On average, CEOs of fast food restaurant chains make $25,000 every day. That’s more than twice what fast food workers who are given New York state’s minimum wage make in an entire year. In the same time that CEOs make $25,000, workers in their restaurants bring in just $56.

Fast Food Forward is paying attention. “While fast food corporations reap the benefits of record profits, workers are barely getting by – many are forced to be on public assistance despite having a job,” the organization observes. Fast Food Forward is doing more than just talking, though. The group is working to organize workers in fast food restaurants, bringing their voices together so that they can obtain an income that’s closer to what they deserve.

Don’t you think the CEOs can afford it?

The Fair Minimum Wage Act of 2013 (H.R. 1010 in the House and S. 460 in the Senate) is a bill that would increase the minimum wage from its current $7.25/hour to $10.10/hour over the next two years. After that point, the minimum wage would automatically increase to keep pace with inflation — the tendency of currency to be worth less as time passes. Tracked by the Consumer Price Index, inflation means that what a $1 dollar bought in January 1977 would take $4 to buy now. Sure, the minimum wage was “just” $2.30 back in January 1977, but what $2.30 could buy in January 1997 would take more than $9 to buy today. Because the minimum wage is $7.25, economists say that the minimum wage has declined in “real value” between 1977 and today.

1977 didn’t even mark the high point for the U.S. minimum wage in real value; the minimum wage reached its peak in 1968, when workers were guaranteed a wage that would buy what $10.67 would buy today. The following graph summarizes Consumer Price Index data from the Bureau of Labor Statistics to show how the real value of the minimum wage has fallen since then.

U.S. Minimum Wage in Nominal and Real Dollars, through February 2013

Despite support by 162 members of the House and Senate, leadership of the 113th Congress has allowed these bills to languish in committee. Meanwhile, the real value of the minimum wage continues to fall. In January and February of 2013, the real value of the minimum wage dropped 8 cents an hour from its 2012 average. That may not sound like much to you if you have a high-paying job, but for someone on minimum wage that’s a drop of more than 1% in pay over just two months. Over a 40-hour work week, that drop means a minimum wage worker lost the ability to buy one inexpensive breakfast. By April, another meal will be out of reach. When will Congress act?

P.S. Before someone says that American business can’t afford to pay its workers, consider this: while America’s minimum-wage workers lost their breakfast, corporate profits soared. The latest available report from the Bureau of Economic Analysis reveals that in the 3rd quarter of 2012, corporate profits rose by 7.5%, a gain of $45.7 billion.

In his 2013 State of the Union address, President Barack Obama called for a restoration in the minimum wage and a change to make it keep pace with inflation:

"We know our economy is stronger when we reward an honest day's work with honest wages. But today, a full-time worker making the minimum wage earns $14,500 a year. Even with the tax relief we put in place, a family with two kids that earns the minimum wage still lives below the poverty line. That's wrong. That's why, since the last time this Congress raised the minimum wage, 19 states have chosen to bump theirs even higher.

Tonight, let’s declare that in the wealthiest nation on Earth, no one who works full-time should have to live in poverty, and raise the federal minimum wage to $9.00 an hour. We should be able to get that done.

This single step would raise the incomes of millions of working families. It could mean the difference between groceries or the food bank; rent or eviction; scraping by or finally getting ahead. For businesses across the country, it would mean customers with more money in their pockets. And a whole lot of folks out there would probably need less help from government. In fact, working folks shouldn't have to wait year after year for the minimum wage to go up while CEO pay has never been higher. So here’s an idea that Governor Romney and I actually agreed on last year -- let's tie the minimum wage to the cost of living, so that it finally becomes a wage you can live on."

Should the minimum wage for workers be at least what it was in 1980, or should cuts to the minimum wage be allowed to continue? That’s the real question, and I don’t use the word “real” lightly. The problem with tracking the minimum wage at its “nominal” dollar value is that a dollar in 2012 didn’t buy as much as a dollar did in 1980. As a matter of fact, according to the Consumer Price Index a dollar in 2012 only buys what 36 cents would have bought in 1980. In the chart of minimum wage trends in the United States you see below, “real” wages adjust for this change by measuring wages according to what they’d be worth in 2012 dollars. As you can see, around 1980 the inflation-adjusted minimum wage was about $9, but has fallen since then.

