opposite. They want us all to punch down. They want us to form warring clans along every possible divisive line—gender and race being the most obvious, but also American-born or newly arrived; white-collar or blue-collar; tech-savvy or future-shocked; housed or experiencing homelessness. Sometimes it seems that we peasants of the “99%” enjoy finding or inventing any reason to fight amongst ourselves. Meanwhile, the Big Bosses are delighted because all the strife diverts our attention from their machinations. As Rushing says:

Why are you angry about fast food workers making two bucks more an hour when your CEO makes four hundred TIMES what you do?

On the subject of bosses that keep the whole damn cake, could there be a more perfect example than Walmart? The CEO makes more than a 1,000 times what the average “associate” makes. And the family that owns a large portion of the company? The six wealthiest members hold more wealth than the combined entire bottom 40 percent of Americans. Four of the Waltons are worth more than $30 billion apiece. Last year, the Walmart shareholders made $7.2 billion.

Walmart is America’s largest private sector employer, and if it were a country, it would have the 26th largest economy in the world. It has 2.2 million employees, which is more than the population of Houston, TX. Just because 25 people apply for every job opening, Walmart feels justified in practicing piracy. People who specialize in figuring out these things say that Walmart could pay workers $14.89 per hour without needing to raise prices. Of course, the notion that the family or the stockholders might take less of the pie is too unlikely to even consider.

But wait—there are even more shameful numbers. Apparently, each store costs the taxpayers more than $900,000 per year in public assistance for its employees. Out of all employers, Walmart is the one where the largest number of workers and their families use taxpayer-funded health insurance programs.  And what about that shady, dicey, sketchy merry-go-round where almost 20 percent of the food stamps in America are redeemed at Walmart AND, coincidentally, a huge percentage of the employees need food stamps to survive. In the comment section of a Walmart-busting website, a worker wrote:

When I started, they actually have a routine to sign you up for Food Stamps and all government assistance during the orientation process. Which is really messed up to take a job to get you away from Government assistance, only part of their plan is to help you get it… I was disgusted at the fact it was part of their written orientation.

Please read the House the Homeless document, “The Fight for $15!” and learn about the Universal Living Wage formula. Universal Living Wage also has a Facebook page. As Jens Rushing said:

Look, if any job is going to take up someone’s life, it deserves a living wage.


Source: “Paramedic Shares Awesome Facebook Post About Minimum Wage Increase,” good.is, 08/03/15
Source: “14 Facts About Wal-Mart That Will Blow Your Mind,” BusinessInsider.com, 06/06/14
Source: “19 Facts That Show Just How Massive Walmart Really Is.” buzzfeed.com, 06/06/14
Source: “Top Reasons the Walton Family and Walmart are NOT “Job Creators”,” walmart1percent.org, March 2014
Image by Mike Licht



The Fight for $15!


Fight for $15! This is the battle cry for higher wages. Seemingly awesome. It is now taking hold on both sides of the nation. At this point, Los Angeles, San Francisco, Berkley, Oakland, Seattle, and now New York, have wage agreements that when eased in over time (3-6 years) will result in higher minimum wages!

For a decade, between 1997 and 2007, Congress failed to raise the Federal Minimum Wage at all. This set workers’ wages (coupled with normal inflation) on a trajectory that was so negative and so severe it resulted in putting the basics of life, including housing, beyond the reach of millions. In fact, the ever shrinking minimum wage relative to the cost of daily necessities has become so extreme that even such things as basic rental housing have moved beyond the reach of full time, 40 hour a week, minimum wage workers. Inaction on the part of Congress has only added to the 3.5 million people now experiencing homelessness in this nation. When the federal government failed to act, the people in desperation, jumped into the fray pushing for higher wages in their areas.

This is the very core of our American Dream…a fair wage for a fair day’s work! If you work hard, keep your head down, eventually you can get ahead, get married, and raise a family.

New York Governor Andrew Cuomo has indicated his support for recent economic changes. In fact, at a recent rally celebrating the NY wage proposal, he was noted as saying, “This is just the beginning. We will not stop until we reach true economic justice.” Awesome! Finally, we will acknowledge that the minimum wage worker, the janitor, construction laborer, hotel worker, bank teller, fast food worker, theater attendant, farm worker, receptionist, nurse’s aide, maid, poultry processor, child care worker, home care aid, garage attendant, etc. make up the socio-economic base of our society and that they all need living wages.

