I noticed in the paper recently that our governor, lieutenant governor, and three of our four congressmen will vote no on the ballot proposal to raise the minimum wage. That brought back memories of how I was disinvited to not be a part of a ski vacation. It was a number of years back, but the subject matter of the discussion around the dinner table that night is still pertain to today’s minimum wage discussion. The group of men on that ski trip were primarily executives representing a number of companies who were headquartered in the United States, but had factories in other countries.
One evening after dinner, the table discussion centered around why companies had manufacturing facilities right across the border in Mexico. As the conversation continued, it was obvious the primary reason was because labor costs were much lower. Then a newspaper story about overseas manufacturing crossed my mind. The article focused on labor cost. However, what caught my attention was the conditions of the workers. In some countries, the pay was so low that workers were literally living in refrigerator crates or something so sub-standard in housing that we would all be appalled to even think about living in. It was obvious these workers were not receiving a living wage. Then the discussion moved to what is a living wage, and I took the position that a company should feel an obligation to pay its workers enough to assure them simple necessities such has housing, food, and medical care. The companies should pay its workers enough to where the employees could purchase these necessities. That got some negative looks, and I knew I was treading on shaky ground, when one of the executives commented.
“No, Richard. It is not our responsibility to pay any more than the going wage.”
“Really?”
“Of course not, Richard. We’re not the Salvation Army.”
Well, that brought a chuckle from around the table from everyone but me, and then, when I replied, I knew my comments made sure I wouldn’t be with the group when they returned next year.
“I read recently where some workers who were employed by American companies overseas were being paid so little that they were living in refrigerator crates. If you had workers living in those conditions wouldn’t you feel an obligation to pay them enough where they could have decent housing?”
Yes, that got an icy stare from more than one of the executives, and after another man reiterated the pay was based on local standards, I replied, and I knew that my comment confirmed an invite for a return trip with this group wouldn’t be forthcoming.
“How would you like to sleep in a refrigerator crate after working 12 hours a day being paid twenty-five cents an hour?”
Of course, after that zinger the host of the meeting could see things about to become a shouting match, and he said: “Let’s go into the den for an after dinner drink.” Which everyone nodded, and I left the table knowing I wouldn’t be invited back next year.
Yes, I know workers in the USA aren’t living in refrigerator crates, but are the people we depend on for our great standard of living being paid a living wage? Of course, it’s not just the unskilled labors, but its professionals such as school teachers, who many times are forced into second jobs just to make ends meet. Considering the current Arkansas minimum wage, it’s obvious we are behind the times and numerous other states are considerable ahead of us, and leading the way, Amazon has just raised its minimum wage to $15/hour. The ballot proposal won’t solve all of the problems we have with low wages, inadequate health care, high taxes, and other problems, but it will help.
We know companies will complain that higher wages will drive them out of business, but that was the complaint back in the early 1900s when unions were formed and child labor laws were passed. The resulting higher wages from that time forward have made the United States the unequaled economic powerhouse in the world. Along with higher wages came a working class of people who bought more goods, sent their kids to college, and the increased productivity made our manufacturing companies more money.
Of course, of all times to increase the minimum wage this is the best of times, because the country is stronger than ever after rebounding from the Great Recession, and the recent huge corporate tax cut has given corporations in this country record earnings. Just take a look at some of the quarterly earnings reports that are flooding in, and you will be shocked at the astronomical amount of money corporations are making.
Now, let me comment about the opposition to the proposal. But before I do, I’ll give you my prospective on the political situation in our country. I believe one of the strongest parts of our democracy are the two major political parties that vie for congressional seats and the presidency. If one party ever dominates the system to the point where the other party is irrelevant, we will have seriously weakened our democratic foundations. I believe our country is a series of checks and balances and that goes for our political system. What I’m saying is that the Obama administration and the Trump administration are good for our country in a way that is so much a part of our underlying democratic strength that it can’t be overemphasized.
So after saying that, you might understand why, after Trump was elected I didn’t wail and panic, because it was just the pendulum swinging back and forth and the American people, the swingers of the pendulum, wanted to move it back closer to the center. Well, that has happened. In fact the pendulum passed the center several months back. But back to the discussion on the Minimum Wage. It shouldn’t have surprised you that our Republican Governor, Republican Lieutenant Governor, and three Republican Congressmen opposed raising the minimum wage. That’s what Republicans do, and since where talking about what Republicans do, let’s take it a little further.
We’re already said Republican are for lower wages for workers, but they don’t stop there. They are against health care for those workers, retirement funding, and a host of other benefits for the average workers. But they are for a lot of stuff too. Lower taxes…for corporations. Fewer environmental regulations for corporations, and they used to be for free trade, but not anymore. Ask an east Arkansas soybean farmer how much less he or she is receiving after our president did away with free trade.
Whether you are a Republican, Independent, or a Democrat, I urge you to vote for an increase in the Arkansas Minimum wage proposal. History proves an ever increasing minimum wage, especially when the country is in an economic upswing is not only more money in the pocket-books of hourly workers, it actually boosts corporate profits by increasing the demand for goods. Arkansas has spent too many years on the lower rung of wages. It’s time to give our hourly workers a raise.
Richard Mason is a registered professional geologist, downtown developer, former chairman of the Department of Environmental Quality Board of Commissioners, past president of the Arkansas Wildlife Federation, and syndicated columnist. Email richard@ gibraltarenergy.com.