Starting on July 24, the Federal minimum wage is increasing from $6.55 to $7.25 per hour, the last part of the 2007 minimum wage legislation passed by Congress. A recent Economic Policy Institute study found that the increase will generate an economic stimulus in the form of $5.5 billion in additional consumer spending over the next 12 months. "Unlike tax cuts for the wealthy, a higher minimum wage increases consumer spending on local businesses, which is good for everyone," points out Rep. George Miller, the lead sponsor of the bill in the House (Sen. Kennedy was the chief sponsor in the Senate).

"Tomorrow's minimum wage increase is an important step in strengthening our economy by putting $1,400 a year in the pockets of 13 million hardworking Americans who make the Federal minimum wage," said SEIU Secretary-Treasurer Anna Burger. "But when we can give the very banks that tanked our economy more than $24 trillion in bailout funds and other guarantees, which amounts to almost $80,000 for every American, we must do more to help working families." (Read our statement on the wage increase here).

Workers in 31 states will see the numbers in their paychecks go up as a result of the raise in the minimum wage going into effect Friday. For the The remaining states already have state minimum wage rates the same or higher than Friday's new federal rate. The states that will see an increase are: Alabama, Alaska, Arkansas, Delaware, Florida, Georgia, Idaho, Indiana, Kansas, Louisiana, Maryland, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New York, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, Wisconsin, and Wyoming.

Just in case you prefer visuals to lists, here's a map from the Department of Labor explaining how the wage increase will (or won't) affect each state:

The minimum wage increase will strengthen America's economy - but we need to do more to help working families. Add your name to the petition for Employee Free Choice.

Labor unions SEIU, AFL-CIO, NEA, USW, CWA, IBT and UFCW are headed to the White House next week. On Monday, the united group of labor leaders--including SEIU's Andy Stern and Anna Burger--will meet with President Obama to discuss joint efforts to build an economy that works for all including passing healthcare reform, economic stimulus and the Employee Free Choice Act.

"Obviously the folks around the table have an acute interest in the economy, and the president wants to hear from them about what basically needs to happen to grow the economy and to stabilize the middle class right now," said Patrick Gaspard, the White House political director and previous executive VP of politics and legislation at 1199SEIU. Read Change to Win's labor unity statement on labor's united efforts. Full NY Times piece on next's week's visit with the President here.

SEIU members, community leaders and supporters of the Employee Free Choice Act rallied in San Diego, San Jose, Sacramento and Santa Rosa yesterday, arguing that a real economic stimulus package for California should make it easier for workers who want a union at work to have one. The events unveiled a new report from the Center for American Progress detailing how allowing workers more freedom to form unions would benefit California workers - and the state's economy. In California, wages for unionized workers were 12.7 percent higher--$2.74 dollars more per hour--than non-union workers with similar jobs during a four-year period between 2004 and 2007.

If unionization rates increased by just 5 percentage points from current levels, California workers would earn an estimated $3.7 billion more in wages per year. "Talk about a stimulus package?" commented Chris Benner, professor of regional economic development at UC Davis and SEIU ally, "This is close to $4 billion of added spending power in California!" States with low levels of unionization experienced almost twice as much job growth between 2001 and 2006 as those states with higher levels of unionization, according to a white paper published last year by the U.S. Chamber of Commerce.

In addition to community leaders and experts, workers who belong to unions and or would like to join one shared their experiences about the benefits of unionization and the current obstacles in the way of workers. Members from SEIU Local 521 and Local 1021 also took part in yesterday's events advocating for the Employee Free Choice Act.

Joining a union is not only good for individual workers but it is good for the economy as a whole. As the national focus begins to shift from passage of the Economic Recovery Act to securing long-term solutions for rebuilding the middle class, it's not hard to see why workers want to join unions--wages go up, benefits go up, and working conditions improve.

We did it!

Thanks in part to your hard work, President Obama signed the American Recovery and Reinvestment Act into law yesterday afternoon.

