A few days ago I came across what seemed like just one more preposterous claim littering our political landscape: that Australia has a minimum wage exceeding $15 American dollars per hour and an unemployment rate of about 5%. The stunning thing is that when I checked this one out I found that it is true. For me, that raised the questions, “How did they do that?” and “Could we do it too?” This column is about some of the answers that I found.
Australia’s achievement is not unique. There are 9 substantial nations with minimum wages higher than ours: Australia, France, Belgium, New Zealand, Ireland, Netherlands, United Kingdom, Canada, and Japan. Five of the nine have lower unemployment rates than the United States. They did not achieve this by running up their national debt. Of the nine, only Japan has a ratio of debt to GDP higher than the US. All the rest have less debt in proportion to their economic output. And although each of the nations is unique, they all have a stronger social safety net for human services than the US.
In my search for answers, I found that how they did it was not particularly relevant. They each found their own ways. The thing that distinguishes them is that they chose to do it. We have not made that commitment.
If we’re missing something, what is it? The surprising answer to that question may be that we are lacking Christian social values. When that thought occurred to me, I re-read Pope John Paul II’s “Encyclical on Work” which was published in 1981. While reading it, I recalled that Dr. Martin Luther King, Jr. was assassinated in Memphis while leading a campaign for economic justice. His concern about income inequality shaped his message that work must be respected with a fair and living wage. He famously said, “On the one hand we are called to play the good Samaritan on life’s roadside; but that will be only an initial act. One day we must come to see that the whole Jericho road must be transformed so that men and women will not be constantly beaten and robbed as they make their journey on life’s highway. True compassion is more than flinging a coin to a beggar; it is not haphazard and superficial. It comes to see that an edifice which produces beggars needs restructuring.”
Returning to the Encyclical I read that, “Work is a good thing for man-a good thing for his humanity-because through work man not only transforms nature, adapting it to his own needs, but he also achieves fulfillment as a human being and indeed, in a sense, becomes ‘more a human being’. … The key problem of social ethics in this case is that of just remuneration for work done. … Just remuneration for the work of an adult who is responsible for a family means remuneration which will suffice for establishing and properly maintaining a family and for providing security for its future.” He goes on to argue that the work of one adult should be sufficient to support a family and that society will suffer if children get inadequate nurture because both parents are working. Regarding the unemployed he added, “The obligation to provide unemployment benefits, that is to say, the duty to make suitable grants indispensable for the subsistence of unemployed workers and their families, is a duty springing from the fundamental principle of the moral order in this sphere, namely the principle of the common use of goods or, to put it in another and still simpler way, the right to life and subsistence.”
In my community the wages paid to a paramedic working full time and supporting a family qualifies the family for food stamps. Here in North Carolina, that is true for many hard working people in both the public and private sectors. I can only imagine the impossibility of supporting a family in any of our 50 states on a minimum wage job or “temp” employment with no benefits.
The other nations that I listed are providing a safety net for the unemployed and they have decided that anyone who is employed merits a living wage. Those nations have better overall school performance because fewer of their students live in poverty. For the same reason, they all have fewer of their number in prison. Too many of our underpaid and unemployed are unable to participate in our economy by earning or learning or spending. That brings up an important business lesson: It is easier to make a profit if your customers have money to spend.
All of this leads me to believe that the Christian social values taught by Pope John Paul II and Dr. King have merit; and if we adopt them we will find our communities, states and nation to be better and more prosperous places to live. Like the Australians, our choice will be driven by our values.