New report shows increasing federal minimum wage would give more than 28 million American workers a raise, create jobs, and give boost to local economy

(Rock Island County, Ill) - A new report from the Economic Policy Institute (EPI) shows more than 1,238,225 workers in Illinois would benefit, directly or indirectly, from an increase to the federal minimum wage (see attached report).

Increasing the federal minimum wage from $7.25 to $9.80 per hour would give these workers a raise while generating approximately 4,500 jobs in Illinois, over three years, finds the new EPI Issue Brief authored by Doug Hall, How raising the federal minimum wage would help working families and give the economy a boost.

Nicole Thompson, a minimum wage worker in Rock Island, says a raise in the minimum wage would greatly help her family pay for basic necessities like food and utilities "Sometimes I have to go to the food pantry just to feed my family." Thompson works more than 40 hours a week.

In contrast to prevailing myths about minimum-wage workers, raising the federal minimum wage would benefit millions of workers across demographic groups, not just teenage part-time workers. Almost 88 percent of workers who would be affected are at least 20 years old. Female and non-minority workers would benefit disproportionately from the increase; women comprise nearly 55 percent of those affected, and non-Hispanic white workers make up about 56 percent.

While increasing the minimum wage immediately benefits the lowest-paid workers through boosted earnings, it also yields positive effects on the larger economy. Raising the federal minimum wage to $9.80 would put nearly $40 billion in the hands of directly and indirectly affected families, augmenting their spending power in the local economy. In return, these families would be more likely than any other income group to spend these extra earnings immediately on basic needs or services they could not previously afford.

[mog1] This additional spending power would be a useful tool to spur job growth, as employers would need to hire new staff to keep up with heightened demand for goods and services. In fact, an increase in the federal minimum wage from $7.25 to $9.80 per hour would result in a net increase in economic activity of approximately $25 billion, generating approximately 100,000 new jobs. This hike would have a positive impact across the country, with job creation in every state.

EPI researchers show that raising the minimum wage would provide a substantial lift to the national economy and benefit workers still reeling from the effects of the recession, generating almost $40 billion in increased wages.

"With the national unemployment rate not budging below 8.0 percent, now is the perfect time to raise the minimum wage," said Hall. "Not only will it generate billions of new dollars for the economy while adding new jobs when we sorely need them, it will begin to address the wage stagnation working families have faced during the last four decades, while putting more money in their hands when they need it most."[mog2]

###

CHICAGO -- With President Obama continuing to campaign in Iowa today, it's important to note how local editorial boards have publicly rebuked Mitt Romney's opposition to the Wind Energy Tax Credit, which is set to expire at the end of this year. Unlike President Obama, who supports extending the tax credit, Mitt Romney and Paul Ryan want to let the credits expire, which would put thousands of jobs at risk in Iowa and other states. The Romney-Ryan plan isn't just bad for jobs in Iowa - it's also deeply unpopular with voters and Republican officials in Iowa, who strongly support extending the tax credit and continuing to support the state's growing wind energy industry.

Below is just a snapshot of local coverage from Romney-Ryan's opposition to the tax credit:

Romney should revisit wind tax issue

Cedar Rapids Gazette // Editorial

Romney opposes an extension of the federal wind energy tax credit when it expires this year. That stand is at odds with the entire Iowa congressional delegation, including Reps. Tom Latham and Steve King and Sen. Chuck Grassley, all Republicans, as well as Republican Gov. Terry Branstad, who says Romney just needs a little more education on the topic.  ...We agree with the governor.

Our opinion: On wind energy, Romney blows it

Dubuque Telegraph Herald // Editorial

Romney reveals a lack of understanding of the importance of wind energy. ...Among the flaws in this logic is that subsidies give wind an unfair advantage. Over coal? Over natural gas? These industries have the infrastructure built over a century of being consumers' only option. As wind energy attempts to make inroads, the subsidies are merely helping it gain footing.

The Register editorial: Wind tax credits should be extended

Des Moines Register  // Editorial

Mitt Romney, the presumptive Republican presidential nominee, may have tilted at the wrong windmills when he said he would allow wind energy tax credits to expire. The incentive for erecting wind generators is very popular in Iowa and other Midwestern states that are harnessing the clean power of the prairie zephyrs. ...Iowa is especially big on wind. This state is ranked No. 2, behind only Texas, in wind generation capacity, and it employs more people than any other state building and maintaining wind towers and turbines.

Turning up the heat on renewable fuels

Spencer Daily Publisher // Paula Buenger, Publisher

Add to the conversation the Romney campaign's pledge to do away with the wind energy tax credits if he is elected. Without support for ethanol or wind energy, the US suddenly becomes much more dependent on foreign oil and, as a result, more interested in the affairs of state in countries we really would rather not be in. I have a feeling the heat will stay high on this issue for a long time to come.

Editorial: Wanting more details on Romney's PTC position

West Branch Times // Editorial

Staff members of the likely Republican candidate have recently said that he would favor ending the PTC, but they did not state whether he would favor phasing it out or ending it immediately. The PTC directly benefits Acciona Windpower in West Branch because it provides tax credits of 2.2 cents per kilowatt hour from wind facilities in service before Dec. 31, 2012. Both Republicans and Democrats from Iowa's Congressional caucus support the PTC because it helps support 6,000 to 7,000 jobs here.