Real and Nominal Minimum Wage Trend in the United States, 1956 to 2012

Some people in Congress, mostly Republicans, are arguing that our nation’s big corporations just can’t afford to pay full-time working people what they were paid in 1980.

Problem #1 with the Republican story: corporate profits hit a record high in 2012.

Problem #2 with the Republican story: corporations have found enough room to pay their executives. Here’s a graph of real and nominal CEO pay over the same period (data: EPI)

Real and Nominal Corporate CEO Pay, EPI Data, to 2011

The Magnificent Mile in Chicago is a stretch of posh streetside shops, selling clothes at high prices, paying landlords for top-priced commercial real estate. There’s a lot of money being spent on this part of Michigan Avenue, and a lot of money being made, but the people working behind the counters aren’t seeing much benefit.

The average retail and restaurant worker on the Magnificent Mile makes less than $10 per hour. That isn’t magnificent. It’s monstrous for the well off to bask in front of people who don’t make a living wage.

chicago magnificent mile liveable wage protest

That’s why the Workers Organizing Committee of Chicago organized a street protest along Michigan Avenue this week on the theme of Fight For Fifteen – a wage of fifteen dollars per hour. Chanting slogans like “Hold your burgers, hold your fries, make our wages supersize,” and “We can’t survive on $8.25,” they performed a Magnificent March, and dropped giant banner from the side of the Water Tower Place shopping mall and inside Forever 21, a clothing store for the young and privileged.

The independent expenditure system set up under the Supreme Court’s Citizens United ruling that allows for unlimited campaign spending from secretive sources has very thin disclosure standards. Still, there are a few pieces of data that we can work with to come up with information about the so-called “Super” PACs that exploit the independent expenditure system.

Let’s take the recent phone bank operations of a Super PAC called Concerned American Voters in Michigan.

A couple of days ago, the Super PAC reported to the Federal Election Commission a $250 payment to a particular restaurant for lunch for phone bank workers being paid to making calls promoting Republican congressional candidate Kerry Bentivolio. The restaurant that sold the lunch happens to have a menu with prices online. So, if we take the most expensive lunch available from the particular restaurant, we can calculate the minimum staff size for the phone bank.

Of course, it’s more likely the Super PAC is pinching pennies, and didn’t buy the most expensive sandwich plus the most expensive drink, plus the biggest side item, plus desert for those phone bank workers. But, let’s say it did. That comes to, at smallest, 27 meals for 27 workers.

paying workers low wagesWe also know, because of another report to the FEC from Concerned American Voters, that the combined salary the Super PAC for one session of four days’ work for that particular phone bank was $3469.65.

So, even if those four days of work took place with just four hours per day, then Concerned American Voters would have been paying your workers only around $8.00 an hour, just a few coins above the Michigan state minimum wage of $7.40 per hour. It’s certainly not a living wage… and that’s not taking into account that $755.50 of this $3469.65 was for “full time” staff. That would make the wages of the part time staff even lower, given that the full time staff was certainly being paid for more than four hours of work per day. And remember, we’re making the assumption that Concerned American Voters spent a maximum possible amount of money for each lunch, leading to indications of a smaller number of workers. It’s more likely that the number of workers was higher than 27, making the wages even lower.

We also see that there was a one-day total salary payment of $1028.52 for the same phone bank operation, shown in a third FEC report. With 27 workers, that comes out to $38.09 for the day. Do you know anyone who can live on that?

The essential insight gained from this exercise is that the Concerned American Voters Super PAC looks at American workers as a relatively worthless group of people. The economic vision of Concerned American Voters is disturbingly unconcerned with the economic realities Americans are dealing with right now. The Super PAC is operating with the attitude that it will get as much labor from its workers as possible, paying them as little as it can get away with.