I've recorded a brief video discussing what passage of the American Recovery and Reinvestment Act means to our members along with an outline of the next steps as the battle moves to the states.

Thanks for your support. Your letters and calls to your senators played a critical role in delivering change that works for all working people in America.

"This is your money. You have a right to know where it's going and how it's being spent. Learn what steps we're taking to ensure you can track our progress every step of the way."

Keeping in line with his campaign's theme of accountability and transparency, the Obama administration has put up a new website to help people track how the economic stimulus money is spent: http://www.Recovery.gov/

"With a recovery package of this size comes a responsibility to assure every taxpayer that we are being careful with the money they work so hard to earn. And that's why I'm assigning a team of managers to ensure that the precious dollars we've invested are being spent wisely and well," President Obama said before signing the $787 billion stimulus bill into law today at the Denver Museum of Nature and Science. (Read Obama and Biden's remarks at the signing of the American Recovery and Reinvestment Act here)

Speaking of accountability and transparency....Media Matters has compiled a comprehensive look at the mainstream media coverage the economic recovery bill was given from the time of its conception to the present day. Some of the numerous myths and falsehoods that repeatedly popped up in the media's coverage of the recovery package include:

* Failing to feature economists during recovery debate
A study of Sunday talk shows and cable news programs from January 25 through February 8 found that economists made up only 25 guest appearances out of 460 - only 5 percent - during the 139 ½ hours of programming in which the recovery package was discussed.

* Misrepresenting 1930s unemployment figures to incorrectly claim New Deal programs did not work
Documented journalists continuing the effort among conservative media of attacking the New Deal and President Roosevelt in an attempt to discredit Obama's stimulus plan include Washington Post's George Will and syndicated columnist Mona Charen.

* Propagating Health IT falsehood spearheaded by Rush Limbaugh
SEIU also worked to debunk Rush's scare tactics and clear the air about the benefits of health IT, from the viewpoint of caregivers. See "Limbaugh doesn't get IT" and "Caregivers Defend Health IT."

* Falsely claiming that undocumented immigrants without Social Security numbers could be eligible for tax credits
The Drudge Report and AP, guilty as charged.

Still think the media covered the economic bill fairly? That's because you haven't watched this video yet:

"President Obama really wants to make sure the voice of people are heard in Washington and that as we develop economic policies, they work for people across our country: for workers, for business, for the economy as a whole," says SEIU Secretary-Treasurer Anna Burger in a MarketWatch video interview on Friday.

In the interview, Burger speaks about the White House economic advisory board and the economic stimulus package. She also talks about the importance of job creation, healthcare reform and the Employee Free Choice to help get the country back on track. "I see this as an opportunity to take a transformational election and turn it into a transformational economic policy so that working families have a chance to achieve the American Dream," says Burger.

Watch the video here:

Yesterday, companies across the employment spectrum announced more than 65,000 job cuts around the country and around the world, another alarming indication that more pink slips, pay freezes and economic hardships are in store for working families. President Obama cited the layoff announcements in remarks yesterday morning as he urged action on an $825 billion economic stimulus package of tax cuts, emergency benefits and public spending projects.

On the commentary section of Guardian.co.uk, Dean Baker discusses why Congress needs to approve a version of President Barack Obama's stimulus package as quickly as possible to further that all important first step toward stopping the downward slide of the economy. "However, the package is only a first step," says Baker:

"The other obvious way to provide a quick boost to the economy is by giving employers tax incentives for shortening their standard workweek or work year. This can take different forms. An employer who currently provides no paid vacation can offer all her workers three weeks a year of paid vacation, approximately a 6% reduction in work time.

As the new administration and Congress works to lift the U.S. economy out of the economic crisis, we've been working on some analyses on how our country has recovered economically since the 1940's.

What we've found isn't much of a surprise, and it makes sense: economic success occurs when rising wages spur consumer spending.

That's exactly what the Employee Free Choice Act is designed to deliver, and the legislation will play a central role in building a strong middle class that will usher in the next era of American economic strength and prosperity.

