I DISAGREE WITH PRESIDENT OBAMA (A Follow up) (C) 2014 by Wayne Dan Lewis, Sr

Previous Blog:  A Letter to the White House: 
I DISAGREE WITH PRESIDENT OBAMA (c) 2013, by Wayne Dan Lewis, Sr.
http://thecovetedcommandment.blogspot.com/2013/12/i-disagree-with-president-obama-c-2013.html

As you may recall, I sent a letter to President Barack Obama regarding increasing the Minimum Wage.  Below is the context of that letter, and below that, is his response.  i conclude with my thoughts/response to the Letter from the White House.
 

 

 

Subject:        Raising the Minimum Wage[9]

President Barack Obama

The White House

1600 Pennsylvania Ave. NW

Washington, D.C. 20500

Re: The Federal Minimum Wage

Dear Mr. President,

I hope this letter finds you and your family in the best of health. I am sending this letter to let you know that I believe that your support for an increase in the Federal Minimum Wage without a savings plan is counter-productive.

I agree with you, Mr. President, a decent living wage should be paid to everyone. But, I can only agree to the point that increasing the minimum wage should not be without providing a government-backed savings plan to help those in low-paying jobs build wealth for themselves and their families.

Mr. President, there are not enough training facilities in our communities. In New Orleans alone, training facilities that once numbered well into the teens, are now fewer since Hurricane Katrina. We need training facilities in New Orleans that help young people who don’t have to go to college, learn a valuable trade that pays them for their skills. For example: Welders, Carpenters, Electricians, Plumbers, Computer Technologists, Nursing, X-Ray Technicians and other meaningful, skill-leveled positions that improve the motivated person, where they can get paid according to what they bring to the table, as opposed to causing businesses to be forced to increase wages, while affecting their profits.

Can we have both? It’s possible, but small businesses should not be punished. Minimum wage earners can’t continue to depend on jobs that are going to be gone in the next 10 years, and then have no skills to fall back on. This is the foreseeable future, and it is important that if the government can make an impact, this is that opportunity. Please provide training facilities to help prepare our communities with sustainable skills and jobs.

I hope that you will give this great consideration, Mr. President.

Your time is greatly appreciated. Merry Christmas and a Happy New Year to you, the First Lady, Sasha and Malia.

Sincerely,

Wayne D. Lewis, Sr.
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President Obama's Response (transcribed):
March 19, 2014

The White House

Washington

 

"Thank you for writing.  Since I toook office, I have brought a relentless focus to creating jobs and restoring opportunity for all.  And thanks to the grit and resilience of the American people, we have a lot to show for it.  Our businesses have created more than 8 million new jobs over the past 4 years, and our unemployment rate is lowere now that at any point since the of 2008.  And companies say the intend to hire even more people in the months ahead."

 

"But even though our economy is getting stronger, too many Americans aren't feeling it yet.  Our job in Washington is to make this recovery real for everyone, and I want to work with Congress to take proven steps to put more Americans back to work right away.  But Americans who need jobs now cannot afford to wait for Congress to act.  Wo whever and wever i can, I am taking steps on my own to expand opportunity for more families.  And I am asking leaders across every sector and every state to join me."

 

"Together, we are launching hubs for high-tech manufacturing that connect businesses to research universities and create durable, American jobs.  We helping small businessess grow and hire by making it easier for them to ship their products all over the world.  I am taking executive action so more businesses can take advantage of our booming energy economy-----oil, gas, and clean energy alike.  These are only a few examples.  You can see more at www.WhiteHouse.gove/Year-Of-Action ."

 

"As America keeps creating jobs, we also need to make sure those jobs pay a fair wage---not just because it's the right thing to do, but also because it's good for businesses' bottom lines.  That is why I raised the minimum wage for workers on Federal Contracts, and I keep pushing for Congress to raise it for everyone.  And to make sure America's workforce has the skills to fill the jobs of today and tomorrow, we are launching an across-the-board reform of our job training programs, and doing even more to guarantee every child access to a world-class education."

 

"Thank you, again, for taking the time to share your thoughts. The bottom line on jobs is that I'm going to keep doing everything I can, every single day, to find new ways to help folks get back to work, and start getting ahead.  I encourage you to follow those efforts ast www.WhiteHouse.gov/Economy"

 

"Sincerely,

 

 

Barack Obama"

 

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My summary of the President's letter/Response:

1.  I received a response.  I expected a response, because whenever I have written a president, they always responded.  I appreciate that much about our govenmernt.

