Barr-Kemper debate highlights myth about minimum wage, which should be raised

The most interesting exchange in the first debate between U.S. Rep. Andy Barr and the Rev. Nancy Jo Kemper, his Democratic challenger, last week involved raising the minimum wage.

In response to a question from moderator Bill Goodman, Barr said the minimum wage was not intended to be a living wage but a “stepping stone” to a better job.

“Most of the people on the minimum wage are teenagers; it’s an internship where they are acquiring skills,” Barr said before Kemper angrily interrupted him.

“No, no, no Congressman,” she said. “Most of the people on minimum wage are working single moms, and I’ve been there.”

Barr’s perception of the minimum wage might have been true many years ago, but workforce demographics have changed a lot in the past three decades.

Among American workers at or below the minimum hourly wage of $7.25 last year, 81 percent were 20 or older, and 55 percent were 25 or older, according to the U.S. Bureau of Labor Statistics.

These often are not “stepping stone” jobs, but a long-term reality for many family breadwinners. The largest groups of minimum-wage workers are women in those in service industries. About 20.6 million Americans — about 30 percent of all hourly, non-self-employed workers 18 and older — earn at or near the minimum wage, according to the Pew Research Center in 2014.

Infrequent increases have caused the federal minimum wage to lose ground to inflation. Since the last increase in 2009, it has lost more than 8 percent of its value. The 1968 minimum wage of $1.60 an hour would be equivalent to $11.16 today.

Last year, former Gov. Steve Beshear raised the state executive branch’s minimum wage to $10.10 an hour, affecting 800 people, many of whom worked at state parks, veterans’ nursing homes and mental health centers.

The issue took on new urgency last week, when the Kentucky Supreme Court, by a 6-1 vote, struck down efforts by Lexington and Louisville to raise their local minimum wage. Lexington’s Urban County Council voted last year for a three-year increase to $10.10, beginning with a bump to $8.20 that took effect July 1. That is now dead.

Lexington’s minimum-wage increase would have raised the pay for 31,000 workers, while Louisville’s would have affected 45,000, according to the Kentucky Center for Economic Policy, a liberal think tank. What’s more, the center says, a statewide $10.10 minimum wage would raise the pay for 300,000 Kentucky workers.

Twice in the past three years, the Democrat-controlled Kentucky House of Representatives has voted to increase the state’s minimum wage, only to have the legislation killed in the Republican-controlled Senate.

There is little chance the General Assembly will raise the minimum wage this year, either at the state level or by allowing cities to do it themselves. And if Republicans gain control of the House, expect a push for anti-union legislation and a repeal of “prevailing wage” laws that would further depress working people’s pay.

The best solution would be for Congress to raise the federal minimum wage, which would affect Kentucky and 19 other states that don’t already have higher minimum wages. Public opinion polls have shown for years that nearly three-fourths of Americans favor an increase. But Republican lawmakers argue that businesses can’t afford to pay workers more and would cut jobs instead.

Economists’ studies have found little evidence that past minimum wage increases caused significant job loss. Meanwhile, corporate profits and executive compensation are at record heights.

Rather than just focusing on job creation, it makes sense to look at what those new jobs pay. Can full-time workers at the bottom of the scale support themselves without costly public assistance? The Center for American Progress estimates that raising the minimum wage to $10.10 an hour would save Kentucky $34 million a year in Medicaid expenses.

Full-time workers should be able to earn enough to support their families. A higher minimum wage would put more money in the pockets of people who would spend it, creating more economic growth and more jobs. The sooner lawmakers in Washington and Frankfort understand that, the better off we will be.

This story was originally published October 30, 2016 at 10:43 AM with the headline "Barr-Kemper debate highlights myth about minimum wage, which should be raised."