That kind of disrespect for working Americans isn’t a quality I’d want to see in the United States Congress. That’s why, I’m hoping that the people of Michigan’s 11th congressional district will vote against Kerry Bentivolio. His association with low wages doesn’t suggest positive things about his economic agenda.

When Rep. Chellie Pingree wrote a letter to the Obama administration in favor of preserving Medicaid benefits for residents of her home state of Maine, Maine Governor Paul LePage blasted Pingree for “interference,” demanded that Medicaid benefits for Mainers be cut, and further declared:

It appears that you have become part of the jet-setting Washington culture that keeps people dependent on government handouts. Your efforts should instead be focused on the Maine people, helping my administration create the well-paying careers that will let Mainers earn their own way and create prosperity for themselves.

To be “dependent” is to rely on others for support. In the case of Medicaid, people are dependent upon its provisions when they cannot buy health insurance themselves. Policies that “keep people dependent” on government for health care are policies that make health care unaffordable.

In March 2011, Governor Paul LePage rejected efforts to have Maine’s minimum wage keep pace with inflation, instead favoring a plan that would let the minimum wage go down in inflation-adjusted terms.

In April 2011, Governor Paul LePage advocated cutting the minimum wage even further for young people, down to roughly $5 an hour.

The minimum wage policies Paul LePage advocates do not “create the well-paying careers” LePage advocated in his letter, unless you take into account the careers of corporate executives who get paid million-dollar bonuses when the wages of everyday workers go down. If enacted, LePage’s minimum wage policies would result in a class of workers who cannot afford health care on their own (even paying the rent is a problem at minimum wage).

LePage’s own low-wage ideology creates a choice: either the government must step in to cover the health care costs of people who cannot afford health care on their own, or minimum-wage workers simply will not get care when they’re sick. When Paul LePage simultaneously tries to push down the minimum wage and reduce Medicaid coverage, his choice is to let poor people who get sick stay sick, get sicker, and die.

Boston Globe Columnist Jeff Jacoby, September 2011: social security and medicare, which provide income and health care for retirees after a lifetime of work, are programs that are too big and should be cut

Jeff Jacoby, March 2012: forget health insurance; workers should pay for health care in cash.

Jeff Jacoby, June 2012: make it against the law for workers to band together and bargain with employers on wages

Jeff Jacoby, June 2012: let cost of health care prices rise, beyond what low-wage workers can afford

Jeff Jacoby, July 2012: end minimum wages: Americans will work full-time and earn less, and they won’t be able to pay for health care or retirement, but at least they’ll have a job and do work, generating corporate profit.

Jeff Jacoby, September 2011: rich people are being victimized by having to pay taxes

Afflicting the afflicted, comforting the comfortable.

Two dollars and thirteen cents an hour. That’s how much restaurants are allowed to pay people who wait tables. That restaurant worker minimum wage has not been raised in over two decades.

The rationale for this absurdly low rate of pay is that wait staff receive tips from customers. Often, they do, but sometimes they don’t. In some restaurants, tips are low because food prices are low. In other restaurants, slow business means that employees who wait tables could bring home less than 20 dollars for an entire shift.

Today in Washington D.C., Restaurant Opportunity Centers United is holding a protest at the corner of 17th Street and M Street, demanding that Congress raise the minimum wage for restaurant employees who depend on tips. The protest starts at 11:00 AM.

Green Party presidential candidate Jill Stein will be joining the protest. She points out, “Despite employing more than 10 million workers and producing more than $1.7 trillion in revenue each year, the United States restaurant industry is less than 1% unionized.”

In another move to support workers, Stein is organizing opposition to the new Colombia Free Trade Agreement, which is supported by both Mitt Romney and Barack Obama. Stein said of the agreement yesterday, “It’s a deadly assault on the freedom of Colombian workers to organize, as well as on the freedom of American workers from unfair competition from workers who make poverty wages because they are violently repressed… Let’s first see the murders stopped, the death squads prosecuted and convicted, the unions organized, and decent union contracts signed with the companies. Then we can talk about reducing trade barriers with Colombia… This trade pact is a jobs export pact.”