Sound Bite
This well-documented brief demonstrates that both poverty and excessive economic inequality are inimical to the maintenance of a healthy republic, and notes that providing a living wage is not only fair, but is superior to any other public policy such as cash transfers (or the Earned Income Tax Credit) in the effort to fight poverty.
About the Author
Jerold Waltman is R.W. Morrison Professor of Political Science at Baylor University. He is the author of two titles with Algora and four previous books including The Politics of the Minimum Wage (2000), and the editor of three others. His articles have also appeared in a number of professional journals along with magazines and newspapers.
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About the Book
Societies have always struggled to determine what is right in providing for those at the low end of the economic spectrum; now that America has seen an enormous gulf open between those with the most and those with the least, the question becomes a...
Societies have always struggled to determine what is right in providing for those at the low end of the economic spectrum; now that America has seen an enormous gulf open between those with the most and those with the least, the question becomes a campaign issue and a frame for how we define America's values.
What is the difference between a minimum wage and a living wage, a fair wage and a just wage? How are they the same and how do they differ?
Citing case studies and statistical analyses, the author explores the root causes of inequality and poverty, and compares efforts in the United States and the UK to address those problems. He considers what the principal religions have to say about poverty and inequality, and traces the evolution of the "just wage" tradition. In a review of American policy, he shows that the idea of a living wage was central to policy initiatives promoted by early advocates of the welfare state. In the wake of clear failures of the welfare system as it now stands, he urges we focus our attention again on the living wage, a promising instrument for economic justice and a means of contributing to general prosperity as well.Material conditions in America make it appealing to people the world over, and anything we do to make it a better place makes it more so. But that is fulfilling our history, from the Puritan wish to "build a city on a hill" forward. Should we reject expanding freedom of speech or building better schools because that might attract more immigrants? No. And we need to adopt a living wage for everyone who works in this country.
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More . . .
The Wage Debate by: David Silverman One of the first subjects the new Democratic Congress will likely address is the minimum wage. If the minimum wage goes up, what will happen to the U.S. economy? Ã??'Ã??'¦.Congress has not raised the minimum wage since 1997, and, according to the Economic Policy Institute (EPI), the value of todayÃ??'Ã??'s minimum wage is less than it has been since 1951,Ã??'Ã??'¦. At what level would the living wage need to be set, in order to truly make an...
The Wage Debate by: David Silverman One of the first subjects the new Democratic Congress will likely address is the minimum wage. If the minimum wage goes up, what will happen to the U.S. economy? Ã??'Ã??'¦.Congress has not raised the minimum wage since 1997, and, according to the Economic Policy Institute (EPI), the value of todayÃ??'Ã??'s minimum wage is less than it has been since 1951,Ã??'Ã??'¦. At what level would the living wage need to be set, in order to truly make an impact? Ã??'Ã??'¦. Living wage proponents suggest that a more appropriate level of minimum compensation is around $13 per hour. That is where the minimum wage would be today if Congress had indexed it to productivity and profits since 1968, when the level was at an all-time high of $8 per hour (adjusted for inflation). The level would be over $20 per hour had it kept pace with profits in the retail industry, which employs more than half of the nationÃ??'Ã??'s hourly employees paid at or below minimum wage. Whether we are talking about the minimum or a living wage, Congress is not without economic arguments that are used to justify its inaction. As Professor Jerold Waltman of Baylor University says in his excellent polemic, The Case for the Living Wage, there are five primary arguments against the minimum or a living wage: 1. It will lead to unemployment 2. It will cause inflation 3. Small businesses will be unable to absorb the costs and will fail in unacceptably large numbers 4. In a recession, there will be a shortage of minimum wage jobs 5. A higher minimum wage will draw illegal immigrants in even higher numbers than we are seeing today LetÃ??'Ã??'s take a look at each of these points and consider whether they are legitimate.Unemployment In fact, many recent studies, and one going back to 1909, have proven repeatedly that raising the minimum wage has no negative impact on employment.Ã??'Ã??'¦ InflationÃ??'Ã??'An Incongruous Argument? Ã??'Ã??'¦if every business in the country were forced to pay higher wages, wouldnÃ??'Ã??'t that result in systemic inflationary pressure? Ã??'Ã??'¦As for the issue of lower wage workers adding to inflation, it is true that the poor tend to spend a much higher percentage of their income than do the wealthy. However, there are two things that must be taken into consideration here. First, if, as we have postulated, businesses will be more productive in a higher wage world, then they should not have to raise their prices dramatically just because there is increased demand. Second, those earning minimum wage spend all their money because they must, simply to get by. It is possible that with higher wages weÃ??'Ã??'ll begin to see some saving, thereby mitigating the inflationary pressures. Professor Waltman points out the Ã??'Ã??'infuriatingÃ??'Ã??' incongruity inherent to this argument: Ã??'Ã??'When was the last time you read an article about Wall Street bonuses or CEO pay that mentioned the possible inflationary effects? In 1999, Wall Street bonuses reached $13 billionÃ??'Ã??'¦some of that was undoubtedly saved, but a lot of it went for additional homes, expensive vacations, and luxury cars. Not one word was said about how inflationary this might be, nor did economists issue such warnings.Ã??'Ã??'Excerpted from Stocks, Futures and Options Magazine, Jan. 2007. Copyright Ã??'© 2007 SFO Magazine All rights reserved.
