Monday, July 30, 2007

Really, I dont Understand Sir....

I have been residing in the West for these past 8 years.
The West value freedom of speech, writing and thinking.
Where speech is FREE, opinion is valued, no matter how stupid in our views.
There is FREEDOM of expression, swear words (those words that are not nice to our hearing) are part of everyday expression and communication, even on prime time TV.

If you go to some part of the city, the residents may communicate to you in language that you might not understand..
I mean not a foreign language, but EVERY four words there shall be a swear word.
Like, "Get the fuck outa here"
"She's a bitch."

6 O'clock news might air report from parliament of Opposition Leader lambasting a Govt Minister for his wrongdoing in firing a Govt Dept manager, which resulted in the Minister's resignation. Few months ago, videos of MPs sleeping on the bench and an MP showing a finger to his opposition was aired on the news.
Freedom of speech, freedom of expression. Its normal that newspapers lampooning and satirizing political leaders and Prime Minister.

So it is a shock to me that Malaysia is moving to curb bloggers, on what they write. This report in Malaysiakini says that Govt trying to muzzle bloggers. Raja Petra of Malaysia-today has been grilled at Dang Wangi police station for his writing on Malaysia's constitution.

One report even say that the unemployed son in law of Malaysia's Prime Minister is saying that "Dakwa penulis blog! Biar monyet lain takut".
Really, I dont understand, why is that an unemployed man, has become the mouth piece of the Govt?
Is that the Govt policy to communicate its policy statement through some unemployed person? So there is no need to employ Communications Manager and Head of Dept?
Really, I dont understand who is driving the Govt policy, is it the Cabinet, BN Caucus, or Khairy Jamaluddin?
Are we priming the country towards dictatorship? Like, ehem, Pakistan or previously, Iraq? Are we reducing the Parliament to be rubber stamper for the incoming dictator?
Notice that KJ made the call first, the UMNO politicians follow suit and formulate policies to be rubber stamped by the rest of BN coalition.

I dont understand HOW Govt is going to muzzle the blogs. A blog is like free speech. As long as people has mouth to speak, believe me they will. In recent history, dictators starts to move by controlling media, then free speech. We know that prime media in Malaysia are all controlled by the ruling parties, leaving the online media that is still free. Well, still relatively free.
Is this the precursor to a dictatorship?

My recent attempts to surf Raja Petra's website has been thwarted by 'site unavailable' and site too busy' lately. Proof that his website has become ever more popular as the premier source of news for Malaysia.
My congratulations to Raja Petra, his most recent writing here.
If what the Malaysian bloggers write are slander, all the Govt or the person should do is just deny it. And take the blogger involved to civil court, if you can find the identity of the person.
Rounding up the bloggers and send them to jail? Thats draconian, thats sound like what the late Saddam Husein did not that long ago.
Maybe someone learn something from him.

Thursday, July 26, 2007

When the Angel of Death is coming...

Bila Malaikat Izrail datang...
kucing yang ni tahu.

Thursday July 26, 09:37 AM
Nursing home cat can sense death
CHICAGO (Reuters) - When Oscar the Cat visits residents of the Steere House Nursing and Rehabilitation Center in Providence, Rhode Island, the staff jump into action -- Oscar can sense within hours when someone is about to die.

In his two years living in Steere's end-stage dementia unit, Oscar has been at the bedside of more than 25 residents shortly before they died, according to Dr. David Dosa of Brown University in Providence.

He wrote about Oscar in the New England Journal of Medicine.

"It's not that the cat is consistently there first," Dr. Joan Teno, a professor of community health at Brown University, who sees patients in the unit. "But the cat always does manage to make an appearance, and it always seems to be in the last two hours."

Raised at the nursing home since he was a kitten, Oscar often checks in on residents, but when he curls up for a visit, physicians and nursing home staff know it's time to call the family.

"I don't think this is a psychic cat," said Teno. "I think there's probably a biochemical explanation," she said in a telephone interview.