2.  Did he respond to my concern regarding minimiwage?  Yes and no.  Here is how:  Yes, because he referenced minimum wage, and ensuring that every American be paid a decent living wage, in short.

No-because he did not reference the issue of preparing those who may receive an increase in their income how to save or invest their money.

No-because he did not reference how it maybe possible for businesses to increase wages without affecting the economy.

No-because he did not address how businesses are going to be required to increase their wages to their employees, without going up on their goods and services.

 

I want to take this opportunity to thank President Barack Obama and his staff for taking the time to review my concerns and respond.  I don't think that my one letter will cause him to rethink how increasing the minimum wage without affecting small businesses, and the communities that they serve, through possible increase in prices, or possibly laying off some of their employees in order to accommodate wage increases, will cause him to change his mind.  It will be an on-going  battle for small businesses, but not one that will be won with one letter, or one necessarily one person. 

 

Disclaimer:  No part of this letter maybe copied without permission.  Information provided here is deemed to be from reliable sources.  No part of this information should be considered as legal advice, or counseling.  Consult your respective professional regarding your specific concerns.

 

 

 

 







 

Does Increasing Minimum Wage Reduce Poverty, or Cause Financial Harm?

The Coveted Commandment-Thou Shalt Build Wealth © 2013

by Wayne Dan Lewis, Sr.

 

Can more harm than good come from raising the minimum wage?
 

http://www.upi.com/blog/2013/02/12/WATCH-Obama-calls-for-minimum-wage-increase-in-State-of-the-Union/2131360727252/?rel=37331360659600

 For those of us who heard President Obama’s speech on Tuesday night, among the many highlights mentioned was the encouragement of Congress to pass an increase in the minimum wage.  The magic number:  $9.00 an hour.  That would be an increase of approximately 20%, up from $7.25 an hour.  For many low-wage earners, that would be great news, and I sincerely hope that they are able to get it, somewhat. 

 http://www.dol.gov/whd/minwage/america.htm

 

I say ‘somewhat’ because for what it is worth, we hardly discuss the fact that wage increases of this nature, on a national level, hardly translates into a rise from poverty.  Let’s be fair and straight with America’s minimum-wage earners regarding the real impact of an increase in the minimum wage and how it eventually looses its power to raise hard working, poor people out of poverty.

 http://www.minimum-wage.org/wage-by-state.asp

 

While the increase is a means of ensuring that American workers are able to make some type of, dare I say, decent wage in order to survive, it doesn’t do enough, and perhaps, and hear me clearly, it could never do enough for America’s wage earners.  Why?  For 2 reasons, as I hope you will hear me out.

 
http://www.whitehouse.gov/state-of-the-union-2013

First of all, on the plus side, increasing the minimum wage helps struggling families to “momentarily” improve the quality of their lives.  For example, if a 4-member family with one (1) wage earner is able to increase his or her income to $9.00 an hr, all things being equal, that family would go from an annual earning of $15,080 to $18,720.00.  That is a 20% increase to their family income, or $3640 a year more.  Or more specifically, $70.00 a week more.  This is great, and because I have been on that side of minimum wage, I always rejoiced whenever I received a raise, whether it was minimum wage, merit raise, or a “I’m in a good mood” raise (never happened by the way). 

As I remember growing up, beginning work as a high school kid, making above minimum wage because I was in a Union, I always remember someone always saying that even as we received an increase in wages via the union, it didn’t amount to much because the government was going to “take it before you make it.”  My union buddies would always remind me, that because I was in high school, and that I was single, that the government was going to clean me out on taxes.  And they were right.

 

http://www.treasurydirect.gov/indiv/tools/tools_savingsbondcalc.htm

 

Additionally, someone else would remind me of the fact because I was making more, even if 50 cents more an hour, that I would now be spending more, inspired to spend more than I actually made.  And because of that sidewalk, locker room consultation, I found myself in the very boat that they described.  But not all was grim.  My parents always continued to emphasize that I was to put money on the side.  My parents always wanted me to put money in a savings account.  They always wanted me to buy savings bonds.  But would I listen?  Nooooooo!

http://www.goldprice.org/gold-price.html 

On the negative side, everyone is not going to necessarily get a raise.  I repeat, everyone is not necessarily going to get a raise.   While the money will be on their payroll check as $9.00 an hour, many wage earners may see their hours reduced, or perhaps, have their hours cut all together.  Why?  For employers, with 10 to 50 employees for example, full-time, that money has to come from somewhere.  10 employees with an increase from $150,800 to 187,200, would be an additional $30,000 from their profits, plus any additional costs that comes with paying higher wages.  With 50 employees, an employer’s payroll goes from $754,000 to $936,000, an increase of $182,000.  Where is an employer supposed to come up with that money, when the government says they have to do it, and there is nothing or anyone else stepping up to fill in the difference?  