But wait a minute! Did we just mention farm workers? These are strictly rural workers. What about all the other minimum wage rural workers? While 80% of Americans live in urban areas according to the 2010 census, 20% of all workers are scattered throughout rural America. How will they and others in their situation, ever attain income-equity if they aren’t unionized and are too few in concentrated numbers to affect change? And by the way, ten states have passed laws that prevent local minimum wages to rise about the Federal Minimum Wage (currently set at $7.25 per hour or $2.13 per hour for agricultural workers).

And while we’re at it, when we examine the $15.00 for those who are organized and in states where it is OK to have a minimum wage above the federal minimum wage, we find that even $15 per hour falls significantly short of what is needed to become housed and to get by on a daily basis. Then we examine the common sense of the Universal Living Wage (ULW) formula, we see that it is based on three existing government guidelines:

  1. spend no more than 30% of your income on housing,
  2. work a full 40 hours per week,
  3. index the wage to the local cost of housing.

We calculate that the wage required to afford a one bedroom apartment using the HUD Fair Market Rents in a few notably cities with high costs of living-

City/State Hourly wage for an efficiency apartment Hourly wage for a one-bedroom apartment
New York, NY $23.00 $24.02
Los Angeles, CA $17.56 $21.21
Seattle, WA $18.69 $22.12
San Francisco, CA $24.15 $31.44

$15 per hour is a far cry from any of these basic requirements, and as we have seen in the past, when some of these $15 amounts go into effect as much as six years away, their value will be highly degraded due to inflation and we will be right back where we started. At the same time, currently in rural America we see that in areas such as found in a few sample cities in the table below-

City/State Hourly wage for an efficiency apartment Hourly wage for a one-bedroom apartment
Chico, CA $9.92 $12.63
Little Rock, AR $10.31 $11.90
Cumberland, MD $8.83 $10.42
Asheville, NC $9.81 $13.90
Decatur, IL $7.92 $10.12

This again is a significant distance from the $15 per hour bench mark in the opposite direction. We cannot destabilize small business throughout rural America as we work to stabilize our minimum wage workers.

What we need to do is act smart and address these two major concerns right up front. First, we have all learned by now that one size (or one wage amount) does not fit all. In fact, we have learned that we are a nation of 1,000 plus economies. Each population area throughout the nation has its own cost of living. We’ve all traveled; we know this to be true. We all know it costs much more to visit/live in Washington DC than it does to visit/live in Rapid City, South Dakota. The ULW formula takes this very real concern into account. We realize that by simply ascribing $15/ hour in an area that only requires $10 per hour would seriously hurt small business in that area. We must not saddle them with a one size fits all $15 per hour wage when it’s unnecessary and destructive to small business. Instead, we can use the HUD Fair Market Rent values to determine what a person should reasonably expect to pay for an apartment and other living necessities throughout the nation in areas about the size of counties. Then by simply making the wage relate to the cost of housing by indexing it to the local cost of housing, we ensure that no matter what that housing cost rises to, if we put in our 40 units of work per week, we’ll be able to afford basic housing and the core necessities of life without hurting small business. This is also a reason for people to be drawn away from welfare and back into work.

We need to keep the federal standard created in 1938 after the Great Depression that established The Federal Minimum Wage, in play for the entire nation. We need to be able to afford the basics in life: food, clothing and shelter (now transportation is added with the ULW formula) but we must tweak The Federal Minimum Wage so it is based locally. By using the same principle throughout the nation, but by indexing it locally, we find that over time, we are able to make the wage relate to even the most costly of housing markets in urban America without hurting small businesses in rural America.

This approach finally solves the problem of wage inequality at the minimum wage level while ensuring that a full time minimum wage worker is able to afford a roof over their head, (other than a bridge), and without adding to the existing homeless population. Finally, it gives businesses the opportunity to plan ahead by knowing exactly what the wage of employees will be now and in the future.


Photo: Steve Rhodes


Livable Incomes: Solutions to Stimulate the Economy


I have learned that, before people can think outside of their immediate needs, they must have those needs met. I refer to Maslov and the Hierarchy of Needs.

To that end, I have turned my attention to the core economics of the situation.