New research makes a solid case as to why the Employee Free Choice Act would be a "stimulus" that gets our economy back on track. The Economic Policy Institute estimates that if 5 million service workers join unions:

• 5 million workers would get a 22 percent raise on average, or an additional $7,000 a year;
• $34 billion in total new wages would flow into the economy;
• 900,000 jobs would be lifted above the poverty wage for a family of four ($10.22/hr); and
• Between 1.8 million and 3 million dependent children would share in these benefits.
• The economic impact on individuals would be about four times as large as the recent federal minimum wage increase, and allow nearly six times more in new wages to flow into the economy.

We know you feel the economic squeeze - but have you heard of these facts and figures?

• Wages are stagnant. Worker wages have increased just 0.2 percent from March 2001 to September 2008.
• Real median household income was $1,175 less in 2007 than it was in 2000, while each family spent more than $4,600 more for basic expenses (e.g. gas, mortgage, food, and healthcare).
• Faced with this reality, average Americans have taken on increasing debt to maintain living standards.
• Household debt hit record levels in 2007, averaging 129 percent of disposable income.
• Meanwhile, the average CEO pay has risen: CEO pay has skyrocketed from 27 times more than the worker wages in 1973 to 344 times higher today.

In the past, the growth of unions have helped the economy dramatically:

• One-third of all American workers joined unions and shared in economic progress between 1947 and the early 1970s, one of the most prosperous periods in U.S. history.
• Between 1947 and 1973, median family income more than doubled, productivity grew 2.9 percent a year, America's economic output nearly tripled and income inequality declined.

And here's what we know about unionized workers today:

• Workers in unions earn 14 percent higher wages than workers who are not, are 28 percent more likely to have health insurance, and 54 percent more likely to have a pension.
• The economic advantage for workers of color is even greater. African American workers in unions earn 18 percent more than their nonunion counterparts, while Latinos earn 22 percent more.
• Unions help all workers, not just union members, as nonunion employers often attempt to match union pay and benefits to help recruit employees.

And there you have it: a simple economic argument on why the Employee Free Choice Act is vital in today's economy.

You can read about all of our facts and figures in this report below, entitled "Path to Prosperity."

Path to Prosperity

President-elect Barack Obama's office announced the details of his major speech on the economy Wednesday afternoon, advocating "urgent action" on his economic stimulus plan. The speech will be held at 11 a.m. today at George Mason University in Fairfax, VA., located just outside of Washington, D.C.

Obama will focus on the stimulus plan he is negotiating with Congress, "[making] the case for urgent action on an American recovery and reinvestment plan that will save or create 3 million jobs while investing in priorities like health care, energy and education that will jump-start economic growth," the transition team said in a release.

The president-elect is taking his appeal straight to the public after lobbying on Capitol Hill on Monday for his stimulus plan, which is expected to reach $775 billion over two years. Get more details on Obama's economic stimulus plan.

On Politico's The Arena, SEIU International Secretary-Treasurer Anna Burger helps drive the conversation by giving us her boldest political predictions for 2009:

I predict that 2009 will be the "Year of the Middle Class." Voters have spoken powerfully for change and now expect action that both revives our failing economy and builds it stronger, and fairer, for the future. By rebuilding the American Dream for millions of families and rewarding work instead of one's wealth, greed or market manipulation, we can strengthen our economy for generations to come. [...] SEIU's members will help make 2009 the "Year of the Middle Class" by involving millions of Americans in an intensive state-by-state campaign to create an economy where hard work means you can make a good living and fulfill your dreams instead of treading water or falling behind.

Read the rest of Anna's reflections on the new year on Politico here.

Andy Stern appeared on Bloggingheads.tv today to talk with Robert Reich about stimulating our economy, the future of labor and why we need the Employee Free Choice Act. Watch video clip excerpts from the discussion below or view and listen to the entire thing over at Bloggingheads.tv.

Andy Stern explains why the Employee Free Choice Act is needed now: