Missouri’s largest organization representing the interests and concerns of senior citizens today announced that it is endorsing Proposition B, an initiative that will raise Missouri’s minimum wage from $5.15 to $6.50 an hour. AARP Missouri notes that the increase will help thousands of Missourians over the age of 50 who are struggling to make ends meet.
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According to the non-partisan Economic Policy Institute (EPI), an estimated 43,000 Missourians over the age of 50 would stand to receive a raise in their pay if Proposition B is approved by voters. This includes people over 50 who currently earn less than $6.50 an hour, as well as those who make slightly more than $6.50, but who would see a bump in their pay due to the "spillover" effect. Overall, approximately 256,000 total Missourians would benefit if the minimum wage increase passes. (EPI, June 2006) "These days, the daily necessities that Missouri seniors depend on – food, clothing, prescription medications – they all cost more," said AARP Missouri Associate State Director for Advocacy Norma Collins. "Raising the minimum wage is a long overdue step that is going to help thousands of Missourians afford the things they need every day."
Because of cost of living increases, economists have calculated that the current minimum wage is at its lowest value in over 51 years. The cost of everything keeps going up, draining the minimum wage of its purchasing power. In other words, the real value of the $5.15 minimum wage is more like $4 per hour. (Economic Policy Institute, Center on Budget Policy and Priorities, 6/20/06; Springfield News-Leader, 7/24/06) "As the cost of living increases, fewer people are able to survive on Social Security and retirement accounts alone, and more seniors are being forced to seek low-wage jobs just to pay the bills," said Collins. "It’s been nearly 10 years since the last time the minimum wage was increased, and these workers are long overdue for a raise."
The minimum was last increased in 1996, when Congress voted to raise the wage to $5.15 an hour. Since then, 22 states and the District of Columbia have chosen to raise their state minimum wage. If approved by voters, Proposition B will raise the Missouri minimum wage to $6.50 an hour, tying the rate to the cost of living. Proposition B was approved for the ballot earlier this month, and will appear on the Nov. 7 ballot.