While pets are often used to bring comfort to the elderly in nursing home settings, Oscar's talent is special, though not unexpected.

"That is such a cat thing to do," said Thomas Graves, a feline expert and chief of small animal medicine at the University of Illinois College of Veterinary Medicine.

Graves said there is no evidence to suggest cats can sense death, but he doesn't discount it for a minute.

"Those things are hard to study. I think probably dogs and cats can sense things we can't," he said.

On a particular day detailed by Dr. Dosa, Oscar settled onto the bed of a patient in room 313.

His presence sent staff off to make calls and set up vigil.

When a grandson asked why the cat was there, his mother explained: "He is here to help Grandma get to heaven," according to Dosa's account.

She died a half an hour later.

(Additional reporting by Gene Emery in Boston)

OCR Higher, Kiwidollar expected to rise further

my bet is Kiwidollar would go higher.


Reserve Bank raises NZ official cash rate


Reserve Bank Governor Alan Bollard has raised official interest rates by quarter of a percentage point to 8.25 percent.

Announcing his decision today, Dr Bollard gave a strong hint that the latest of four successive hikes in the Official Cash Rate (OCR) could be the last, and he said it came at a time of "very good news" for the New Zealand economy.

The New Zealand dollar fell on the announcement to US80.08c from US80.25c.

A lift in the OCR today had been seen as increasingly likely after stronger than expected inflation figures earlier this month, which were followed by a strong rise in the value of the New Zealand dollar.

Today Dr Bollard acknowledged the "very high levels" of the NZ dollar were hurting exports, and he also warned the market that the kiwi currency would not be able to stay at its present giddy heights.

He said the rise in the kiwi was being driven by US dollar weakness and New Zealanders' heavy demand for borrowing.

"The high New Zealand dollar is not sustainable medium term and investors should understand this," Dr Bollard said.

"The higher OCR now gives strong incentives to New Zealanders to save.

"New Zealanders have been showing early signs of moderating their borrowing. Provided they keep this up, and the pressure on resources continues to ease, we think the four successive OCR increases we have delivered will be sufficient to contain inflation," he said.

The sharp lift in the kiwi, particularly the steep ascent in the past week or so which saw it top US81c, had led to pleas from exporters, some economists and other commentators for Dr Bollard to stay his hand today.

But Dr Bollard said the New Zealand economy was running strong.

"We are recording continued big increases in international commodity prices, especially dairy, reflecting solid world demand for our products," he said.

"This is very good news for New Zealand. Given this positive situation, some of the negative commentary circulating about the economy is unwarranted.

"However, the continued tight labour market, high capacity use, and rising oil and food prices all point to sustained inflationary pressures. That is why we are increasing the OCR today."


Reserve Bank raises cash rate again
By Fairfax Media and NZPA
- Stuff.co.nz | Thursday, 26 July 2007
Email a Friend | Printable View | Have Your Say
KIRK HARGREAVES/The Press

THE HEAT IS ON: All eyes will be on whether the red hot New Zealand dollar will keep rising after the Reserve Bank raised the official cash rate again.


LATEST: The official cash rate has been raised to 8.25 per cent by the Reserve Bank, but there are signs it may be the last increase for some time.
Bollard needs wings clipped say banks

What do you think of this move by the Reserve Bank? Will it hurt your financial situation personally?Click here to send us your feedback

Announcing his decision today, Dr Bollard gave a strong hint that the latest of four successive hikes in the Official Cash Rate (OCR) could be the last, and he said it came at a time of "very good news" for the New Zealand economy.

The New Zealand dollar fell on the announcement to US80.08c from US80.25c.

A lift in the OCR today had been seen as increasingly likely after stronger than expected inflation figures earlier this month, which were followed by a strong rise in the value of the New Zealand dollar.

Today Dr Bollard acknowledged the "very high levels" of the NZ dollar were hurting exports, and he also warned the market that the kiwi currency would not be able to stay at its present giddy heights.