I have taken the existing Federal Minimum Wage (for those who can work) and tweaked it with a formula (based on existing government guidelines) that ensures that if a person puts in 40 units of work in a week , they will be able to afford basic food, clothing, housing, (utilities included) public transportation and access to the emergency room, wherever that work is done throughout the United States.

This will end homelessness for over 1,000,000,000 people instantly and prevent economic homelessness for all 20,000,000,000 minimum wage workers (immigrants included.)

You can find more details in my 2nd book, Looking up at the Bottom Line, and on the website www.UniversalLivingWage.org.

In my third book, Livable Incomes: Solutions that Stimulate the Economy, I deal with the Prevention of Homelessness. This includes fixing the Supplemental Security Income (SSI) for those who cannot work. From my perspective, looking at our capitalistic society the economy is paramount. This enables us to meet people’s basic needs.

People can either work or they can’t. At the lowest level, The Federal Government has set two standards: the Federal Minimum Wage for those who can work and SSI for those who cannot work.

Not surprisingly, the National Conference of US Mayors has said that a full time minimum wage worker cannot get into and keep (over time) a one bedroom apartment anywhere in the US. That wage is $7.25 per hour. The SSI stipend for people who cannot work is about half of that failed amount at $4.22 per hour.

Our approach to fixing this problem is different than that being promoted by the President (one size fits all) in that we recognize that we are a nation of a thousand plus economies. As a result, our formula indexes to the local cost of housing. In this fashion, if someone puts in 40 units of work (be it from one job or more) they will be able to afford the basics in life…food, clothing and shelter as outlined.

We have addressed the SSI standard in a similar fashion.

Since we devised our formula in 1997, the United States Military has converted its pay system to encompass our tenet of “Geographic Considerations” and changed from VAH, Variable Housing Allowance to BAH, Base Housing Allowance. Since then, the federal Government has similarly created “Locality Pay,” so that when people are transferred to a more expensive area, they are compensated.

Now it’s just, We The People, who are not supported this concept. As a result, 3.5 million people will again fall out of the work force and into homelessness again this year.

Image: 401(K) 2012


Executive Overcompensation Symptomatic of Deep Problems

executive overcompensation

U.S. CEO and Worker’s Pay Ratio 1965-2010.

For the Christian Science Monitor, staff writer Schuyler Velasco compiled a list of the American corporations where the yawning abyss between CEO pay and employee pay is most apparent. For every dollar the average McDonald’s employee makes, CEO Donald Thompson takes home 1,196 of them. How is it possible that any human being’s time is worth more than a thousand times as much as the time of another human being?

Existential questions aside, McDonald’s is the most egregious example of ridiculously munificent executive compensation, followed by Starbucks and Dollar General. Among the top 10, the least discrepancy is found at AT&T, where the biggest boss makes only 558 times the wage of an average worker.

Ratcheting up Salaries

For Dissent Magazine, Colin Gordon explains the process of deciding how much to pay a bigwig. A show of detached neutrality is made by deferring to the wisdom of a “compensation committee.” The members are other bigwigs with similar job descriptions. Next week, one of those execs will be up for a raise, and guess who will be on his compensation committee? That’s right — the very same guy whose salary he is deciding today. Gordon says:

These compensation committees […] have perfected a machine for ratcheting up executive pay. As a general rule, CEO pay is calculated from a benchmark of peers. The result is a lucrative game of leapfrog. The selection of peers is arbitrary — and often consists of cherry-picking larger and successful firms with higher-paid executives.

In effect — with very limited input from shareholders and no demonstrable connection to firm performance — top executives set their own salaries.

Shareholders Lack Clout

Supposedly, performance-based pay is subject to shareholder approval, and a reasonable person might ask, “Why don’t they take charge, and rein in these greed-heads?” But as it turns out, the deck is stacked. The system contrives to make shareholder influence largely theoretical. Their role is purely advisory and the corporation doesn’t have to do what they recommend.

For a giant business with high-powered lawyers on retainer, it is very easy to circumvent any rule. The corporate entity can hide, even from its own stockholders, exactly what is going on, in what Gordon calls “a concerted effort to camouflage the level and terms of executive pay packages with various forms of stealth compensation (such as lavish retirement deals) or rigged performance measures (such as stock options).” Even worse, there are two classes of shareholders. Gordon says:

Increasingly, shareholding is dominated by the block holdings of big institutional investors (mutual funds, pension funds, and the like). And many public firms use ‘dual class’ shares to distribute voting rights more narrowly than stock ownership.

