Open letter to
Oakland mayor Jean
Quan:
The only legislation that can realistically end gun violence in Oakland – and Chicago – is a labor law: doubling the minimum wage to $30,000/yr. The Crips and the Bloods could not whip a decent paying Ronald McDonald.
The only legislation that can realistically end gun violence in Oakland – and Chicago – is a labor law: doubling the minimum wage to $30,000/yr. The Crips and the Bloods could not whip a decent paying Ronald McDonald.
$3.87/hr (half/average raise) X 2080 hours (full work year) = $8,049/yr X 70 million workers (half the workforce -- $15/hr is today’s median wage) = $563.4 billion. (3.5 million workers at the minimum wage would get a full $16,020 raise may be left out to simplify eighth-grade math.) Divide $563.4 billion by a $15.8 trillion GDP and we get 3.6% direct inflation (not counting leap frog pushups which may not add up to that much – LBJ’s median wage was only 25% higher than his minimum – high minimum wages often approach median level in other economies).
Oakland won’t educate its way out of poverty and crime. Catch 22: political scientist Martin Sanchez-Jankowski, from neighboring UC Berkeley -- who spent nine years in five poor New York and Los Angeles neighborhoods (and ten years before that researching street gangs) -- explains in his 2008 book Cracks in the Pavement that ghetto schools don't work mostly because students (and teachers!) don't expect anything decent awaiting them in the labor market, and so think it hopeless to make the effort.
In 1956 majority leader LBJ steered an $8.50/hr ($1/hr nominally) minimum wage bill through the US Senate. In 1968 (hourly increments and retail workers added in years between) president LBJ piloted a minimum wage of $10.50/hr ($1.60/hr nominally) into law -- per capita income having expanded 25% in the dozen years intervening.
Per capita income has doubled in the two generations since 1968.
There would be a dismal gap even between a minimum wage of $15/hr, or $30,000/yr and a reality-based minimum needs (poverty) level for a family of three – and even between a median wage 25% higher of $18.75/hr, or $37,500/yr.
A
realistic poverty
line for a family
of three is $45,476
in 2012 dollars
according to the
2001 Ms.
Foundation book Raise
the Floor
(table 3-2 on
p.44 -- includes $8,786
medical insurance
cost). Raise
totals up from
a comprehensive
list of expenses,
including taxes to
get its figure. (Raise
provides extensive
explanations for
its minimum needs
parameters in
Appendix B, citing
Solutions for
Progress -- allots
$3,000 to yearly
medical expenses
even if the family
has insurance.)
"Since 1973 [note: the last year national income gains were shared across-the-board], productivity has grown roughly 80 percent while median hourly compensation improved by roughly 11 percent.” Something more elemental than “raising the floor” needs to be prescribe.
http://stateofworkingamerica.org/fact-sheets/wages/
Anyone
can work up a list
ruses by which the
average American’s
interests are
being hung out to
dry these days. I
was just going to
say the only thing
not foisted upon
us so far is
foreign firms
buying up local
water rights and
charging them back
to us triple.
Then I
remembered Chicago
leasing its
parking meter
system for 75
years for $1.15
billion:
http://www.bloomberg.com/news/2010-08-09/morgan-stanley-group-s-11-billion-from-chicago-meters-makes-taxpayers-cry.html
http://www.theatlanticwire.com/business/2010/10/why-does-abu-dhabi-own-all-of-chicago-s-parking-meters/18627/
******
Up the road from Oakland City Hall – up College Avenue – on the UC of Berkeley campus labors as progressive a progressive economics faculty as anyone should wish. They could you tell you, Madam Mayor, and tell everyone else at the same time [this essay may hopefully edge them in the latter direction] about a species of labor legislation that can potentially re-write the American social contract front to back, economic to political.
http://www.bloomberg.com/news/2010-08-09/morgan-stanley-group-s-11-billion-from-chicago-meters-makes-taxpayers-cry.html
http://www.theatlanticwire.com/business/2010/10/why-does-abu-dhabi-own-all-of-chicago-s-parking-meters/18627/
******
Up the road from Oakland City Hall – up College Avenue – on the UC of Berkeley campus labors as progressive a progressive economics faculty as anyone should wish. They could you tell you, Madam Mayor, and tell everyone else at the same time [this essay may hopefully edge them in the latter direction] about a species of labor legislation that can potentially re-write the American social contract front to back, economic to political.
Europe's fabled welfare state was offered as a compensation for labor price moderation. Magic bullet: legally mandated, sector-wide collective bargaining – wherein everyone working the same category of job (e.g., retail clerk) in the same geographic locale (where applicable) works under one common contract with all employers – thwarts the race-to-the-bottom just as surely – just the right barraging balance.
The late David Broder, dean of the Washington press corps, said that, when he came to D.C. 50 years ago, all the lobbyists were union – which meant: naturally balanced campaign financing, someone minding the store on the average person’s interests, all backed by the majority of voters -- perfect democracy.
Your friendly economics faculty up the avenue can tell you all about all of this – but you’ll have to ask.
Denis Drew
Chicago (sometimes Berkeley)
ddrew2u@sbcglobal.net
www.ontodayspage.blogspot.com
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