He said the rise in the kiwi was being driven by US dollar weakness and New Zealanders' heavy demand for borrowing.

"The high New Zealand dollar is not sustainable medium term and investors should understand this," Dr Bollard said.

"The higher OCR now gives strong incentives to New Zealanders to save.

"New Zealanders have been showing early signs of moderating their borrowing. Provided they keep this up, and the pressure on resources continues to ease, we think the four successive OCR increases we have delivered will be sufficient to contain inflation," he said.

The sharp lift in the kiwi, particularly the steep recent ascent which saw it top US81c, had led to pleas from exporters, some economists and other commentators for Dr Bollard to stay his hand today.

But Dr Bollard said the New Zealand economy was running strong.

"We are recording continued big increases in international commodity prices, especially dairy, reflecting solid world demand for our products," he said.

"This is very good news for New Zealand. Given this positive situation, some of the negative commentary circulating about the economy is unwarranted.

"However, the continued tight labour market, high capacity use, and rising oil and food prices all point to sustained inflationary pressures. That is why we are increasing the OCR today."

The .25 of a percentage point increase will hurt homeowners on floating interest rates or those whose fixed rates are coming up for renewal - about a quarter of current mortgages are due to be renegotiated during the next 12 months at fixed rates around 9 per cent.

Wednesday, July 25, 2007

MInimum Wage Issue



One of my previous writing on this issue was in letter section of Malaysiakini. Everyone entitled to his/her opinion, so one Azhar wrote this.

Ideally, in a free labour market, free capital market and free good market, everyone would be JUSTLY compensated, whether he is an entrepreneur, public/private servant or self employed.
Ideally, all who earns a living would chip in for the care and expenses of those who are unable to work, ie the incapacitated, the old and the young. In one for or another.
In a civilized society like Malaysia, we elect a Government to act on our behalf to do thing that we cannot do ourselves to attain a civilized society. ie defense, policing, taking care or the weak in society and fair distribution of national income.
Why taking care of the weak in society and fair distribution of National Income important?
Because that is related to peace and rate of crime. If the rich hogging a large portion of resources (read: wealth) and the poor hungry, very soon the poor would just take (read: steal, rob) from the rich.
'What you dont want to give, we will take.'
We have seen many unrest and revolution in history. No one the winner, neither the rich, nor the poor.

Now back to the main title of Minimum Wage.
Ideally, I would 100% support the legislation of Minimum Wage Law. That is the first choice. Everyone should be paid at least the minimum wage, on prorata basis. I would go further to suggest that it is set on hourly rate basis. Just like in the Western Europe.
There is nothing wrong to follow good example.
When I say everyone, it means just that, whether local or foreign worker. I do not condone discrimination, and I loath to see rampant discrimination in my homeland Malaysia.

If Govt is incapable or unwilling to do that, (what kind of Govt is that?)I would suggest setting a standard minimum living income/wage, at least for our Malaysian citizen. If the employer doesnt pay as much as the minimum living wage, then the Govt shall top up the said worker's income.
Explanation:
Our collective income as a nation, (your wage, my salary, employers' profits etc totals National Income) shall be divided more or less equitably and fair to make everyone happy. If employers unwilling to pay decent wages (because they want to trade profitably) then it would be fair that Govt tax their profits to be distributed back to the workers. This is not 'daylight robbery' as Azhar claimed, but merely redistribution of resources (read: income/money) that the employer unwilling to do.
That is the function of a decent Govt.

I merely write about income top up, not the full Negative Income Tax. If we implement the full NIT, the bill would be horrendously high, and taxes would have to be much higher.

The easiest most common method would be to implement Minimum Wage Law. If we care so much about our nation competitiveness, we simply have to lower our exchange rate and improve our efficiency.
Minimum wage is about fair distribution of income, it has nothing to do with competitiveness.