Stockholding citizens, even the most socially conscientious, have very little clout. And what do the execs get paid for? Who knows, but it’s a pretty sure bet they are not busy figuring out how to reduce the income gap, and pay enough so that none of their employees need to apply for government relief.

Universal Living Wage

Eleanor Bloxham, CEO of The Value Alliance and Corporate Governance Alliance, believes that a company should be transparent about whether it pays a living wage to every person who works for it. For a recent Fortune CNN article, she quoted House the Homeless President Richard R. Troxell about the Universal Living Wage concept, so please go and take a look.

Also, please remember Economic Gap Day is coming up on Tuesday, September 2. Everyone is urged to organize or join a demonstration in a highly visible public place. Check out this video of a past Economic Gap Day to catch the vibe:

The Universal Living Wage means basic food, clothing, shelter (including utilities), public transportation, and access to an emergency room! This must be the minimum standard for every American and all people.


Source: “CEO Vs. Worker Pay: Walmart, McDonald’s, and Eight Other Firms With Biggest Gaps,” CSMonitor.com, 12/12/13.
Source: “Fatter Cats: Executive Pay and American Inequality,” DissentMagazine.org, 04/24/14.
Source: “Inequality in the U.S.: Are We Making Any Progress?Fortune.com, 08/04/14.
Image by Devendra Makkar.


The Universal Living Wage Goes to Washington


I recently attended the White House Summit on Working Families at the Shoreham Omni Hotel in Washington, D.C.

The Beatles, Frank Sinatra, and Bill Clinton had all stayed at the Shoreham. With 1,000 people in attendance, it still felt as if it was nowhere near capacity. The excitement and energy level was palpable. The din was almost numbing as we waited in line and slowly worked our way to the security checks. The president of the United States was coming! But the “participants,” as the name badge around our necks stated, were perhaps more excited that Gloria Steinem, Nancy Pelosi, and Michelle Obama were also scheduled speakers. The original title of the conference, White House Economic Summit on Working Families — which is what attracted me — had now been converted to the White House Summit on Working Families…after all, this summit was about families.

Gloria Steinem, celebrated feminist, spoke to the importance of women in the workplace when she shared the European Union’s plan to legislatively ensure that every Board of Directors be comprised of 40% women by 2020. She pointed to studies that show that the presence of women in business settings introduces compromise and increased business productivity.

U.S. House Democratic leader Nancy Pelosi (a hero of mine) continued to set the tone of the summit when she announced that “one in five children in America lives in poverty.”

Business leaders such as Sheila Marcelo, CEO of Care.com, informed us that in three states child care now costs more than state college tuition.

Speaker after speaker echoed themes that called for paid maternity leave, flexible work hours, wage equality, and comprehensive health and child care.

Congresswoman Pelosi declared, “The bottom line is, 21st century families deserve 21st century workplaces, and Congress should pass the Pregnant Workers Fairness Act and increase opportunities for American workers.”

Vice President Joe Biden shared the major sacrifices of his wife, Dr. Jill Biden, who helped him raise children after his first wife was tragically killed in a car accident shortly after Biden’s election to the U.S. Senate. He spoke adamantly about the role of “family” in all of our lives and the need to make major changes designed to support the structure and enhance all of our families.

President Obama also spoke of the many sacrifices of his mother as a single parent. He let it be known that she did whatever she had to do to provide for her family, including accepting food stamps. He went on to talk about the importance of minimum wage workers. He spoke of his proposed increase in the current $7.25/hour minimum wage to $10.10/hour. He said that 28 million people would benefit from his proposed increase to the Federal Minimum Wage.

I learned that, following the general group session, the Breakout Session on Hourly Workers would be held in the Ambassador Room. I located the room and placed my prepared documents about the Universal Living Wage on each of the yet-to-be-filled 450 seats where participants would get their marching orders on the proposed $10.10/hour minimum wage. I returned to hear the last of the morning speakers before people moved to the breakout sessions.

