Wednesday, June 21, 2006

Chicago Residents Want "Big Box" Retailers To Pay Better

In a recent poll of Chicago residents, they were overwhelming in favor of requiring wage and benefit standards for "big box" retailers such as Wal-Mart. This was so even if such standards would cost the city jobs due to the retailers opting not to open. Based on the poll, 84% wanted retailers with at least 75,000 square feet of space to pay at least $10/hour and $3/hour in benefits.

It seems that any time a minimum wage increase is spoken about, there is an outcry that it would hurt businesses. Not that the retailers in Chicago are only paying minimum wage, because I don't know either way, but according to the Economic Policy Institute and the Center on Budget and Policy Priorities, the buying power of the minimum wage is at a 51 year old low. I don't know whether raising the minimum wage or measures such as the one in Chicago will hurt businesses or not. What I do know is that there is something wrong with our society if we cannot pay someone more than $10,712/year. It doesn't seem that is much of a living wage in any part of this country.

I don't think it would be hard for someone to convince me that forcing a company to pay more for something will cause them to have to make that up in some other way, but it would take a lot more to convince me that it's still not the right thing to do. Sure, some companies would not be able to go into business and, therefore, would not be producing jobs at all, but salaries are just one factor. And they are too important of a factor. There are other cost issues that companies have to deal with - a failed health insurance industry that makes it almost impossible for companies to be able to cover their employees as well as rising costs in many products and in rent - so singling out salaries that will make the lives of American families better off is just not right. Notice who the outcry is from - usually businesses and members of Congress whose campaigns (and personal pockets) are compensated much more by lobbyists than what is paid to workers receiving the minimum wage.

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