Would 'pendatang tanpa izin' flood the country?
You see, they (pendatang tanpa izin) come to work, because there are plentiful jobs. Jobs that pay a pittance to Malaysians (eg RM10 a day for 12 hour day), that Malaysians dont want to do. (Who want to work for that much money? You are practically subsidizing the employer). If there is minimum wage of RM900 a month for 48 hour week (or RM4.20 per hour, millions of unemployed and underemployed Malaysians would be clamouring for available jobs, and the plentiful jobs would soon vanish. Employers would take steps to improve efficiency (because of higher wages).

The side effect is that workers have more disposable income to spend in the country which would improve the economy, which will create more jobs.

As in the West, Govt must make a rule that employers must search for local worker/talent first before employing foreign worker. The wages paid to either local or foreign worker must be the same, no discrimination.

Gee, I am tired, I want to go to sleep.

this article is from Malaysiakini.

Syed Shahir: Treat all workers as human beings
Su Hui Hsing | Jul 25, 07 11:32am






FIGHTING for a cause is definitely a long and arduous process laden with discouraging unknowns and grim prospects, the scariest of which is that all the hard work will be in vain. The odyssey of a trade or labour union is also, aptly put, laborious.

When Syed Shahir Syed Mohamud was elected president of the Malaysian Trade Union Congress (MTUC) in 2004, what the future held was unclear, but one thing was certain - that his task was to receive the baton from his predecessor and continue pursuing the unfinished business of the past.

The role of a trade union may be multi-faceted, but fundamentally, Syed Shahir fights for the rights of workers, who are prone to exploitation in a capitalist economy.

For MTUC, an umbrealla organisation that represents hundreds of trade unions and many times more workers nationwide, its role could be of an even higher order but the principle is still the same.

While the motivation for pursuing the rights could be political, social or economic, the one motivation that guides Syed Shahir is just to be human and sympathetic towards the helpless and hopeless.

"Human beings deserve to be treated like human beings. They should get what they deserve."

To him, it is as simple as that - upholding the dignity of his fellow human beings.

‘Most times are difficult’

While his 2004 victory was an encouraging milestone in his fight for his fellow workers, the journey has not been easy. His victory was not an easy one either. It has taken him persistence and five challenges for the presidency to be where he is today.

It seems like Syed Shahir will never be content with what he has achieved.

Asked when was the most difficult time during his work in the union, Syed Shahir said, "Most of the times have been difficult. To me, it is most difficult when you want to fulfill the wishes of your members. Other people might accept me and what I have done for them, but I cannot easily accept myself."

"For example, the dispute of the leadership of the National Union of Bank Employees was unresolved for many years. So when I took over in 2004, I promised that I would try to resolve the issue within three months. I failed within that period. It eventually took six to seven months. The moment you make the promise, until you resolve it, it is something that will tug at your heart."

In fact, Syed Shahir is now faced with a similar challenge.

Share of country’s rewards

He has been in the limelight a lot lately for MTUC's demand to the government to pass a legislation for a minimum wage of RM900 and a cost-of-living allowance of RM300 for workers in the private sector.

MTUC made it to the headlines lately for holding a nationwide picket for the cause. However, minimum wage is not a new endeavour that the congress has just undertaken. In fact, it started pushing for the policy eight years ago.

Two months ago, watching their counterparts in the civil service getting a rather hefty pay raise and anticipating the inflation that could possibly result, Syed Shahir and MTUC took up the challenge to step up MTUC's movement for the implementation of a minimum wage.

If anything, MTUC just wanted their workers to be able to enjoy a share of the rewards of the country's economic growth, which they have contributed towards, and have a form of social security in an increasingly expensive country to live in.

While he has been a unionist for more than 30 years, Syed Shahir's first encounter with unionism was rather indirect.

"I had several friends in KL then. I was helping them write up some articles and doing translation from English to Malay. So I got to know some friends who were in the trade union in 1972. The workers of an engineering company went on a strike so we helped them with translating some materials. There was a lot of industrial action at that time," said Syed Shahir, who hailed from Pahang, on his most remote but earliest involvement with union activities.

Syed Shahir was then working as a teacher on attachment. He then left the civil service to contest in the 1974 general election at the age of 21.

