It's obvious, now that you mention it
More from the Good Jobs First conference in Baltimore.
The whole point of economic development subsidy programs is to create good-paying jobs that a worker can support his or her family on. At least that's supposed to be the point.
Several speakers today pointed out that one way of creating a good-paying job is to elevate the earnings of those working low-wage jobs. Lots of people go to work every day and still live in poverty due to low wages and a lack of benefits. The challenge is to find a way to let them earn what's commonly called a "living wage."
Mary Beth Maxwell, executive director of American Rights At Work, said unions hold the key. She cited as an example, the hospitality industry, which employs some 1.3 million across the nation. Hospitality workers in cities lacking a strong labor presence make, on average, $6 per hour and rarely receive health insurance. In union towns, wages climb to as much as $19 an hour, and health insurance is more likely to be part of the compensation package.
"That sounds to me like good economic development," she said.
Another speaker discussed a successful union drive to organize 5,000 janitors in Houston. The average wage went from $5 to $8 an hour, and janitors began to get health insurance. Assuming most janitors have families, the upgrades improved the economic life of 15,000 to 20,000 people -- the size of a small town.
All without the use of government subsidies.
