The high cost of low wages

wages


wages

There has been plenty of talk these past few days on how many jobs in our state and across the country simply do not pay enough. This was put into focus on a very stark, glaring way when one Wal-Mart in Ohio hosted a food drive for its own employees, seemingly oblivious to the fact that they needed this sort of charity because Wal-Mart is not paying them a living wage on the first place. That coming from a company that is spending $7.6 billion a year repurchasing its own stock to prop up share prices and make stock holders happy.

 

Leaving food drives aside, these low wages are also a drag on public budgets. Wal-Mart, as many other big employers, not only do not pay much to their workers, but also encourage them to apply for public benefits to fill the gap. Instead of offering a living wage, their workforce is forced to rely on SNAP (Food Stamps). Instead of providing health insurance, workers have to rely on Medicaid or Husky.  As a result, a two-income working class family in Connecticut can end up receiving almost as much money in public, taxpayer-funded benefits as they receive in wages.

In our new policy brief, we have a look at the data to see who are these workers, and what is the cost for the state's budget. You can download the policy brief here. Worker's share of the national income pay has been steadily dropping for the past two decades. It is time to change this.

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