Contemplating Wealth

I just spent a week in Mexico at an all-inclusive resort. I made it through most of the week without thinking about anything except the book I was reading. Those thoughtless moments never seem to last long. By the end of the week, I was back in my processing/thinking/pondering mode. Yes, we had gotten a good deal on an all-inclusive resort...but the bottom line was that I was still spending a lot of money on myself. I tried to think about the fact that Mexico survives on tourism and me spending money there employs quite a few people. That is a true fact. However, I also thought about how much money I spend on myself and how little so many other people make who will never be able to enjoy the luxuries I do.

As I talked to our shuttle driver on the way back to the airport, he explained minimum wage in Mexico. He told me their minimum wage is per day. If you work an eight-hour day, you make $55 pesos. During spring break months (February-March), when he is working 14-16 hours a day, six days/week, they receive $110 pesos/day. I guess that's something like time and a half...except he's not just working 12 hours/day like he explained to me, he may work up to 16! While we were in Mexico, the exchange rate was $12.70. That's $4.33/day...or $8.66/day during the three high season months of spring break! That boggled my mind so I looked it up to make sure I understood him correctly. Yep. Here it is: http://en.wikipedia.org/wiki/List_of_minimum_wages_by_country

A friend of mine suggested maybe that smaller minimum wage was kind of ok because things are cheaper in Mexico. Maybe it's possible to rationalize that but with the amount we had to spend on things, I can't see it. My chair hammock cost me $20. I looked it up online and it would cost $77 here. So, yes, that's a lot cheaper...for me. My guess is it's the tourists and not the locals who are buying hammocks though. I also went out to eat at a local restaurant off the beaten path (not in the tourist area at all). Our meal cost about $30 (USD) for three of us (with tip). We each had a regular plate of food and a soda (one person had a beer instead of a soda). For someone in Mexico, that one meal would be two and a half days of work!

I mentioned the Mexican minimum wage to a friend of mine. He was just as baffled as I was. He said he wished more people realized how minuscule their wages are. He believed if they did, they would tip more. I'm not so sure. When I was in college, I took a mission trip to Africa. I remember the missionaries there telling us, "People only make about 75 cents/day so when you go to the market, don't let them fool you and talk you into paying more." It made sense to me at the time. I guess the rationale was to not throw the economy off by doing something like tripling or quadrupling someone's wage or lifestyle by being a clueless American tourist. I'm not so sure that rationale makes sense to me now. Why not pay for the services rendered and tip them adequately and why barter them down to nothing since they're barely surviving anyway? Why is the goal, in a third world or lower income country, for us to see how low we can bargain people down on their prices when the price is already cheap for us anyway?

When someone is making $4.33/day in a country we don't consider third world, is it any wonder why they might want to cross the border and hopefully do better for their family? Is it any wonder why Mexican people are willing to work the jobs no one else does in our country...even if they were engineers, attorneys, and business owners in their own country? We are willing to take advantage of what they offer us in their country. Why aren't we willing to return that favor by welcoming them into ours? It seems like a double standard to me.

Pay increases...Unrealistic or just unwilling?

I had been toying with the idea of writing a blog about the Janitor's strike in Houston, but Larry James beat me to it.

As usual, his post makes some great points and challenges us to connect our actions with our faith. What I also think is interesting are the passionate comments that go along with his post. It always amazes me how upset people get when someone mentions equality for the poor or talks about raising the minimum wage. If that defensiveness wasn't so troubling, it would be almost humorous.

After I read the article on the janitor's strike I began doing a little research in hopes of understanding how much money the executives of the companies utilizing the janitorial services make. The vice president of the Hines company said he “was supportive of health insurance and higher pay for janitorial workers.” I didn't see where it said he was willing to shell out more money to the janitorial services so that they can, in turn, offer increases in pay and health insurance. The cleaning companies say, "the proposal for a 62 percent increase [from $5.25 to $8.50/hour], along with health insurance, is unrealistic."