Not one to leave anything to chance, I again left the morning session and checked on the documents that I had left just minutes before on the chairs. They were gone! I had previously befriended a media person who had been setting up equipment. He directed me to the person, Bill Flanagan, who had removed my documents. I confronted him, got his identification and my documents back. He said that they “had not been authorized by the White House.” He worked for the Center for American Progress Action Fund. I took my documents and returned later for the breakout session when I planted myself in front of the audience microphone.

When I finally reached the microphone, I shared with the people that in 2006, Beth Schulman, author of The Betrayal of Work, stated that “people are no longer using minimum wage jobs as stepping stones, but rather they are remaining in those jobs for ten years or longer and being forced to try and raise families on that wage.” I told the audience that:

$10.10 = “Old Thinking!”

We are a nation of over a thousand economies. One size does not fit all! If the goal in raising the Federal Minimum Wage is that we cross the Federal Poverty Guideline and escape poverty, but the raised amount is always less than the amount needed to reach that goal line, then how will we ever escape poverty? We won’t. “Something is better than nothing” is not true if we are forever economic slaves and if that approach also attacks small businesses. Business benefits from labor. They should pay “a fair wage for a fair day’s work” but not suffer for it.

Instead, we must index work to the local cost of housing, so that a person can afford the basics in life, wherever that work is done throughout the U.S. (without ending up living on our streets).

I then told them that I was embracing common sense and that today I had come with a solution that will fix the plight of minimum-wage workers/families across America!

Universal Living Wage

I explained that the Universal Living Wage uses existing government guidelines that ensure that if a person works 40 hours in a week (be it from one job or more), he or she would be able to afford basic food, clothing, shelter (including utilities), public transportation, and access to emergency rooms, wherever that work is done throughout the nation. This will end homelessness for over 1 million people, and prevent economic homelessness for all 20 million minimum-wage workers. It will stimulate the national housing economy, save billions in taxes, and stabilize small businesses across America.

Several speakers behind me then stepped to the microphone and asked, “Why are we were not demanding a Living Wage approach?” The sound of their questions faded in my ears as I stepped out into the hallway and proceeded to hand out information about the Universal Living Wage to the rest of the “participants.”

“You have not converted a man because you have silenced him.”
— John Morley, 1st Viscount of Blackburn


Wage Adjustment


The Federal Minimum Wage has slipped into distinct disrepair. The historical one-size-fits-all approach, be it $7.25 per hour, or even the proposed $10.10 per hour, is antiquated. Our national economy has evolved into a thousand-plus economies. We’ve all traveled, and we all know that the cost of living in Washington, D.C., is different than it is Austin or in Harlingen, Texas, etc.

At long last, there is talk of indexing the Federal Minimum Wage (FMW) to the cost of living. This would make complete sense if the wage had enabled minimum-wage workers to afford life’s necessities to begin with. But, until that piece of the puzzle is fixed, the proposed cost-of-living increase only addresses the inflation aspect of the wage. The core wage itself is still too little to enable people to afford the basics of life: food, clothing, and shelter.

To solve the failings of the FMW, we must index it to the local cost of housing, as it is the single most expensive item in the budget of every American. The failure of the FMW is that it is creating homeless people. But by indexing to the local cost of housing, we account for the nationwide variation in local economies without crushing small businesses in rural America. This will ensure that if a person works 40 hours in a week, be it from one job or more, they will be able to afford basic food, clothing, and shelter (including utilities) wherever that work is done throughout the U.S. This will end economic homelessness for over 1,000,000 minimum-wage workers.

— by Richard R. Troxell, from a recent letter to the editor at The Austin American-Statesman

Image by Social Alterations


Austin and the Homeless in 2013

AustinHouse the Homeless is a powerful presence in Austin, Texas. The nonprofit organization and its president, Richard R. Troxell, are constantly at the forefront of the effort to help everyone have a good and productive life. Richard holds the invincible belief that America could end homelessness within its borders, and the only thing standing in the way is the lack of political will to do so.

As always, at the top of the list is the need for a living wage indexed to the local cost of housing, one that covers (at very least) the necessities of shelter, food and clothing. He is convinced of the necessity to change two federal standards, the minimum wage and Supplemental Security Income — which means businesses taking care of the people who work, and SSI taking care of people who can’t work.

