During a recent talk at Northwestern’s Kellogg School of Management, McDonald’s CEO Don Thompson indicated his support for legislation in Congress to raise the federal minimum wage. “I will tell you we will support legislation that moves forward,” he said. Later in the talk, Mr. Thompson continued, “McDonald’s will be fine. We’ll manage through whatever the additional cost implications are.” It turns out that, contrary to the stale Republican talking points, one of the largest low-wage employers in the country does not have a problem with a higher minimum wage.

We have been vigorously advocating for a raise in the federal minimum wage for several years now. Much progress has been made in that time. Unfortunately, little of this progress has come in the halls of Congress, leaving cities and states across the country to do the work that our national leaders won’t do.

Twenty two states and the District of Columbia have minimum wages that are higher than the current federal minimum wage of $7.25 per hour. In 2014 alone, seven states (Connecticut ($10.10 per hour by 2017), Delaware ($8.25 per hour by 2015), Hawaii ($10.10 per hour by 2018), Maryland ($10.10 per hour by 2018), Michigan ($9.25 per hour by 2018), Minnesota ($9.50 per hour by 2016) and West Virginia ($8.75 by 2016)) plus the District of Columbia ($11.50 per hour by 2016) have signed minimum wage increases into law. And Vermont’s legislature also recently passed legislation to raise their minimum wage to $10.50 by 2018, but it awaits action from Governor Peter Shumlin. Many cities have also decided not to wait on Washington: Seattle ($15 per hour by 2017), San Francisco ($10.74 per hour), Santa Fe ($10.66 per hour), and San Jose ($10.15 per hour) have all passed increases in their local minimum wage.

Supporting this action at the state and local level, poll after poll has shown that a vast majority of Americans — 70 to 80 percent — support an increase in the minimum wage. So why hasn’t Congress taken the hint?

Only recently have Democrats gotten serious about the issue and pushed for a vote on legislation in both houses of Congress for a $10.10 per hour minimum wage phased in by 2016. In March in the House of Representatives, Democrats proposed an amendment to a bill which would have raised the federal minimum wage. Republicans in the House voted the measure down unanimously. On April 30, the Senate tried to bring legislation raising the federal minimum wage to a vote. Yet again, Republicans stood in the way and threatened to filibuster, leaving the Democrats short of the 60 votes required to defeat a filibuster.

But in the days that followed the Senate vote, it became clear that the Republican Party’s opposition to a federal minimum wage increase was not shared by some of its leaders. In May, Tim Pawlenty, Rick Santorum, and Mitt Romney all called on the Republican Party to support an increase to the minimum wage.

Republican corporatists’ worn-out and cruel arguments against raising the minimum wage haven’t changed for decades. This despite the fact that the federal minimum wage has been raised numerous times since it was first established in 1938, never being followed by the disastrous consequences and falsehoods peddled by its opponents. Yet, time and again the same opponents roll out their unchanged “sky is falling” predictions and do their best to impersonate Chicken Little.

As if it weren’t enough that some of the Republican Party’s leaders were breaking with the party on this issue, now their loudest talking point is being undermined by the very people the Republican Party pretends to speak for in its opposition to raising the minimum wage: businesses and large corporations. McDonald’s CEO’s support for a higher federal minimum wage was just the latest development in what has become a steady stream of acceptance from some of the nation’s largest low-wage employers who are reading the tea leaves.

In February, Gap Inc. announced that it would raise the minimum pay for its workers to $10 per hour by next year, which would raise the pay of 65,000 of its 90,000 American employees.

In May, following the Republicans’ filibuster, Walmart and Subway indicated that they do not oppose an increase to the minimum wage. Subway’s CEO, Fred Deluca, indicated that he was “not concerned” by the prospect of an increased minimum wage and that he believed it “won’t have a negative impact.” And it was reported in the Wall Street Journal that Walmart finally has said that while a minimum wage increase would increase their labor costs, they also believe it could increase their sales (presumably by putting more money into the economy and in particular into low-wage workers’ pockets, who compose a large portion of Walmart’s customers). Also in May, Panera Bread’s CEO, Ron Shaich, indicated his support for raising the federal minimum wage. Costco already starts its workers at $11.50 per hour plus benefits.

The low wages that many of these large, profitable corporations provide doesn’t only harm low-wage workers, but they also harm all taxpayers. By paying their employees such low wages, corporations end up employing workers who can’t afford to buy food, pay the rent, or get the health care that they need. As a result, these employees end up having little choice but to turn to taxpayer-funded government safety nets for things like food stamps, Medicaid, the earned income tax credit, and housing-assistance programs. In this perversion of capitalism, taxpayers end up footing the bill for and subsidizing these large corporations’ low wages, while their CEOs make up to $12,000 per hour!

