October 23. 2002
Page A4
O pinion
The Portland Observer
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Charles H. Washington
C » E A TI V E
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d it o
D lI t e r D I
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l)i ST » i » v t i o n M a n
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a g e
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Some banks still have hidden
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• I
It is time to raise the Oregon minimum wage
Card and Alan Krueger, showed that raising
J eff T hompson
If the polling is accurate, on Nov. 5 Orego the federal minimum wage in the early 1990s
nians will vote by a sizeable majority to did not result in adverse effects on employ
increase the minimum wage to $6.90 and ment. The idea that we shouldn’t raise the
wages of very low paid workers because of
index it to inflation thereafter.
Voters should rest easy knowing that their a slow economy is not supported.
Still weaker is the notion that Oregon’s
vote to raise the minimum wage will not,
contrary to claims made by the opposition, relatively high unemployment rate is related
harm Oregon’s anemic economic recovery. to the current minimum wage. Anybody
As the Oregonian recently noted, voters making even a meager attempt to track
“don’t seem swayed” by the opposition’s Oregon’s economy knows that the workers
story of job loss and economic ruin. Why is who have lost their jobs are concentrated in
that? The opposition case is unpersuasive durable manufacturing, high-tech, construc
because Oregonians have seen first hand that tion, and related service industries - not ex
minimum wage increases do not cause job actly folks getting paid the minimum wage or
losses, whether the economy is good or bad. even close to it.
The chief industry affected
Voters are intelligent enough w ------------- ------------------
by a m inimum wage in
to know that the states’ cur
crease, restaurants, is cur
rent high unemployment rate
rently one o f the fastest-
has nothing to do with the
growing, adding more jobs
minimum wage. Economic
than any other industry in
research on minimum wage
Oregon, up 3,200 from a year
increases repeatedly finds
ago.
that their impact on jobs
Restaurant ow ners op
ranges between slightly nega
pose the minimum wage be
tive to slightly positive, but
cause they don’t want to have
centers on “zero,” as recently
w
to pay their workers higher
summarized by labor econo
wages. This, however, is the
mist Jared Bernstein.
crux
of
the
issue.
Owners want the freedom
Oregonians will recall the “sky is falling”
claims of the opponents of the last minimum to be able to pay as little as they can get away
wage increase, and know that they did not with. Oregon voters, however, have said that
come true. Repeated examination has failed there should be minimally acceptable pay
to yield evidence of jobs losses from the last standards for workers. And now, as the value
time Oregonians voted to increase the mini of the minimum wage has been eroded by
inflation, it is time to raise it again.
mum wage.
The opponents of the minimum wage op
Why would it be different this time? “It’s
the recession,” opponents scream. Those pose it in good economic times and bad. They
with longer memories will recall that the oppose it despite the lack of evidence of job
Oregon and the Federal minimum wages loss. Support or opposition to increasing the
were raised during the recession of the early minimum wage is not about economics, but
1990s, doing little to impede the long eco rather basic values. And, on this issue, Or
nomic expansion that followed. Between 1989 egon voters have repeatedly made it clear
and 1999, Oregon’s minimum wage rose five where they stand.
Jeff Thompson is a labor economist and
times, and the state added 385,000 jobs,
policy analyst with the Oregon Center for
growing 3.2 percent annually.
Research by two of the country’s top Public Policy. He can be reached by e-
minimum wage experts, economists David mail at jthompson@ocpp.org.
by
* Owners want
the freedom to
be able to pay
as little as they
can get away
with.
■ ?
-
Promoting Basic Values
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Supporting Minority Business
As the nation celebrates Minority Enterprise Development Week
it is important to recognize those local agencies and programs that
have been developed to support businesses owned by people of
color. This region has a small but growing population of people of
color who wish to participate in the economic base.
We appreciate those public agencies that have been taken a
leadership role in developing programs that provide access and
assistance to us.
Two local programs have really risen to the occasion, the
Sheltered Market Program operated by the City of Portland and the
1-877-270-.ST0P
Mentor/Protdgd Program operated by the Port of Portland. These
programs are designed to meet the needs of small businesses. Both
focus on building capacity and teaching skills necessary to run a
profitable business.
The Sheltered Market Program, developed by the city and used
by the Portland Development Commission and Multnomah County,
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provides access to smaller construction projects and technical
assistance. The Mentor/Prot^ge program provides for direct assis
tance from prime contractors who volunteer their time to work with
the small contractors providing the benefit of their experience and
expertise.
We believe these programs are instrumental in moving small
business in the direction of profitability and sustainability.
We want to take this opportunity to thank the City of Portland and
the Port of Portland for their efforts to create a fair and level playing
XfDHS
Oregon Department
of Human Services
O regon Tobacco Prevention & Education Program
field and to include all segments of the population in their contracting
www.healthoregon.org/tobacco
1-877-2N0-FUME (Spanish) TTY: 1-877-777-6534
activities.
Maurice Rahming, president, O'Neil Electric Inc.
Rhonda Herschell, president, Cherokee General Corp.
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