Minimum Wage Increase Good For Economy


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2013 starts off with some rare good news for Rhode Island’s lowest paid workers. Or, put more accurately, the bad isn’t as bad as it’s been in years past. Yesterday, the state’s minimum wage went up 35 cents to $7.75 an hour. In other words, about 30,000 Rhode Islanders who were making about $15,000 a year will now be making about $16,000 annually.

But even though this small increase isn’t enough to lift anyone out of abject poverty – or even keep up with inflation since the last time it was raised six years ago – it’s still really good economic news for the state as a whole as we can pretty much rest assured that every single person benefiting from this increase will put their extra earnings directly back into the economy.

“Rhode Island’s modest minimum wage increase this year will help promote economic growth by boosting the exact kind of consumer spending that we need to accelerate the post-recession recovery,” said George Nee, President the Rhode Island AFL-CIO in a press release.

Not only is raising the minimum wage good for the economy, but the companies that tend to employ minimum wage labor can well afford to help out their employees and the economy in this way.

According to this report, “the majority of America’s lowest-paid workers are employed by large corporations, not small businesses, and that most of the largest low-wage employers have recovered from the recession and are in a strong financial position.”

Nee has said he will lobby for another minimum wage increase for the poorest Rhode Islanders, but a federal increase is what is really needed. “Congress should not only learn from Rhode Island’s example by raising the minimum wage, but it should also index the minimum wage to rise automatically with the cost of living so that low-paid workers do not fall further behind each year,” he said.

This from the release from the AFL-CIO:

In real terms, the federal minimum wage is 30 percent lower today than in 1968. The Fair Minimum Wage Act of 2012, introduced in the U.S. Senate and House of Representatives in July, would help recover much of this lost value by raising the federal minimum wage to $9.80 by 2014 and adjusting it annually with rising living costs thereafter.

Payday Loans, Poverty on Tap Today at State House


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The State House in November.

Payday loan reform legislation has one of the  most interesting coalitions at the State House; it includes the progressive community, the faith community and General Treasurer Gina Raimondo. This is because payday loans are bad for the state in general, poor people in particular and a net drain on our economy.

Today on Smith Hill, legislators will hear from the faith community on why predatory payday loans should be controlled as well as why legislators should do more to protect the most vulnerable residents of Rhode Island.

The vigil starts at 2:30 and the group will walk from from Gloria Dei Lutheran Church to the State House, where Rev. Don Anderson and Linda Watkins as well as Lt. Gov. Elizabeth Roberts will make speeches.

ProJo columnist Ed Fitzpatrick made a great point about this event in Saturday’s paper. He noted that Gov. Chafee and Bishop Tobin both had ample time over the busy holiday season to debate what monicker we give to an ornament at the State House and wonders if either will have time to show up for this interfaith vigil meant to focus lawmakers attention on poverty.

“Surely, if they feel so strongly about a symbol of the season, they can appreciate the symbolic power of uniting against poverty in a state with the nation’s second-highest unemployment rate (10.4 percent),” he wrote. “I mean, if they’re determined to take a principled stand, how about taking a stand against poverty on the very spot where that controversial tree stood?”

Here’s hoping they can both make it.

The Ecology/Economy Interface In 2013


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Had a very interesting morning, reading about the next economy and walking in the woods along the Seekonk.

The reading was a mixed bag.  Some articles in the book “The Coming Transformation” edited by Kellart and Speth, an editorial in the Projo based on its long  series of articles on the economy (continuing its prescription that will not fly), and my weekly dose of ecoRI news, with reports on the Green economy and smart growth.

The trip to the river was excellent.  The mix of sun and clouds as the sun rose in the east, an eagle and a set of coyote tracks going along the same trail I was using.  In the three days since the snow the lone coyote track was the only thing on that trail.  It occurred to me that it might be nice for someone else to see the coyote trail so I tried not to step on it, but it was difficult. The trail, which I know quite well, is relatively broad, but it only has one good track for traveling the side hill.  The coyote was in that one track, so if I wanted to avoid the footprints, I had to walk off the real track, and it was clearly noticeable, I was just a bit off balance the whole time.

The eagle needs comment only because this year you see one nearly every day along the Seekonk, whereas when I moved to town 16 years ago I did not see any in this spot for several years.  Over the last 15 years they have become more and more common along the Seekonk, with at least 3 seen regularly this winter.

Getting back to following the trail, the coyote and I both followed a trail that was shaped by the contours of the hill (as modified by the trail maker).  The economic trail the Projo offers us ignores the contours of the land, offering us a vision of what the 1% would have us do to enrich them.  The environment, poverty, people, irrelevant.  We shall replace the people of RI with some mythological ready for business automatons that shall lets us pollute and steal to our hearts content.  They never explain how this benefits anyone other than the 1%.  They have been saying the same thing for at least 50 years, low taxes, bust unions and all will be right with the world.  If it worked so good, everyone would have been there years ago. There is no vast left wing conspiracy in the US with enough power to undermine the capitalists if they had anything of value to offer.  The Projo needs to understand that only economies with economic equality as a goal and practice can go forward successfully in the 21st Century.  As long as we try to enrich the rich, the RI economy is going to stay dormant.

Strike two for the Projo, and for all of the other commentators I read, is the continued expectation of economic growth.  If all the growth is pumped up funny money based on treating workers like dirt, financial shenanigans like looting pension funds and tax breaks for the rich, and the destruction of the global forest, can it really be called growth if more and more Rhode Islanders struggle to make ends meet? And the planetary systems are more and more damaged and less and less productive. 93% of the growth in income in the US over the last 5 years has gone to 1% of the population.  Do the math, If the second through the 10th percentiles did just a little better over that time, the other 90% actually lost income.  The economy being offered by the Projo, and the smart growth advocates is guaranteed to fail the community and the planet.  The fiscal cliff is just the latest farce in this tragedy.  There has to be a better way, and there is.

My goal for 2013 is to make sure that in Rhode Island the economic alternative to the global capitalist order that is eating the planet and poisoning the poor gets noticed and becomes more integrated into how we think about the economy and what we do to improve it.  Towards that end there will a conference on October 12 2013 Ecological Healing, Ecological Economics, Economic Justice:  Creating prosperity for the 99% in Rhode Island.  You should all put that in your calendar and make plans to attend.