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from The Great Debate:

Why not a war on child poverty?

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President Barack Obama’s recent speeches at the LBJ Presidential Library and National Action Network marking the 50th anniversary of the War on Poverty and the Civil Rights Act had a serious omission. While acknowledging “our work is unfinished,” Obama failed to mention this nation’s worst social trend: the stunning increase of children and youth living in poverty.

Since 1969, the proportion of children and youth in poverty rose by 56 percent, even as the economic fortunes of the elderly improved under programs like Medicare and Social Security. Today, 32 million American children and youth are confronting poverty -- including 7 million suffering utter destitution, another 9 million living in serious poverty and 16 million more in low-income households struggling just above poverty lines.

Even as Obama has launched My Brother’s Keeper, an initiative to help poorer young men, his administration continues to largely ignore this larger issue. In fact, Obama said, addressing youth poverty “doesn’t take all that much.” No federal money has been budgeted for the initiative.

Instead, My Brother’s Keeper is initially to raise $7.5 million from 10 major foundations for “consultants,” and then perhaps attract $200 million in “private investments” over the next five years -- largely aimed at mentoring, church and related programs. One key component, for example, is an effort to make sure impoverished young people “make better decisions.”

from The Great Debate:

Executive orders: Part of the framers’ grand plan

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President Barack Obama has used his executive authority to stop deporting undocumented immigrants who had been brought to the United States as children. The administration has also announced that it will stop requesting mandatory minimum sentences for low-level, non-violent drug offenders.

Obama is now using executive orders and other unilateral exercises of executive power to advance his agenda rather than wait on Republicans in Congress.

from Breakingviews:

U.S. is minimum-wage laggard given its prosperity

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By Martin Hutchinson
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

America is a minimum-wage laggard – at least relative to its economic prosperity. With Washington considering a higher pay floor and Peru’s prime minister losing his job over the issue, a Breakingviews analysis shows that minimum wages as a percentage of local income levels are still low in the United States and, for instance, in neighboring Mexico.

from The Great Debate:

On minimum wage: Mind the Gap

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Just 24 hours after Senate Republican Leader Mitch McConnell (R-Ky.) warned that raising the minimum wage to $10.10 per hour from $7.25 would deal a “devastating blow to the very people that need help most,” Gap Inc. announced it would raise employees’ minimum pay to $10 per hour by next year.

In striking contrast to the alarms sounded by McConnell, Gap chief executive officer Glenn Murphy emphasized the benefits of this pay raise for the company’s lowest-paid workers. He described it as a “strategic investment to do more for our employees” -- one that  will help “attract and retain a skilled, enthusiastic and engaged workforce.”

from The Great Debate:

FDR set the terms for labor executive orders

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Many critics have called President Barack Obama’s executive order raising the minimum wage for federally contracted workers an unprecedented bold action. The president bypassed a gridlocked Congress to increase pay to $10.10 an hour -- and raise labor standards for the only federal workers directly within his authority.

This move is a significant step in combating income inequality. The federal government is the largest low-wage job creator -- with more than 2 million low-wage workers. That’s more than Wal-Mart and McDonald’s combined.

from The Great Debate:

The middle class’s missing $1.6 trillion

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The United States was the world’s first middle-class nation, which was a big factor in its rapid growth.  Mid-19th-century British travelers marveled at American workers’ “ductility of mind and the readiness…for a new thing” and admired how hard and willingly they labored. Abraham Lincoln attributed it the knowledge that “humblest man [had] an equal chance to get rich with everyone else.”

Most Americans still think of themselves as middle class.  But the marketing experts at the big consumer goods companies are giving their bosses the unsentimental advice that the middle class is an endangered species. Restaurants, appliance makers, grocery chains, hotels are learning that they either have to go completely up-scale, or focus on bargains for the struggling and budget-conscious.

from The Great Debate:

The minimum wage fight: From San Francisco to de Blasio’s New York

In his State of the Union address last month, President Barack Obama urged cities and states to bypass Congress and enact their own minimum wage increases. "You don't have to wait for Congress,” he stated.

On Monday, New York City Mayor Bill de Blasio followed the president's advice. De Blasio announced, in his State of the City address, that he plans to ask Albany next week to give the city the power to raise the minimum wage.

from The Edgy Optimist:

The real issues behind the minimum wage debate

In his speech at the Center for American Progress this week, President Obama devoted considerable time to an issue suddenly much in discussion: the minimum wage. This is not a new debate. In fact, it neatly echoes the last time Congress raised the minimum wage, in 2007, which echoed the debates before that. Few economic issues are such sweet catnip to ideological camps, and there is precisely zero consensus about whether these minimums have positive, negative or no effect.

Supporters say that a higher minimum wage will give people a better standard of living and boost consumption. Detractors argue that it will lead companies to hire fewer workers and kill job creation. One thing no one addresses, however, is that regardless of whether the government raises the minimum wage, our society can’t endlessly coast with a system that includes wage stagnation for the many and soaring prosperity for the few, nor can the government snap its legislative fingers and magically produce income. Someone will pay for these increases; nothing is free.

from The Great Debate:

It’s not just fast-food workers who are underpaid

Akil Poynter, 20, works 30 hours a week at a St. Louis area McDonald’s, earning $7.35 an hour for manning the grill. Since the Florissant Valley Community College student can't get by on that income, he took on a second job, preparing sandwiches and salads at a local Panera Bread. There he receives $7.95 an hour for another 25 hours of labor a week.

Asked the difference between his two employers, Poynter says there isn’t much of one. Panera’s nicer surroundings and higher-quality food don’t translate to better working conditions. "The environment is different but the work is the same," Poynter noted. "Workers are working their butt off every day to get their paycheck."

from Reihan Salam:

Finding new ways to make work pay

One of the scariest notions about America’s sluggish labor market recovery is that it doesn’t represent an aberration, but rather a new reality in which good jobs are few and far between, particularly for those with limited skills. It is certainly possible that the future will be brighter than we think, and that we will soon enter a new economic Golden Age in which people with low education levels will flourish as employers clamor for their services at ever-higher wages. But if this happy outcome does not come to pass, as the current evidence suggests, the United States and other market democracies will have to come up with a Plan B.

A number of interrelated developments, from automation to organizational innovation to off-shoring, appear to have reduced the willingness of employers to pay middle-income wages to less-skilled workers. That is, the problem is not that there is no wage at which employers will take on less-skilled workers. If this were the case, agriculture and hospitality companies wouldn’t be pressing lawmakers for an immigration overhaul that would allow for a large influx of less-skilled workers from abroad.

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