Now 55, Syed Shahir officially took on union activities when he became a member of the National Union of Transport Equipment Allied Industry Workers. He has been an active member of MTUC for about 15 years now.

‘Politics not interfering in my work’

Besides being a unionist, Syed Shahir is also a member of PKR, having been with PRM before it merged with PKR.

Syed Shahir dismissed arguments of his involvement in politics conflicting with his trade union movement.

He said, "Being in politics will not interfere in my work for MTUC. On the contrary, some causes pursued by certain politicians are in line with what MTUC is doing. We cannot impose our will on others. I believe in the free choice of a person. If I want to become a member of a political party, it's my choice."

On why unionists tend to be aligned to opposition parties, Syed Shahir said while the government protected the interests of investors and capitalists, unionists had to take a different position to support the workers. When he decided to support his members and oppose policies that are detrimental to the well being of the workers. He also stressed that there were members of the ruling party who were also involved in union activities.

In spite of the fact that the government has repeatedly expressed its disapproval towards the proposal, Syed Shahir and MTUC will relentlessly pursue the cause. Only three years after he took over the helm, Syed Shahir now faces the test of the burden that he was bequeathed with and hopefully, to bring it to completion.

Now, the time it will take for the government to give the nod to MTUC's minimum wage proposal, or whether it will give the much-desired nod at all, is still questionable. It may take months or years. It may not even happen during Syed Shahir's term as president. Nevertheless, he believes in laying the foundation for future generations to enjoy the fruits of the struggle.

The MTUC president added, "The struggle of any organisation will continue. Leaders come and go but the organisation remains. Only the speed and the phase will change."
SU HUI HSING is an intern with Malaysiakini.

Runaway Kiwidollar


got to say.. I told you so!

and if Alan Bollard made the expected decision to increase interest rate, expect the Kiwi flying higher.
If I were Alan Bollard, I would drop interest rate down by at least 3%. Drastic drop, to spook foreign investors and speculators parking their money to get high interest rate.
Yes that will put inflation target on the back burner, and risk higher inflation in the short term, but really, the inflation is driven by residential property anyway. If overseas funds move out, and less overseas investor buying NZ property, that would dampen down the prices.

Focus on NZRB as runaway NZ dollar tops US81c


The runaway New Zealand dollar continued smashing records today breaking through the US81c hurdle.

In hectic action, the kiwi raced up to US81.1c in mid-afternoon, its highest level in over quarter of century. It closed on US80.87c, over a cent higher that yesterday's US79.88c close.

Finance Minister Michael Cullen said the kiwi's gain was mainly the result of US dollar weakness but the kiwi made hefty gains across the board.

It hit a 20-year high against the Japanese yen, rising from around 96.20 yesterday to a high of 97.78.

It gained the best part of a cent against the Australian dollar as well, ending on A91.45c against yesterday's A90.65c and the trade-weighted index closing level of 76.95 was its highest close since the currency's float in 1985.
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All eyes are now on whether the Reserve Bank will hike interest rates again on Thursday and whether that will thrust the kiwi to new highs.

Analysts said it was a 50:50 call with some saying another rate rise would see the economy hit the wall, thus ensuring a currency fall.

The wholesale interest rate market, which yesterday had priced in 17 basis points of the forecast 25 basis point rise, backed away a few pips today as the currency rose, suggesting a rate rise was less probable.

Deutsche Bank NZ's head of global markets, Sean Brown said the kiwi rose for the same old reasons, the currency's high yield.

US model accounts were doing much of the buying.

He said raising rates with the currency about US80c would be a hard call for central bank governor Alan Bollard.

"There will be plenty of people at the RB probably telling him that if you want to get the currency lower, you have to soften the economy and the quickest way to do that is to keep raising rates."

Mr Brown said there were also convincing arguments the other way -- that rates had been raised three times this year and time was needed to allow those actions to take effect.

"I wouldn't be surprised either way, but I'd slightly lean towards a rate hike to try and rebalance things."

