Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, August 20, 1993 TAG: 9308200097
SECTION: NATIONAL/INTERNATIONAL PAGE: A-1 EDITION: METRO
SOURCE: Associated Press
DATELINE: WASHINGTON LENGTH: Medium
In a memo to President Clinton, Reich said raising the minimum by nearly 6 percent, from $4.25 to $4.50 an hour, and then ensuring it would rise along with inflation "is a minimum prerequisite to reaching the goal of lifting families of four with full-time workers out of poverty."
"If the minimum wage is not indexed, or if it is indexed at a lower level, the goal will not be achieved," the secretary wrote.
If the minimum wage were "indexed" to inflation, it would automatically rise each year. Congressional approval now is required for any increase.
Roanoke-area economists downplayed the news, saying that a small portion of the metropolitan area's work force is paid the minimum wage. Also, any effects of a higher minimum wage would be short-term.
"An increase tends to raise the wages of all workers up and down the scale," said Virgil Thompson, a jobs service supervisor with the Virginia Employment Commission's Roanoke office.
"The second effect is that it will cause some unemployment - of people working at minimum wage . . . but that's usually short-term," he said.
Clinton advocated both a higher minimum wage and indexing during the presidential campaign, but administration attention so far this year has been on other issues including deficit reduction and health-care changes.
The existence of the July 20 memo first was reported by The Wall Street Journal on Aug. 12. A copy was made available Thursday by the Employment Policies Institute, which opposes any increase or indexing.
Staff writer Michael Csollany contributed to this story.
by CNB