4 days into the New Year and a lot of people are trying to put the pieces together after shattering their budget last month. We’ll know the final numbers soon, but in pre holiday surveys Americans said they planned to spend more. On average 830 dollars --up about 100 dollars more than last year.
And why not? It was the first holiday shopping season since the crash of 2008 when average folks felt secure enough to spend---despite the reality that wages are on a steady decline. For so many, dwindling wages can’t keep pace with the cost of living. More people may be working, but many are not making the oft-described livable wage.
It’s why many minimum wage workers have taken to the streets to campaign for higher wages. Out in front—fast food restaurant and retail sales workers. I spent some time in San Francisco recently and wondered how they could live in that very expensive city. I thought Boston was costly, but by contrast San Francisco is out of bounds, even for people earning much more than the minimum wage. I can see why there is extreme tension between the well paid tech employees who are shuttled to work on free luxury buses, and provided free food, and the regular workers riding in the considerably less posh public buses, which riders complain are chronically late. By the way, just one ride on the famed cable cars now costs 7 dollars.
Momentum seems to be gaining for a 15 dollar minimum wage, even as there continues to be a debate about whether small businesses and the economy overall can afford 15 dollars an hour. It’s an amazing shift, since early on the Fight for 15 campaign seemed to be a political impossibility. Almost two years ago, Massachusetts lawmakers signed off on an 11-dollar minimum wage, at that time the highest of any state. But, when that rate hike actually takes effect in 2017, several cities like San Francisco will pay their minimum wage workers 15 dollars an hour. A year later state workers in New York city will see an increase to 15 dollars, those outside the city soon after.
Here in Massachusetts there is proposed legislation to allow cities and towns to set their own minimum wage. Cambridge is pondering a move to do that. But, I’m not sure how having different minimums throughout the state would help. What I am sure about is that the Fight for 15 is at its core striking evidence of income inequality. Raising the minimum wage significantly probably won’t be enough the close that gap, but studies show that a strong minimum wage improves overall financial well being. And on this first week of a brand new year, couldn’t we all use that right about now?
>>Callie Crossley's commentaries can be heard on Mondays on WGBH News. Previous commentaries can be heard here.