Anthony Byett of fxmatters said it was one way traffic today.

He said the pattern after rate review tended to be for the NZ dollar to back off a little, with a US2c fall typical.

The key to a currency fall was less inflationary pressure, which would come when there was less demand in the economy, meaning lower growth rates.

"When we see that happen, we will see the NZ dollar quite likely plummet," Mr Byett said.

Meanwhile, the US dollar fell to a two-month low against the yen and hovered near a record low against the euro as worries about US subprime mortgage woes hurting the credit market and the economy still weighed.

Traders said market sentiment remained bearish for the US dollar, and players were awaiting US economic data later in the week for clues on whether the problems in the housing sector were spreading to broader economic activity.

Sterling extended gains to a 26-year high of $US2.0647 supported by expectations the Bank of England will lift rates to 6.0 percent by the year-end from 5.75 percent now.

Tuesday, July 24, 2007

Arbibi Ashoy; The Rich and the Poor

This writing in Malaysiakini letter
Rights of rich outweigh rights of poor
Arbibi Ashoy
Jul 23, 07 5:43pm Adjust font size:

I refer to the letter Taxing rich to pay poor is daylight robbery.

It is important to clarify that the MTUC is seeking a minimum wage legislation of RM900. The MTUC is not asking for better social welfare or cash handouts from the government. It is asking that people who do a job, deserve to be duly paid for their effort.

Social welfare is not the same as minimum wage as welfare is meant for certain categories of people such as the handicapped, the physically and mentally ill, the unemployable, the homeless, single mothers, the elderly and children. Thus minimum wage does not affect productivity and does not encourage laziness as some have accused. In fact, minimum wage makes hard work become more attractive as the benefits of remaining in employment actually increases.

The writer argues that salary should commensurate with qualifications and experience. So who gets to decide who deserves what? If companies are entitled to protectionism in the form of tariffs on foreign goods and curbs on the entry of foreign firms into Malaysia, shouldn't the employees of these companies be entitled to protection as well? Since the government protects the employer, why are the employees not deserving of protection as well?

The function of minimum wage is to prevent exploitation of workers by their employers. I find it disappointing that the Malaysian government has neglected the poor by denying them a minimum wage but is always willing to help the rich in the form of ‘bailouts’ and awarding them APs (approved permits).

The argument against the minimum wage is that it will deny some the luxury of having maids. Note that I have used the word ‘luxury’ because in my opinion, having maids is a ‘luxury’ but earning a decent living is a ‘basic necessity’.

So, Malaysia is a country where the rights of the rich outweigh the rights of the poor. Shocking still is the small minority of Malaysians who are willing to thwart the attempts of the MTUC to eradicate poverty simply because they have become too accustomed to their comfort zone.

I also disagree that taxing the rich is daylight robbery. Any facilities provided by the government for the poor also benefits the rich. These would include free healthcare (including major operations), free or subsidised education, free self-improvement courses, unemployment assistance, rent-controlled flats and houses, free library membership, legal aid, day care centres, an affordable and efficient transport system, free gyms, sports and recreational centres, free meals and textbooks for schools as well as government sponsored tuition and counselling for academically weak and problem students.

Tax is not ‘robbery’ if the money is put to good use and not splurged on wasteful mega-projects or if the money does not find its way into the pockets of politicians and their cronies.

Monday, July 23, 2007

Living on Minimum Wage in America

this story from AP.

Minimum wage increase to boost up some of poorest US workersWASHINGTON (AP): Fast-food waitress Fawn Townsend of Raleigh, North Carolina, knows exactly what she is going to do if her salary goes up with Tuesday's increase in the federal minimum wage: start saving for a car so she can find a second job to make ends meet.

"My goal personally is to get a vehicle so I can independently go back and forth to work and maybe pick up extra work so I can have that extra income, because minimum wage is not cutting it,'' said Townsend, who is 24 and single.

"Being a single person, you can't pay all your bills with one minimum wage job.''

