Cross-posted at My Left Wing
So, why do I write about economics on Democratic blogs? Isn’t economics the realm of Republicans? No. Republican economists typically lack methodological depth; they look at surface numbers without seriously looking at the components of those numbers. But there is a deeper reason for this: economics is essential to understanding what is happening and creating and implementing policy. Economics is the tool that will help the Democrats create a better America if we use the tools economics provides.
The Bureau of Labor Statistics has broken down those who make minimum wage in a study title “Characteristics of Minimum Wage Workers.” Here are some general observations from the study.
49% of minimum wage workers are over 25 years old. Assuming a job is for extra cash or part-time spending money, I don’t have a problem with a teenager or college student making at or near minimum wage. . I think the lessons and skills learned are just as valuable as the actual paycheck. However, when someone older is making minimum wage, questions such as “is the actually enough money to live on?” arise. In that case, the answer is usually no. In addition, that statistics don’t provide any breakdown of what percentage of the under 25 category is in fact a kid making extra money.
Women comprise 68% of the over 25 minimum wage workforce. This is a very revealing statistic. I have to wonder, “What percentage of these are single mothers?” As of yet, I haven’t found anything solid in this area but will keep looking.
61% of minimum wage jobs are part time. This makes sense. Some part-time employees fill in the gaps of a manager’s schedule. However, some large employers have used part-time to their financial advantage (see Wal-Mart). An employer typically does not offer part-time employees certain benefits such as health insurance.
28% of minimum wage employees have less than a high school diploma, 31% have a high school degree with no college and 32% have a high school degree with some college. This statistic should come as no surprise. Higher educational achievement = higher income. However, given the incredible rise in the college tuition over the last 15-20 years, this statistic leads to the question “How can the Democrats make college more affordable to prevent older workers from working for nothing?”
Now, let’s coordinate this information with Bush’s record of job creation to see if anything interesting turns up.
The Bureau of Economic Analysis provides statistics though 2003 of the number of jobs created in various industries. Regrettably, they have not updated their information to 2004.
First, 59% of minimum wage jobs are in the “Food Preparation and serving related occupations.” In other words, fast food doesn’t pay that well. Now, according to the BEA the economy had a net loss of 1.8 million jobs from 2000-2003. There were only three areas of the economy that experienced job growth: government employees, health care and social assistance and food services and drinking places, which had a net growth of 465,000 jobs. So, the Bush economy gives the phrase “You want fries with that?” a whole new meaning.
To sum up, we have learned three things: First, too many older people make minimum wage. Secondly, stay in school. Third, Bush must be having secret talks with the executives of Yum brands and McDonalds.