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More Information
Information about Jerold Waltman's next book can be found at Minimum Wage Policy in Great Britain and the United States
Information about Jerold Waltman's next book can be found at Minimum Wage Policy in Great Britain and the United States
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CHOICE December 2004 - Highly recommended. | More »
CHOICE December 2004 - Highly recommended.
The living wage is a minimum wage set high enough to ensure a decent way of life. In the first two chapters Waltman (political science, Baylor Univ.) draws from philosophy and theology to support his view for a living wage and reviews the extent of poverty and equality in the US and UK. The author then explains why the living wage is a better way to address the problems of poverty and inequality than other alternatives, which include means-tested cash transfer programs, basic income guarantees, earned income tax credits, employment subsidies, and (probably most controversially) economic growth, on the grounds that the latter approach does not address inequality. After describing the mechanics of the living wage, Waltman addresses the standard counterarguments -- that it threatens to create unemployment, inefficiency, inflation, and increased illegal immigration. The author contends that the public would support the living wage and that instituting it would be the appropriate avenue of welfare reform. His book makes an effective case. The first two chapters are more scholarly, and the rest are more policy-oriented. This volume will not be particularly useful to specialists in the field, but it does provide an excellent introduction to the subject, especially for undergraduate students. Summing Up: Highly recommended. General readers; students, lower-division undergraduate and up.
Library Journal October 15, 2004 | More »
Library Journal October 15, 2004
One of this fall's campaign issues is wage equity, as the enormous gulf between the wealthiest and the poorest Americans widens even more. Waltman provides a lucid, detailed background for debates on welfare, workfare, and the "living wage." He reviews U.S. policy and demonstrates why early advocates of the welfare state wanted a living wage, why it has failed, and how it could be an essential element in providing economic justice and contributing to the prosperity of all. He also explicates the difference between a minimum and a living wage and a fair and a just wage. Why have we lost the connection between work and just compensation? As he explores this question, Waltman uses case studies and statistics to explore the root causes and issues of poverty and inequality. His graphs, tables, footnotes, and bibliography will help researchers and students understand and explore this topic more fully.
Every voting American should read this work.
Church Action on Poverty | More »
Church Action on Poverty
Your books have given me insight into the moral religious argument in favour of, the socio-economic condition for, and the political implications of enacting the Living Wage. I have found them both interesting to read and extremely useful tools for overcoming the practicalities of campaigning. I regularly refer to them in order to answer specific questions or appeal to certain audiences. For instance, for a letter to the Financial Times I would emphasis the economic, ‘good-for-business’ argument about increased productivity/reduced staff turnover...I want to thank you for the invaluable support you have provided...
George Waterhouse, Living Wage Coordinator
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Pages 244
Year: 2004
LC Classification: HD4918.W264
Dewey code: 331.2'3'0973 dc22
BISAC: BUS022000
BISAC: POL013000
Soft Cover
ISBN: 978-0-87586-302-3
Price: USD 22.95
Hard Cover
ISBN: 978-0-87586-303-0
Price: USD 28.95
eBook
ISBN: 978-0-87586-304-7
Price: USD 22.95
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