On the local level, plenty of progress could be made right now by adopting the policy of “Discharge No One into Homelessness,” which would apply to every institution — the military, hospitals, the foster care system, the prison system and so on — and ensure that no one leaving any of those places would be ejected into the streets.

House the Homeless released the report entitled “Prevent Homelessness at Its Core: 10-Year Plan to End Homelessness, Restore Human Dignity and Save Business and Taxpayers $ Millions!” This White Paper was sent to the President and First Lady, all the members of the U.S. Senate and House of Representatives, and many governors, Cabinet members and other influential people.

Additionally, when funding is acquired, the plan is to send it to every mayor in the country. They are the ones responsible for building shelters in their towns, and making laws that apply to people experiencing homelessness. They are the ones who have to deal with their local hospital emergency rooms being filled with homeless people who have no health care alternative. Hopefully, individual mayors will petition the Conference of Mayors to do something, and the Conference of Mayors will petition Congress for relief in the cities. If only 14 mayors (just 1% of their number) would speak up, that would make a significant difference.

Speaking up

Richard has been a staunch voice every time a journalist needs perspective on such things as an apparent hate crime or a renewed effort by the city to make the lives of homeless  people more miserable. Recently, he wrote:

Our nation is relying on an all-volunteer military to protect the people of this nation and maintain the stability of the entire planet. We have failed to protect the protectors. In so doing, we have disgraced our nation and failed our Veterans who have selflessly sacrificed everything to ensure our freedom. House the Homeless calls for a full scale Congressional investigation into all allegations of mismanagement, abuse and neglect. The entire VA Disability program needs to be investigated by the United States Attorney General and placed in Special Receivership.

Strong words! Why would he say that? Among other things, remember the gigantic backlog in processing all veterans’ disability claims? If not, please review “Homelessness and the Disabled American Veterans Agenda.” Recently, we looked at the situation in Austin, thanks in part to the journalistic enterprise of Jeremy Schwartz of the Austin American-Statesman, which resulted in Bell County hiring a veterans services officer decades after the law required it. Why did it take a national scandal to implement this?


Image by Señor Codo



Higher Minimum Wage Won’t Cure Homelessness. This Will.

Living Wage

What Higher Minimum Wage Does for Workers and the Economy

Honest economists such as Federal Reserve Chairman Ben Bernanke have haltingly told the truth on the question of whether raising the minimum wage adversely affects the employment rate: “My response is that I think it doesn’t lower employment.”

Additionally, study after study has shown that 98% or more of all minimum wage  increases have been directly spent back into the local economy, thus acting as a local economic stimulant.

Unfortunately, the “Fair” Minimum Wage Act falls short, would hurt small businesses in rural America, and maintains a repressive wage system that would keep workers in a state of poverty throughout our nation.

First of all, how long would it take a worker to climb out of poverty if every step he or she took was less than the distance to reach that poverty goal line? The answer is FOREVER. They would never get there.  That has been the Congressional response to minimum wage worker needs for decades. The mantra has been, “Well something is better than nothing.” Clearly, that is not true if our path to escape poverty is forever blocked.

The failure of the Federal Minimum Wage (FMW) has manifested itself as 3.5 million workers falling out of work and into homelessness every year  for the last 20 years.  The single most costly item in the budget of every American is housing. That is why the Universal Living Wage campaign, since 1997, has chosen to index the FMW to the local cost of housing across America.

Unfortunately, the “Fair” Minimum Wage Act fails to to recognize that we are a nation of 1000+ separate economies. Everyone else knows the cost to live in Washington, D.C., is different from living in Harlingen, Texas, or Fort Lauderdale, Florida, or Santa Cruz, California. ONE SIZE DOES NOT FIT ALL! Let’s imagine the “Fair” Minimum Wage Act becomes law and the national standard becomes $10.10 per hour.  This will not get one homeless minimum-wage worker off the streets of Washington, D.C.!  At the same time, this will hurt small businesses in rural Fargo, North Dakota, and Cumberland, Maryland, and Erie, Pennsylvania.

By using the formula of the Universal Living Wage — using existing government guidelines to index the FMW to the local cost of housing — we ensure that a person working 40 hours in a week (be it from one job or more) will be able to afford basic food, clothing, shelter (including utilities), public transportation and access to a hospital emergency room.

