Today’s increase in the minimum wage is a welcome boost to working people’s quickly-shrinking pocketbooks.  The second in a series of three increases in the federal minimum wage goes into effect today, boosting the minimum wage from $5.85 to $6.55 per hour and bringing some 13 million low-income Americans closer to gaining a foothold in the middle class.  As their wages increase, low-wage workers will be better able to care for their families and provide for their basic needs.

But while the 70 cent increase is a modest step in the right direction, it’s far from enough to temper today’s volatile economy.   Rising inflation – especially in gas prices – continues to eat away at the value of the minimum wage and of all wages.  Before the Fair Minimum Wage Act passed in May of 2007, the real value of the minimum wage had dropped to its lowest level in 51 years.

Senator Obama supports indexing the minimum wage to inflation so that it once again becomes a living wage.  His position stands in sharp contrast to Senator John McCain, who has repeatedly voted against legislation to increase the minimum wage, and whose economic agenda is lockstep with the old failed policies of President Bush.

To truly aid working families, we need to build an economy that works for all, not just the top 10 percent.  We must develop a fair and sensible trade policy, invest in our nation’s infrastructure and clean energy, protect retirement security, and provide secure, high quality health care for all.

Working families need broad-based, long-term changes to turn around the declining economy and reward the hard work of all America’s workers.

This entry was posted on Thursday, July 24th, 2008 at 11:17 am and is filed under Politics .