There is no question that employees are entitled to a raise, but how are employers going to make up that increase in payroll?  Could it be reasonably considered the cost of doing business?  Where is the money going to come from?  We know that employers have this as a question, and often the answers aren’t choice ones.

1. From the sky?
2. Employee pay-back plan?
3. Employee lay offs?
4. Federal government who passed the increase in the minimum wage law?
5. The consumers who buy and receive services?
6. Out of the employer’s profits?

Several of these answers are ridiculous, no doubt.  But then again, perhaps they all are.  Let’s take a quick look.  No, the raises aren’t going to fall out of the sky; employees aren’t going to pay their employers back their hard-earned wages.  Layoffs may not always be a good option if the business is there for the owner.  The government has its hand out already waiting for the taxes from the increased wages, so forget them helping out.  Asking customers to pay for the raises can sometimes be a self-closing move, even if the owner/employer goes up 2 or 3 cents here or there.  And of course, asking the employer to cut their profits?  Well, that’s a tough pill to swallow.  Plus, I left off one other possibility:  Close down all together.  That one final option is not one that is out of the question for some business owners.  And, where would that leave employees if the business closes down?  We would, no doubt, see unemployed workers.  This of course is in the context of how employers’ would look at the circumstances of an increased payroll by way of increasing the minimum wage.  No suggestions here, but these are the circumstances a business owner have to consider when the President and the Congress increase the minimum wage.

http://www.ehow.com/how_6763183_calculate-cost-doing-business.html

Conversely, this is an opportunity for those on minimum wage to look at these circumstances, where employers weigh out their options in the face of increasing not only minimum wage, but perhaps other employees who often want a raise as well, whether to cut payroll by laying off employees, cutting hours of existing staff, closing up all together, or just grinning and bearing it..  For the minimum wage earner, this could be a wake-up call to be on guard.  This is an opportunity to weigh your options for improved opportunities, several of which you may be able to create.  Why?  Because of several of the reasons mentioned above, minimum wage earners should be putting together a plan to prepare for their next move. 

 

If an employer decides to cut payroll by cutting employee hours, or to lay off employees, or worse yet, close down, today’s wage-earner needs to be sure that they have something to fall back on.  While another job would be great, it’s not promised.  Today’s minimum wage-earner needs to prepare for their next move and here are some options:

1.      Consider going to school (trade, junior college or 4 year).  There are some programs that provide financial aid or assistance.

2.      Consider starting your own business (obtaining an equity line of credit, Small Business Loan, partnering with family or associates)

3.      Consider getting a second job, but with the intent of building a savings plan that itself has a long term benefit.  A second job that only provides a supplement to the 1^st job, and no means of increased savings put today’s wage earner more at a disadvantage than leveling the playing field.

 

Increasing the minimum wage is a small step toward reducing poverty.  But today’s minimum-wage earner needs to think outside the box.  That minimum wage position is constantly being evaluated by employers for either elimination or reduction in value.  Regardless of how great an employee is, an employer has his or her own family and business to be concerned about.  And no doubt, they are going to put a minimum-wage earner low on the lists of priorities when it comes to maintaining their business.

However slight a wage increase maybe, it could very well be for a short time, where today’s minimum wage-earner finds him or herself looking for another position due to layoffs or business closings.  The chances will be a challenge because today’s employers will all be looking at positions on their roster that can be minimized in order to maximize their profits.  It would be in today minimum wage earner’s best position to consider other options that will help them prepare for tomorrow by finding ways to improve the quality of their lives by increasing their marketability, or striking out on their own. 

In conclusion, I believe that increasing the minimum wage will lift people out of poverty, temporarily, but without the benefit of preparing them for the outcome of a wage increase, it is possible that more harm than good can come from raising the minimum wage for those who may actually fall victim rather than benefit.