Richard R. Troxell

Consult Looking Up at the Bottom Line…The Struggle for the Living Wage for supportive documentation.

Image by Lynn Friedman


How to Become Homeless… or Not

Prevent HomelessnessThis week is full of significant happenings. The whitepaper, “Prevent Homelessness at its Core — The Universal Living Wage (for dramatic business savings)” is available online, and printed copies are being sent out to the President, Vice President, state Governors, and members of Congress. The author is Richard R. Troxell, president of House the Homeless, which is headquartered in Austin, Texas.

One of the basic ideas this document embraces is that homelessness is way beyond just needing to be “dealt with,” it must be prevented. The great American philosopher Henry David Thoreau said, “There are a thousand hacking at the branches of evil to one who is striking at the root.” Hold that thought, because we will return to it.

Sue Watlov-Phillips, who authored the “Overview” section of the whitepaper, speaks of the media-nourished stereotype in which the lack of a place to live is a problem exclusively owned by the individuals who experience homelessness. This is reminiscent of the bad old days when the racial situation in the United States was characterized as “the Negro problem.”

Eventually, thanks to the actions of countless thousands of courageous people, the so-called Negro problem was correctly identified as a societal problem. Watlov-Phillips writes:

As long as we continue to blame people experiencing homelessness on their individual problems […] it allows us as a society to not address fundamental structural issues in our society that is creating and maintaining homelessness for millions of our people in this country and allows the general society to identify people experiencing homelessness as ‘those people’ instead of our people.

What are the roots of homelessness?

In other words, what are the roots of homelessness? They are embedded, Richard R. Troxell tells us, in two major trenches. One major crisis is that almost no one makes what could fairly be called a livable income any more. If that is not sufficiently obvious in our own lives, we can look to the media for such spectacles as the recent public relations disaster perpetrated by McDonald’s. The corporation’s suggested employee budget not only contained ridiculous expenditure figures, but took for granted that it’s normal for an American to hold down two jobs, just to live one life.

When a person is able to work, is paying them a living wage such a wild idea? When a person is not able to work because of disability, is improving the Supplemental Security Income (SSI) system such a crazy notion? Richard shows how these two things can happen, and illustrates the benefits to both business and taxpayers.

The other relentless contributor to homeless statistics is the ease with which people slip through the safety net, so thin and frayed as to be nonexistent in places. The whitepaper identifies several ways this rupture of the social fabric could be repaired so people stop falling into the abyss. Richard says:

The paper also looks at the concept/tenet: Discharge No One into Homelessness. This is the idea that at no time do we know as much about an individual as when they enter one of our Institutions… Therefore, we should begin to prepare for their eventual discharge into a safe housing environment, immediately.

In the recent past, House the Homeless has examined these institutions in depth, one by one. In a civilized country, the very notion of anyone being discharged from a hospital back onto the streets could make a grown man cry. Young people who already suffer from multiple disadvantages are released from the foster care system into oblivion. Far too many veterans, quite likely to be physically or mentally disabled, are denied the care that was promised them and that is owed them, and abandoned to their fates.

But that’s not all

Of course, there are many other routes to homelessness. An unbelievable number of Americans have lost their homes to the banks. It is worth noting that Sue Watlov-Phillips co-authored Foreclosure to Homelessness: The Forgotten Victims of the Subprime Crisis. In 1983, she founded Elim, the Minneapolis institution that focused on locating transitional housing in duplexes and apartments, rather than shelters. She is also a practicing psychologist, political activist and Board Member Emeritus of the National Coalition for the Homeless.

The other major participant in the creation of the whitepaper is Professor Edgar Cahn, who wrote the Preface. A very condensed version of his distinguished biography includes these phrases:

A graduate of the Yale law school […] started his career in government as special counsel and speechwriter for Attorney General Robert Kennedy… [F]ounded the Citizens Advocate Center… [F]ounded the Antioch School of Law… National Legal Services program… Time Dollar Youth Court…

Of the various genres of people experiencing homelessness, former prisoners are most difficult for the average housed American without a criminal record to sympathize with. But it doesn’t matter how anyone feels about it. The cold, hard fact is that America’s prison population has been artificially and outrageously inflated for the sake of corporate profit, and the more people are caught up in it, the worse everything is going to be for everybody.