The House Education and Workforce Committee released a report last year which showed that for every Walmart Supercenter, the cost to taxpayers was between $900,000 and $1.75 million. One would think that for Republicans who generally decry government intervention, they would recognize this fact and end this thinly veiled corporate subsidy. And now, even many of these corporations are not resisting. Republicans should follow their lead.

Republican corporatists are fighting what has long been a losing battle. They should stop standing in the way of a raise for 30 million hardworking Americans who are making less today, adjusted for inflation, than they did 46 years ago. The political opponents of Republicans who don’t embrace the idea that it is “time for a raise” — whether they are Democrat, Independent, or a Republican primary challenger — should use these Republicans’ opposition to this policy against them. If Republicans want to play a game of Chicken (Little), then let them – to their own defeat!

Ralph Nader’s latest book is: Unstoppable: the Emerging Left-Right Alliance to Dismantle the Corporate State.


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Nader is opposed to big insurance companies, "corporate welfare," and the "dangerous convergence of corporate and government power." While consumer advocate/environmentalist Ralph Nader has virtually no chance of winning the White House, he has been taken quite seriously on the campaign trail.

Indeed, he poses the greatest threat to Sen. John Kerry. Democrats fear that Nader will be a spoiler, as he was in the 2000 election, when he took more than 97,000 votes in Florida. Bush won Florida by just 537 votes. The win gave Bush the election. Nader, an independent candidate, who also ran in 1992 and 1996, is on the ballot in 33 states, including Florida, Ohio, Wisconsin, and New Mexico—tough battleground states. Kerry stands a chance of losing those vital states if Nader siphons away the votes of Democrats. President Bush and Kerry have been in a statistical dead heat in nationwide polls, and votes for Nader could well tip the balance in favor of Bush.

Many Kerry supporters contend that a vote for Nader is in reality a vote for Bush and have made concerted efforts to persuade Nader to throw his support behind the Democratic candidate. Nader, however, has held fast to his convictions that the two candidates are nearly indistinguishable and are pawns of big business.

Designing Cars for Everything but Safety

Nader was born in Winsted, Connecticut, on Feb. 27, 1934 to Lebanese immigrants Nathra and Rose Nader. Nathra ran a bakery and restaurant. As a child, Ralph played with David Halberstam, who\'s now a highly regarded journalist.

Nader with Democratic nominee Jimmy Carter outside of Jimmy Carter\'s home on August 7, 1976, discussing Consumer Protection. (Source/AP)
Nader graduated magna cum laude from Princeton in 1955 and from Harvard Law School in 1958. As a student at Harvard, Nader first researched the design of automobiles. In an article titled "The Safe Car You Can\'t Buy," which appeared in the Nation in 1959, he concluded, "It is clear Detroit today is designing automobiles for style, cost, performance, and calculated obsolescence, but not—despite the 5,000,000 reported accidents, nearly 40,000 fatalities, 110,000 permanent disabilities, and 1,500,000 injuries yearly—for safety."

Early Years as a Consumer Advocate

After a stint working as a lawyer in Hartford, Connecticut, Nader headed for Washington, where he began his career as a consumer advocate. He worked for Daniel Patrick Moynihan in the Department of Labor and volunteered as an adviser to a Senate subcommittee that was studying automobile safety.

In 1965, he published Unsafe at Any Speed, a best-selling indictment of the auto industry and its poor safety standards. He specifically targeted General Motors\' Corvair. Largely because of his influence, Congress passed the 1966 National Traffic and Motor Vehicle Safety Act. Nader was also influential in the passage of 1967\'s Wholesome Meat Act, which called for federal inspections of beef and poultry and imposed standards on slaughterhouses, as well as the Clean Air Act and the Freedom of Information Act.

"Nader\'s Raiders" and Modern Consumer Movement

Nader\'s crusade caught on, and swarms of activists, called "Nader\'s Raiders," joined his modern consumer movement. They pressed for protections for workers, taxpayers, and the environment and fought to stem the power of large corporations.

In 1969 Nader established the Center for the Study of Responsive Law, which exposed corporate irresponsibility and the federal government\'s failure to enforce regulation of business. He founded Public Citizen and U.S. Public Interest Research Group in 1971, an umbrella for many other such groups.

A prolific writer, Nader\'s books include Corporate Power in America (1973), Who\'s Poisoning America (1981), and Winning the Insurance Game (1990).

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