Considering they only work 4 1/2 hours a day, this amounts to an extra $74.75/week or $3887/year. That's really not much considering Texaco's CEO is making $3.4 million along with $2.8 million of stock options (that information is before the merger with Chevron...I'm sure the salary is higher now). The company itself is bringing in a total revenue of $36.6 billion and a net revenue of $2.1 billion. Is it really "unrealistic" for that corporation to pay more for a cleaning service that I'm sure they couldn't do without? I seriously doubt those executives would want to clean their own offices every evening.

Isn't capitalism based on supply and demand? And don't we pay more for items where demand is high? It seems to me that cleaning offices (or homes or streets or whatever) would justify a higher pay scale because there is a demand...especially these days when people are making so much money and don't choose to clean things themselves. Why do we feel the need to relegate someone to poverty because of a job that we see as "less than" when the services they offer are something we have no desire to live without? Mind you, these workers are not asking for $3.4 million annually. Just a simple $3000-$4000 a year.

So, to all of those corporate executives out there, go ahead and say you don't want to give janitors or cleaning people any more money, but don't tell us there isn't enough money to do it. That argument doesn't hold any water, is somewhat irritating, and, frankly, I feel like it insults our intelligence considering how much money is going in to those companies and how little is trickling down to the "bottom."

I'm glad they are organizing and I hope they can hold their ground until someone takes notice and realizes they are deserving people, too.

Way to go, Chicago!

At least one city is doing something about Congress's lack of compassion and response to raising the minimum wage (while granting themselves a higher salary). Chicago's city council has passed an ordinance that requires big retailers (like Wal-mart and Home Depot) to ultimately pay a minimum of $10/hour plus $3/hour worth of beneifts to their employees by 2010 and then it would be indexed for inflation after that (it would start out with $9.25 per hour and $1.50 per hour in benefits by 2007). It still only amounts to $20,800 before taxes, but it's much better than $5.25/hour. Of course, all of this depends on if the mayor vetoes or not...and he hasn't decided just yet.

What makes no sense to me is why these large businesses get so upset about things like this. I gather it is because raising someone's less-than-poverty wage might shave a little off of their billions of dollars of profit each year. How can we, who are making so much more money, be so offended by taking a couple of thousand dollars off of our much larger salaries? We aren't talking about people who are sitting around sponging off the "system." We are talking about people who are working 40 hours a week (and sometimes holding down second jobs) just to make ends meet. Yet, because they don't make enough money, they are having to utilize the system! ...at no fault of their own!! It refutes the age-old "poor people are lazy" mantra so many like to profess.

I say AMEN to Chicago's big company policy. I hope others (including Congress) follow suit! Other research (Florida just raised their minimum wage) shows that raising the minimum wage does not hurt people like everyone claims. In fact, it helps the economy because it gives people more money to spend!

Please think about this as you talk to your friends, neighbors, and legislators today.

Note to the above graphic: Currently, it would take $9.28/hour for a family of four to break even with the poverty line. Even then, the family of four would only be making $19,307 per year.

Struggles of minimum wage

Have you ever thought about trying to raise your family on $10,712 per year...or $21,424 if there are two adults in the home and both are working? That's what minimum wage ($5.15/hour) would get someone if they were working a full 40 hours a week with absolutely no vacation days for the whole 52 weeks out of the year! Granted, many jobs pay a whopping $6 or $7 per hour so that would up that number a little. Of course, those are gross numbers...before taxes have been taken out.

As a single person with no dependents, I can't imagine living on $10, 712 per year! Although I wouldn't claim to be the most frugal person when it comes to spending money, I'm not overly extravagant either. Minimum wage amounts to $892.67/mo. When I was living in my very cheap (comparatively speaking) apartment complex that offered "all bills paid" and where many people I know didn't want visit, let alone live (I would argue that I enjoyed my neighbors and loved where I lived...but that is beside the point.), my rent was $575 for a 2-bedroom apartment. That's 64% of a person's minimum wage income! And that was three years ago! I am almost sure rent in my old apartments has gone up since then. Unfortunately, though, while rent and other prices increase, minimum wage has not. Deducting rent from what someone on minimum wage would make leaves $317.67 for the whole month to buy groceries, household items, personal hygeine items, clothes, gas or bus passes, car payment (if you have a car), pay tithes, child care...forget the entertainment or any kind of luxuries!!

