WWL>Topics>>3-13-14 11:10am Garland: on minimum wage

3-13-14 11:10am Garland: on minimum wage

Mar 13, 2014|

Garland talks with Jan Moller of the Louisiana Budget Project about whether or not the minimum wage should be raised.

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Automatically Generated Transcript (may not be 100% accurate)

-- backward thinking about it. Minimum weight. Number of legislators. During this legislative. Session. Or good present builds that would raise the minimum wage above the federal standard which I think it is. Summer on 77 dollars 25 cents an hour. Ribs are young -- with a salute you general budget project to veterans stimulus young welcomed the -- I thank you for having great to be here to tell me what the the builds it can be present what the or else people. Well there have been in more than it. It doesn't bills filed by various legislators for the session and they all do kind of slightly different things and I don't think you want to go through all of them but -- some of them would raise the minimum wage just by five cent a bulk of the federal. What age. And some of them would go as high as ten and an hour which is the minimum wage that President Obama is advocating. Sentiment. -- seven point five as the current federal and Louisiana as one of just five states. That doesn't have its own minimum wage law on the books -- we kind of default to the federal wage. But across the country a lot of states. Decided to take matters into their own and and and raise the minimum wage on the on 21 states plus the pedal. District of Columbia. Now have a minimum wage law that the -- -- They have their abilities studies as soon. Once a minimum wage is is -- -- plays sort of thing compelled -- introduced. Adopted ten dollars an hour and studies as to what the repercussions or other pro or con. Well there is who we think that there or repercussions are good because -- you know there's the argument out there that if you raise the minimum wage employers gonna cut. Job but real world experience. Hasn't shown that to be true and the reason. To. Well there are studies that show that and and we know that from states that have raised the minimum wage you can compare what happens in that state vs the state right next door that may be a very similar. Demographic and economic conditions in it and put side by side one of them be in Oregon and I have an Idaho for example organize a much higher minimum wage. And Idaho. And the reason that and obviously -- the impact is different on on into -- you know berries does this by business but in general idea is that when you give workers. At the bottom rung of the economic latter he raised. Just spend all of that money in the economy and you're spending is mine human mind spending securing and that's how the economy works when people more money to spend. They buy more issues they take their namely that to dinner more than I'm more close. And groceries and that in turn supports job so while. It's not fun I guess for some businesses that have to pay their workers a living wage. It also puts more money in circulation in the economy so. We. That you do we just did -- report that relied on some numbers from the Economic Policy Institute the -- if you raise the minimum wage in Louisiana. It would actually at least small net positive effect on jobs and that's because all the consumer spending that result. Which organizations. That economic. That the Economic Policy Institute out of Washington DC found they ran the numbers for -- we did the report. Where and when you have -- saw both sides one group. Doesn't -- one that goes well what's the different UC what happened. Well the main thing that. Happens is that that people who work full time 52 weeks a year make enough money at their jobs to Tuesday about the property. They're still not making great wages but they're making enough. To keep namely above. Three just about the part poverty line and provide basic necessities. You know there's this. Image out there that the only people making minimum -- are teenagers who are making you know working part time at the mall. That couldn't be farther from the truth less than on 9% of the minimum wage workforce are teens most people working these jobs there are adults. The majority of women and about two thirds minimum wage workers work full time so the main thing that app. -- as people have more money in the pockets and and and can. Provide for themselves. And the other thing even though employers sometimes you know don't want to pay higher labor caustic cuts and their margins. The other thing that happens is that it cuts down on employee turnover on this happened in California way in the airport workers. That the airport raised its minimum wage from from seven something to ten dollars an hour. And what happened is simply turn over failed dramatically. And that saves companies money because they don't have to recruit and train as many people to replace the ones to quit and fall way. OK let them go back to question. And and a promise through deuces nada. Under -- her gotcha question I'm really trying to veterans and boots on. -- and a -- -- the state to grows up with the minimum wage thing now making a minimum. Or I mean they make a living word whereas before. There were probably of the poverty level is there any indication that social safety nets. For want of better word lose people because now they're making a living wage. That it actually play a secondary benefit of of raising the wage is that people become less dependent on social safety net spending. There was a study that came out just last week that looked at the effect of higher minimum wage on food stamp benefits. And in Louisiana if you were to raise the minimum wage to 1010 an hour the president's plan. You would cut the food stamp rolls by 65000. Of people in this state and that would save a 109 million dollars. That's now going to do now that now being spent on food stamps in Louisiana. So that the that the thing that policy I think that would promote the value work and lessen people's dependence on government programs. Berrian pursuing were -- product we're talking with -- -- -- and -- budget project and we or thinking all bow. To raising the minimum wage in Louisiana what do you think. 2601. Celebrity questions comments or long distance it's free. 18086. Dictated -- zero he'd set. Number builds heading for the state legislatures. Concerning minimum wage wanting to raise it. RWW Oprah drug more opinion poll we should we raise some language we you know are not pretty evenly distribute. 54%. Against it in 46%. For where a young vulnerable with the flu -- budget project who's in favor raising. On a middle -- let's bring in a couple of caller ID Euro and with the on appreciated the call. Very cute term partner -- for 6% market that would make it that we partner or. Absolutely think he should be able to to raise the minimum wage prepared. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Well you know a lot of people would graduate college the last five years. -- find the job but they train for all the exceptional so much. Protect jobs and it you know all of the job there -- direct which are Richards street overseas which could see some mobile coming back. Okay they're. Appointed to work forty -- week. -- -- -- -- like him to where they're coached in the -- you're so on and so it. Would be more respectful. We give them a better. Well argue for understating. -- -- -- war first is OK okay yeah they're and you still got to go to all they have been happier now. I couldn't agree with you more that's. As part of the report that we put on this a couple of weeks ago we have to analysts' view. To ask the question and appalled that they took in November. Whether it Louisiana and support raising the minimum wage to 850 an hour. And then indexing that inflation's so that it grows with the economy over time. And the support that was 73%. Among the people that took the pole and the support was across demographic groups. -- white black young old urban rural even 62% of Republicans. Who in -- -- Supported raising the minimum -- so when you take the politics out of it and it has become a very political issue. And you just that people and again it was in November before this issue -- it -- -- line. People really support raising the minimum wage maybe not quite as forced the president months ago but but oh what what the minimum is today. All right let's go to -- jewelry -- your own -- Don Mueller. -- -- Yet. Actually have a question. Com. I'm I'm I'm a comment so. I've been trying to make up but it you raise the minimum wage up there and this is a business and keep their profit margin dot. Aren't they got -- rate across there and then everybody all your management now any corresponding. Raise and -- to keep them. But now out and help it is. -- don't explain. -- if you do. Raised the minimum -- it could have been very modest effect on prices that. I will note did that two thirds of minimum wage workers work for large corporations. Companies with over a hundred employees to places like Wal-Mart and target McDonald's. And then large hospital chains and and and places like that. That in most cases can afford to pay. Slightly higher wages without raising prices across the board I don't think wal mart's prices are any higher. In state with a higher minimum wage than they -- in Louisiana could be wrong about that so. But it's also true that if you raise the minimum wage. Of that this Frontline workers. Than the people who are making slightly above minimum wage maybe the managers in the assistant managers to McDonald for example. Would also be in line to get a raise the others direct effects. But the great thing in minimum wage and then there's what we call in direct -- with people who would get their pay bumped up even though they might make a little bit above the minimum wage. Would the new minimum wage. As its stance. And that's saying it I don't not going to make them want to raise the cost of their goods because the businesses and where profit margin percent. So that I'm staying -- I'm just saying that if you raise the minimum wage and. At her a couple of years and isn't the price of everything and Angola and it's gonna be electing every step minimum wage again. Well. Think that folks are getting a raise the folks who would go from 725 that -- nine and a quarter or or ten dollars an hour which still come out ahead. Because don't forget people who make way more than the minimum wage and Garland for example and and others. Aren't going to be paying those higher. The prices so so. You're spreading higher prices among everybody not just those two would be benefiting from the minimum wage but I think you do have a very legitimate point and I think. Some businesses would respond to this that would slight price increases. -- don't believe him -- -- poverty level. It -- August just curious about that because. Good question it's about bush peca. Even Jacobsen viewed that it's very good quick -- our president of -- absolutely out yes. He has to do would you -- blown apart our -- point out that we've lost a lot of jobs who -- important number editing where we're starting to get back some of the common laborer drugs. Align with the oil energy sector. But we're losing jobs to a -- countries on and automation. What happened to appease. Accompanies a ball hundred employees or more since I've been bitten. Holding law and joining technologies. And going to computerization. Robots. Now -- thing -- -- is that Lutheran. Don't think that's such a big threat because most minimum wage jobs directly tied to the location where they are they retail jobs. There's a lot of jobs in the health care sector nurses' aides. Cashier's. That they aren't jobs that can necessarily go overseas. The majority of jobs the situation we have been in Louisiana you right there have been a lot of jobs created. Around a week or as as you know -- on one of the poorest states in the country we have the dark eyes poverty rate but we also happen. And unemployment rate that's below the national average which we hear from the governor time day after day and he's absolutely right we have done better jobs. But most of the state but with those two facts take it together palaces that we have an awful lot of people working. For -- low wages and all we're saying is. If you give these workers a little bit of a raised they'll be less dependent on -- government programs and safety net programs and more able to provide for themselves and not live in a country that provide for the basic necessity. He could -- was rude question but for the higher repeat workers. If the minimum wage goes up does their salary gets for play -- pressed let's say. There they're pretty good worker there making quite a bit above minimum wage but. The company resentment language in this -- in the of the raised and we would go on and on to raising the minimum way. I I don't think so because I think hired. Paid workers are generally those who acquired skills. And training people with more education and specialized skills and they are always going to be in demand Dinka the governor's focus this session. Is on workforce development and training. Do it two -- workers Wear for the jobs of tomorrow and that's an excellent spoke as we do a lot of skilled jobs coming on line when he to have the workers to fill those. And if you go get the skills. That European find the job that pays well above the minimum wage. But that doesn't take away that -- it's always gonna need people who work in nursing homes who work these retail jobs jobs that don't require a lot of skills. But. They're still. Hard jobs they're still important jobs and they should pay a wage that and again pull -- somebody who works full time to keep their head about property. You and -- -- -- and budget project and nutrients you're gonna work on my salary. Output -- -- -- -- it needs -- now on count on John thank you very interesting well I sure appreciate it accurate by its numbers. Have a right we're here these other side and language debate. So it would go -- and we call -- the thing.