The Minimum Wage

Floor Speech

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Mr. President, growing up, my mother was a single parent. She raised three children by herself. I know what it is like to run out of money at the end of the month, what it is like when every dime matters.

The minimum wage is a poverty wage. Today, the minimum wage hasn't kept up with inflation. If the minimum wage had kept up with inflation in 1968, the minimum wage today would be $10.68. If you do the math, minimum wage workers today earn less than $15,000 per year. If you are supporting a child or an elderly parent, that is a family income below the Federal poverty line. Raising the minimum wage from $7.25 to $10.10 would help lift nearly a million workers and their families out of poverty. In Hawaii, nearly 100,000 women would get a raise.

This is especially important for women. More and more women serve as heads of households. And nearly two-thirds of minimum wage workers are women. Nearly two-thirds of workers in tipped occupations are women.

The situation is even more dire in Hawaii, where the cost of living is higher. In Hawaii, one out of five Hawaii women workers would get a raise if we raised the minimum wage from $7.25 to $10.10. A person working full time making $7.25 per hour makes $14,500 per year. The average rent in Hawaii for a one-bedroom is $1,278. That is more than $15,000 per year. That is why many in Hawaii have to work more than one job.

And there are stories all across the country of women struggling. Hawaii Catholic Charities recently shared their story with me of a woman in Hawaii working for minimum wage who was unable to afford basic living expenses for herself and her son. She had to move back in with her parents. Over the course of a few years she was able to change jobs to a department store, where she eventually earned $10 per hour. At that wage she was able to contribute to her family's household expenses and start a savings account for her son. We all hear stories like this often. It's why we must raise the minimum wage--so that hard working families have a chance at building a better life for themselves and their children.

Some critics claim the minimum wage will cost jobs. The CBO report looked at old studies and not the latest research. Just last week, a Goldman Sachs report said the CBO estimate of 0.3 percent job loss is too high because raising the minimum wage would actually increase demand. Minimum-wage workers spend that money right away, at local businesses in their communities. A survey of small business owners found that three out of five supported raising the minimum wage. They said a higher minimum wage would increase consumer spending on their goods and services. The Goldman Sachs report said that States which raised their minimum wage in 2014 actually created more jobs than other states.

In Hawaii, a large part of our economy is hospitality and tourism. Many workers earn the tipped minimum wage, which is lower than the regular wage. I have met restaurant workers who can't afford to eat at the restaurant where they work. I heard one mother say she had to choose between buying diapers for her kids or eating lunch that day. Women should not have to make that choice. Back in 2007, the last time Congress raised the minimum wage, the restaurant industry said it would cost their industry jobs. But in 2013, the restaurant industry forecast said, "Restaurants remain among the leaders in job creation.'' The Bureau of Labor Statistics reports that between 2007 and 2013, restaurants added 724,000 jobs.

Raising the minimum wage also saves taxpayer money on social services. When companies pay a low minimum wage, workers in poverty can't afford to eat. Taxpayers are picking up the tab--we're subsidizing low-wage companies. If we raise the wage to $10.10, we reduce taxpayer costs for the Supplemental Nutrition Assistance Program, or food stamps, by $4.6 billion a year. In Hawaii, over 15,000 workers would no longer need SNAP beneifts.

In America, we believe that if you work hard and play by the rules, you can get ahead. Let's increase the minimum wage, to give all Americans a fair shot.

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