The Minimum Wage and the Big Ideas

The Economic Policy Institute (EPI) points out the unsurprising fact that the minimum wage is worth much less than it previously was worth. Its graph illustrated the value of the minimum wage since 1960, adjusted for inflation and translated into 2009 dollars:
When adjusted for inflation, the minimum wage was worth $8.54 per hour in 1968, compared to the current minimum wage of $7.25 per hour. Based on a typical, 2,000-hour work year, the 1968 inflation-adjusted minimum wage would equate to an annual salary of $17,080 per year, versus $14,500 for today’s minimum wage.
In other words, the minimum wage decreasingly resembles a living wage. Historically, the peak of minimum wage value was in the 1960s, a long-gone era many people who are working today don’t even remember, because a lot of them weren’t born yet. The EPI also points out that raising the minimum wage stimulates the economy by giving workers more spending power. You’d think this would be obvious, but apparently many politicians overlook this basic fact.
We previously mentioned the very comprehensive interview that Richard R. Troxell of House the Homeless did not long ago. It’s worth mentioning again, because when Wayne Hurlbert of Blog Talk Radio conducts an interview, he skillfully leads his subject to lay out the most important principles, as well as explain things in detail.
Painting first with a broad brush, let’s review some of the big ideas. Changing people from tax-takers to taxpayers is one of them. If the working poor were making a fair, adequate living wage, it would reduce the tax burden, because there would be less need for food stamps and other sorts of government assistance. Even if it can’t happen right this minute, people need to know that there is hope, they need to see that pathway stretching out before them. They need to know opportunity exists, and to be inspired to take advantage of opportunity, rather than subside into hopelessness.
Another basic principle of Richard’s is, solutions that come from the grassroots are faster and more effective than those involving the government. Of course, for something big like the Universal Living Wage, the government has to be behind it. But if homeless veterans in your community need socks, an appeal to the local goodhearted people will get them a lot quicker than a request to an official bureaucracy. And we have to show the way, because the old saying is true — “When the people lead, the leaders will follow.”
The biggest idea of all is that homelessness does not have to exist. This situation we have today does not have to be the situation we have tomorrow. We’re in a mess, but it can be undone and fixed. Richard’s proposal for fixing it is implementing the Universal Living Wage. In the interview, Hurlbert asks how the ULW is different from the minimum wage already in effect, and the answer is, it’s not really that different. What we have now needs to be tweaked and perfected, and if it is done over a 10-year period, the shock for anyone need not be too unbearable.
As a background, Richard talks about when the federal minimum wage was instituted in 1938, to make sure every working American could afford basic shelter, food, and clothing. It was a humane, fair, and much needed measure, but it was based on an assumption that it costs pretty much the same to live anyplace in America, so it was not indexed to anything. Still, it worked acceptably until the mid-1980s, when extreme booms and busts in the economy had really messed things up.
Another thing happened too, that would impact the nation very adversely by increasing not only the number of people experiencing homelessness, but the number of such people who were truly incapable of taking care of themselves. By the ’80s, the whole structure of mental health institutions had become so abusive, it seemed better to integrate the mentally ill into society.
The first part of the plan worked fine, dumping thousands of seriously ill and disoriented people on the streets. The second phase didn’t work so well, and rather than getting “mainstreamed,” the people ended up drowning instead, denizens of the streets, free but so impaired that freedom became “just another word for nothing left to lose,” as Kris Kristofferson phrased it.
In the interview, Richard talks about how the minimum wage always falls behind the poverty line, and how it didn’t increase for a whole decade between 1997 and 2007. We ended up with a situation where one of the largest labor organizations, Service Employees International Union, was training people in how to apply for food stamps. At one point, the University of Texas had 200 staff members on food stamps. And because of the unrealistic minimum wage, the federal government had become a creator of homelessness.
Reactions?
Source: “State of Working America preview: The declining value of minimum wage,” EPI.org, 11/17/10
Source: “Richard Troxell: Looking Up at the Bottom Line,” Blog Talk Radio, 12/08/10
Image by EPI, used under its Creative Commons license.
Economic Homelessness, Rent, and Deadened Memories