Check out this website to gain an understanding of the difficult choices people are forced to make because of these low wages.

The laws that are being made (or, in the case of the Congress, the laws that aren't being passed) at the expense of someone else make me think a little differently when I begin putting myself in that position and wonder how I would live...knowing I'm working hard just like the rest of the population!

Minimum Wage

I'm in the middle of Urban Experience this week and don't have much time. But I think Larry James' post yesterday is an amazing post that should be read and taken to heart by all of us.

Click here to read Larry's blog on the benefits of raising minimum wage.

Welfare checks for wealthy people???

"Nationwide, the federal government has paid at least $1.3 billion in subsidies for rice and other crops since 2000 to individuals who do no farming at all..."

Does this sound absurd to anyone but me and the Washington Post (click on the blog title to link to the article)?

Now I know there may be two sides to the story. My dad's a farmer. As far as I know, he doesn't rake in thousands of dollars every year because he no longer farms, but he may have a different opinion than I do about this article. Maybe there's good reason to give away billions of dollars to people who are doctors, large business owners, and other wealthy people who have never farmed a day in their life. On a less cynical note, I would guess that there are actually some people in this program who do need and deserve the subsidies. My problem is with those who don't yet still reap the benefits because of the plot of land they chose to buy.

In the days of cutting miniscule social services for poor people while cutting taxes for those in the upper tax brackets. In the days of voting not to raise minimum wage while voting to increase the salary of Congress, I shake my head. I do not understand why the low-income group is disparaged about taking government money, while the high-income group is graciously given money for doing less than nothing. The farm subsidies, from what I read, will not allow them to develop their land. So they are getting free money to play with and develop other interests. Why isn't anyone complaining about the wealthy, non-farmer's "welfare" checks?

Jon Stewart had a great segment about the minimum wage. Go to this link and click on the video entitled "Minimum Wage."

Our current administration is adamant about Christianity and having good values and morals. Perhaps they're overlooking all of the scriptures on how to treat the poor. Read below and see what you think.

But the Master said to him, "I know you Pharisees burnish the surface of your cups and plates so they sparkle in the sun, but I also know your insides are maggoty with greed and secret evil. Stupid Pharisees! Didn't the One who made the outside also make the inside? Turn both your pockets and your hearts inside out and give generously to the poor; then your lives will be clean, not just your dishes and your hands."
Lk. 11:39-41 The Message

My brothers, as believers in our glorious Lord Jesus Christ, don’t show favouritism.
Suppose a man comes into your meeting wearing a gold ring and fine clothes, and a poor man in shabby clothes also comes in.
If you show special attention to the man wearing fine clothes and say, “Here’s a good seat for you,” but say to the poor man, “You stand there” or “Sit on the floor by my feet,” have you not discriminated among yourselves and become judges with evil thoughts?
James 2:1-4

"Among my people are wicked men who lie in wait like men who snare birds and like those who set traps to catch men. Like cages full of birds, their houses are full of deceit; they have become rich and powerful and have grown fat and sleek. Their evil deeds have no limit; they do not plead the case of the fatherless to win it, they do not defend the rights of the poor. Should I not punish them for this?” declares the LORD. “Should I not avenge myself on such a nation as this?"
Jeremiah 5:26-29

Woe to those who make unjust laws, to those who issue oppressive decrees, to deprive the poor of their rights and withhold justice from the oppressed of my people, making widows their prey and robbing the fatherless.
Isaiah 10:1-3

The righteous care about justice for the poor, but the wicked have no such concern.
Proverbs 29:7