Read all of  “Prevent Homelessness at its Core — The Universal Living Wage (for dramatic business savings)” or even just the Executive Summary… Tell everyone you meet that we must attack homelessness at its roots by preventing it! You can find the document in its entirety by clicking here or below.


Source: “Edgar S.Cahn, Ph.D., Father of Time Banking…,” EthicalMarkets.com


McDonald’s and the Living Wage

McDonald's Imgur

Tony Polombo is a columnist who, like Richard R. Troxell of House the Homeless, believes that a living wage is not the same as a minimum wage. They won’t be the same until the minimum wage is such that anybody who puts in a 40-hour workweek can afford food; clothing; safe, decent, basic housing (including utilities); public transportation; and access to the emergency room. A living wage, as its name implies, is one that a family can actually live on, not merely subsist or exist.

Some say that raising the national minimum wage would cause companies to lay off workers, and then unemployment would only increase. To them, Polombo makes this interesting point which is imbued with a dark and terrible humor:

As the many workers who are now doing the work that two or more other workers used to do can tell you — employers in general are already hiring the least number of employees they can get away with.

He brings up arguments of a kind that, due to a shortage of common sense, are not often heard. Check this out:

The US already has de facto living wage laws in the form of government safety net programs such as Food Stamps, the Earned Income Tax Credit and Medicaid… But critics have (rightly, in my view) charged that government programs such as these are little more than corporate welfare…

You would think that the anti-government Tea Party types in Congress would want to eliminate much of the need for these government programs by making corporations pay their full share of a living wage…

Citizens who work for slightly more generous corporations all chip in via their income taxes. Then the government has money to help other workers who labor for the cheapskate corporations, so their employees can afford the necessities that ought to be covered by their paychecks but are not. Voila! Corporate welfare!

You can call it anything you want, but that doesn’t change the fact. Speaking of cheapskate companies, Polombo says:

The award for corporate chutzpah goes to McDonald’s who in a campaign aimed towards its workers, tries to convince them that it is possible to work a minimum wage McJob and still live comfortably — if only they would budget their money properly! They support this by a sample budget that apparently assumes a worker has a second job along with Food Stamps to pay for food and almost no expense for health insurance. Unbelievable!

Polombo is not the only journalist having a good time bashing McDonald’s and wondering, incidentally, what planet those people are from. For ThinkProgress.org, Annie-Rose Strasser gave the sample budget the once-over and called it “laughably inaccurate”:

Not only does the budget leave a spot open for ‘second job,’ it also gives wholly unreasonable estimates for employees’ costs: $20 a month for health care, $0 for heating, and $600 a month for rent. It does not include any budgeted money for food or clothing.

Actually, this would explain why no money is allotted for heating. A person with two jobs is never home to need the heat turned on, and can sleep wrapped in a Mylar space blanket which is available for quite a reasonable price at the surplus store, where they are sold for the convenience of mountain climbers who might get caught in blizzards. Strasser goes on to say:

For an uninsured person to independently buy health care, he or she must shell out on average $215 a month — just for an individual plan… If that person wants to eat, ‘moderate’ spending will run them $32 a week for themselves, and $867 a month to feed a family of four. And if a fast food worker is living in a city? Well, New York City rents just reached an average of $3,000 a month.

And here is a question. Considering that this phantom budget was concocted by McDonald’s with the help of Visa — what about credit card bills? Many Americans pay huge amounts of interest every month to credit card companies, and not always for luxuries and frivolities. And people, yes, even fast-food employees, have student loans to pay back. And where is the item for child care, for which anyone with one or more children and two jobs will at some point have to pay? Even a doting grandma needs a $20 tucked into her apron pocket every now and then.

But there is no point in nitpicking, when the basic assumption of the budget — that everybody should work two jobs — is so blatantly unacceptable. The only upside is that employees can, as comic Stephen Colbert suggests, go to both employers’ Christmas parties and surreptitiously fill their pockets with buffet food. That may get them through the holiday week, but what about the rest of the year? And how many McDonald’s executives work a second job? What planet are these people from, anyway?


Source: “A Living Wage for Americans,” The World According to Tony Polombo, 08/01/13
Source: “McDonalds Tells Workers To Budget By Getting A Second Job And Turning Off Their Heat,” ThinkProgress.org, 07/15/13
Image by Imgur.com.

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