Wind energy tax breaks are bipartisan in Iowa

Ames Tribune // Editorial

The Iowa Republicans are right. Wind is important. It's big business here, and Iowa is a leader in the industry... But wind energy is also a young industry, competing with the deeply entrenched fossil fuel industry ? which also receives billions in government subsidies every year. Wind needs a help a little longer to get established.

Uncertainty Surrounding Production Tax Credit Threatens Remarkable Expansion

WASHINGTON - The Energy Department released a new report today highlighting strong growth in the U.S. wind energy market in 2011, increasing the U.S. share of clean energy and supporting tens of thousands of jobs, and underscoring the importance of continued policy support and clean energy tax credits to ensure that the manufacturing and jobs associated with this booming global industry remain in America. President Obama has made clear that clean, renewable wind energy is a critical part of an all-of-the-above energy strategy that aims to develop more secure, domestic energy sources, while strengthening American manufacturing.    According to the 2011 Wind Technologies Market Report, Iowa is one the country's largest and fastest growing wind markets, ranking second among all U.S. states in percentage of in-state electricity generation from wind power. The report finds that in 2011, Iowa installed 647 megawatts (MW) of new wind power capacity, bringing its total to over 4,300 MW, or enough to power about 1 million homes. With this installed capacity, Iowa can generate about 20 percent of its electricity from wind energy.

"This report shows that America can lead the world in the global race to manufacture and deploy clean energy technologies," said Energy Secretary Steven Chu.  "The wind industry employs tens of thousands of American workers and has played a key role in helping to more than double wind power over the last four years. To ensure that this industry continues to stay competitive, President Obama has called on Congress to extend the successful clean energy tax credits, which are benefitting businesses and manufacturers nationwide."

Nationally, wind power represented a remarkable 32 percent of all new electric capacity additions in the United States last year and accounting for $14 billion in new investment.  According the report, the percentage of wind equipment made in America also increased dramatically.  Nearly seventy percent of the equipment installed at U.S. wind farms last year - including wind turbines and components like towers, blades, gears, and generators - is now from domestic manufacturers, doubling from 35 percent in 2005. See an interactive map of manufacturing facilities across the U.S., including those in Iowa HERE.

The report also finds that in 2011, roughly 6,800 megawatts (MW) of new wind power capacity was added to the U.S. grid, a 31 percent increase from 2010 installations.  The United States' wind power capacity reached 47,000 MW by the end of 2011 and has since grown to 50,000 MW, enough electricity to power 13 million homes annually or as many homes as in Nevada, Colorado, Wisconsin, Virginia, Alabama, and Connecticut combined. The country's cumulative installed wind energy capacity grew 16 percent from 2010, and has increased more than18-fold since 2000. The report also finds that six states now meet more than 10 percent of their total electricity needs with wind power, with Iowa ranking second nationally.

The growth in the industry has also led directly to more American jobs throughout a number of sectors and at factories across the country.  According to industry estimates, the wind sector employs 75,000 American workers, including workers at manufacturing facilities up and down the supply chain, as well as engineers and construction workers who build and operate the wind farms. In Iowa alone, the industry supported 4,000 to 5,000 direct and indirect jobs in 2010. For instance, at ACCIONA Windpower's West Branch assembly plant 100 workers are working to produce 1.5 MW and 3 MW wind turbines. In Des Moines, Keystone Electrical Manufacturing Company has seen power control system orders from the wind industry grow from almost nothing a decade ago to nearly 22 percent of gross sales today.

Technical innovation allowing for larger wind turbines with longer, lighter blades has steadily improved wind turbine performance and increased the efficiency of power generation from wind energy.  At the same time, wind project capital and maintenance costs continue to decline, driving U.S. manufacturing competitiveness on the global market. For new wind projects deployed last year, the price of wind under long-term power purchase contracts with utilities averaged 40 percent lower than in 2010 and about 50 percent lower than in 2009, making wind competitive with a range of wholesale power prices seen in 2011.

Despite these recent technical and infrastructure improvements and continued growth in 2012, the report finds that 2013 may see a dramatic slowing of domestic wind energy deployment due in part to the possible expiration of federal renewable energy tax incentives. The Production Tax Credit (PTC), which provides an important tax credit to wind producers in the United States and has helped drive the industry's growth, is set to expire at the end of this year. The wind industry projects that 37,000 jobs could be lost if the PTC expires. Working in tandem with the PTC, the Advanced Energy Manufacturing Tax Credit provides a 30 percent investment credit to manufacturers who invest in capital equipment to make components for clean energy projects in the United States. President Obama has called for an extension of these successful tax credits to ensure America leads the world in manufacturing the clean energy technologies of the future.

See the full annual report and download underlying data produced by the Energy Department's Lawrence Berkeley National Laboratory HERE.

###

CHICAGO - August 13, 2012. Governor Pat Quinn today issued a statement regarding recent violent crimes committed against Illinois Muslim centers.

"I am saddened to learn of two recent violent crimes against Illinois Muslims in Morton Grove and Lombard. We should all be able to agree that there is no place in Illinois for hate crime and religious intolerance.

"No matter what faith you may practice, attacks on places of worship are just plain wrong and do not reflect the values of the people of Illinois."

 ###