Economic homelessness is an important concept in the overall picture examined in Looking Up At the Bottom Line. The economic homeless are the working poor who have some kind of a job, but nothing close to a living wage that would provide, for instance, rent. They inhabit cars, shelters, squats, friends’ couches, and other temporary and very marginal quarters. Or no quarters at all.
An interesting thing happened when New York State was electing itself a new governor last fall. Jimmy McMillan, representing a political party called The Rent Is Too Damn High, participated in the televised debate, and his remarks are worth listening to. This video clip gives the gist, in under two minutes. The candidate did not succeed in the gubernatorial election, but that’s okay, because it frees him up to concentrate on his 2012 presidential campaign.
Suzanne Rozdeba conducted an interview with McMillan for the East Village local edition of The New York Times. At one point, the candidate underwent a spell of homelessness himself. The entire interview is highly recommended, and Rozdeba must be profusely thanked for capturing a number of excellent quotations from Jimmy McMillan. Here are just a few:
*Market value is a bunch of crap. It’s a plan to run out the poor.
*You’ve got to stop paying people in the government a football player salary.
*I would have no problem getting any bill passed before the House and the Senate.
*I guarantee you, if I’m sworn in in January, jobs will pop up in February.
*Whatever party I run under, I want them to know I’m not satisfied with anything coming from any elected official.
*We have bird-brained economic leaders. People need money to spend. And it boils down to one thing: the rent is too damn high.
Is McMillan just a freakshow? Maybe not. He was written up in the Wall Street Journal. For a very different establishment, the Center for a Stateless Society, Kevin Carson considered the ideas held by the very entertaining politician, and compared them with the ideas of Franz Oppenheimer. Here, roughly, is the argument, and it has a lot to do with homelessness. Economic exploitation, of course, goes way back. Carson says,
In sparsely populated areas of the New World, the state preempted ownership of vacant land, barred access to ordinary homesteaders, and then granted title to favored land barons and speculators. The result is that we see enormous tracts of vacant and unimproved land held out of use by state-privileged landlords, so that land is made artificially scarce and expensive for those who desire an opportunity to support themselves.
This artificial scarcity exists because the state wrongfully enforces artificial property rights. Of course, the first thing you want to ask is, what’s the difference between an artificial property right and a genuine property right? Capitalism creates artificial private property rights by coercion, backing up the right of a privileged few who control access to natural opportunities. Genuine, legitimate private property, by contrast, is about the right to possess the fruits of one’s own labor, for instance by growing a crop on land that nobody is using. Carson says,
[… T]he privileged classes of landlords, usurers and other extortionists seek to close off opportunities for self-employment because such opportunities make it too hard to get people to work for them on profitable terms. [… T]he artificial dearth of natural opportunities to produce creates a buyer’s market for labor in which workers compete for jobs instead of jobs competing for workers.
When everything is owned by the government plus a lucky few people at the top, the vast majority of the people can’t be self-sufficient, because they have no resources to work with. Which makes them sitting ducks, ripe for economic exploitation. For instance, they wind up paying a grotesque percentage of their income just on rent — or are totally unable to afford even the lowest available rent.
Which brings us back to Jimmy McMillan, a voice of sanity crying out in the wilderness. It puts him in the same realm as Richard R. Troxell of House the Homeless. We very much recommend the excellent radio interview (with host Wayne Hurlbert), during which Richard talks how the Universal Living Wage is good for business, and how it can get a million minimum-wage workers off the streets, while preventing economic homelessness for 10 million minimum-wage Americans.
In many cases, those with mental illness or substance abuse problems, or both, fall into the chronically homeless category. A lot of the “chronically homeless” are just plain unfit for the work force. But mental illness can be treated with conscientious medication, followup, and luck. Substance abuse can be treated with 12-step programs and other modalities. People experiencing either condition, or both, can find their way back to being productive members of the work force if there are jobs for them. They can escape the homeless condition, if there are places for them to live within the means provided by those jobs.
Those are two very big “ifs,” as Richard discovered in the late 1990s. He was working with people experiencing homelessness who had two major things going on — mental illness and substance abuse. With great struggle, he secured funding to put 20 people through a “continuum of care” program including detox, substance abuse counseling, housing, job training, and job placement. Despite the reported 100% trainee placement rate, they all ended up homeless within two years, unable to make rent with their minimum-wage paychecks.
“Substance abuse” is an interesting shorthand term. Richard expresses the same idea in different words, as “self-medicating with some memory deadening substance.” There is a valuable clue here, to the whole skid-row, lowest-common-denominator drug culture. There is a question that needs to be asked: What is it about life in contemporary America that makes so many people want to deaden their memories? When we confront that question, we will be ready to make some progress.
Reactions?
Source: “Looking Up at the Bottom Line,” Amazon.com
Source: “The Rent Is Too Damn High Party’s Jimmy McMillan at the NY Governor Debate,” YouTube.com
Source: “Interview | Jimmy McMillan,” The Local East Village NYT, 01/18/11
Source: “Yes — The Rent Really Is Too Damn High!,” c4ss.org,10/26/10
Screen capture of Jimmy McMillan is used under Fair Use: Reporting.
Martin Luther King Jr. and the Living Wage

HTH at the Martin Luther King, Jr. Parade in Austin, Texas
There are many who believe that The Reverend Dr. Martin Luther King was killed because he advocated for peace.
There are others who believe that it was not until he became involved in the sanitation workers’ strike in Memphis, Tennessee, that he was shot.
It was from the jail cell in Birmingham, Alabama, that he wrote, “There is nothing but short sightedness to prevent a living wage for every American family.”

A 2005 report by the
In Houston, Texas, a pair of documentarians roamed the streets to connect with people experiencing
In Britain, the recent marriage of Prince William and Kate Middleton was attended by a formerly homeless young woman who has one of the trademarks of celebrity: a single name, and it is Shozna.
Following the success of our guide on “
If you only have time to look at one post today, please go straight to Richard R. Troxell’s piece on the
Imagine a world where 80% of the people are without such basic needs as water, sanitation, education, healthcare, food security, or the old-age pensions — a planet where four out of five people lack what the United Nations (U.N.) calls “
Again this year, 3.5 million people will experience homelessness in America. In the land of milk and honey, this is unconscionable.