Many lawmakers, along with advocates for low-wage workers, are celebrating the first increase in the federal minimum wage in a decade. Yet many acknowledge that raising it from $5.15 (euro3.73) an hour to $5.85 (euro4.24) will provide only meager help for some of the lowest paid workers.

About 1.7 million people made $5.15 (euro3.73) or less in 2006, according to the Labor Department's Bureau of Labor Statistics.

"The reality for a minimum wage worker is that every penny makes a difference because low-wage workers make the choice between putting food on the table and paying for electricity or buying clothes for their children,'' said Beth Shulman, former vice president of the United Food and Commercial Workers Union.

"Saying that, it's clear going up to $5.85 is not enough to really make sure that people really can afford the things that all families need,'' said Shulman, author of "The Betrayal of Work: How Low-Wage Jobs Fail 30 Million Americans.''

Minimum wage workers will get an additional 70-cent boost each summer for the next two years, ending in 2009 at $7.25 (euro5.25) an hour. That comes to just above $15,000 (euro10,867) yearly before taxes for a 52-week work year.

Now, someone in such a job and earning $5.85 (euro4.24) an hour would bring home $12,168 (euro8,815) a year before taxes. The federal poverty level for singles is $10,210 (euro7,397), couples is $13,690 (euro9,918) and $17,170 (euro12,439) for families of three.

"In the wealthiest country in the history of the world, it is an outrage that anyone who works full time would still wind up in poverty,'' said Democratic Rep. George Miller of California, chairman of the House Education and Labor Committee. "Everyone who puts in an honest day's work should receive a fair day's pay.''

Poverty and the minimum wage are becoming a major issue in the Democratic presidential race. Former North Carolina Sen. John Edwards and Sen. Barack Obama of Illinois are emphasizing raising the minimum wage during their tours of impoverished areas.

Edwards, who said he wants to eliminate poverty within a generation, favors raising the minimum wage to $9.50 (euro6.88). Obama is advocating a "living wage'' that would go up as inflation rises and he has promised to eliminate the phrase "working poor.''

More than two dozen U.S. states and the District of Columbia already have minimum wages higher than the federal one. Even in those states, an increase in the federal minimum wage probably will have a ripple effect, increasing the salaries of Townsend and others.

North Carolina raised its minimum wage from $5.15 (euro3.73) to $6.15 (euro4.46) in January.

"It's a long overdue first step,'' said Cindia Cameron, the national organizing director of 9to5, the National Association of Working Women. Minimum wage workers typically are young, single and female and are often black or Hispanic.

Even then when the full increase is enacted, minimum wage workers will be just scraping by. "It's not enough money to meet your basic needs, I'm talking about your rent, your gas, and gas to get back and forth to work,'' said Sonya Murphy, head organizer of the Mississippi Association of Community Organizations for Reform Now, or ACORN.

But at the same time, employers who pay many of these low-wage workers say increasing the minimum wage only means they have to raise the prices of the products, cut back on employees' hours or let some workers go.

"When you go into the grocery story now, you may be checking your own groceries, you may be bagging your own groceries,'' said Jill Jenkins, chief economist for the Employment Policies Institute. "All of these things are because of mandated wage hikes. When you have to pay more, employers begin to find other options to keep costs down.''

According to the National Restaurant Association, the last minimum wage increase cost the restaurant industry more than 146,000 jobs and restaurant owners put off plans to hire an additional 106,000 employees.

At $7.25 (euro5.25) an hour, the most likely response from restaurants will be "increases in menu prices, elimination of some positions and reduction of staff hours to try and offset some of the increased labor costs,'' said Brendan Flanagan, the association's vice president of federal relations.

Others say the effect on the economy will be negligible.

A PNC Economic Outlook survey done in April showed three out of four small- and middle-market business owners said raising the minimum wage would have little or no impact on their businesses. "In a tighter labor market, they already raised wages to be competitive,'' said Stuart Hoffman, chief economist for PNC Financial Services Group.