minimum wage should be increased persuasive speech

Persuasive Essay Sample: The Minimum Wage Must Be Raised

“Trying to just Survive” were the words of a man interviewed about his view on the minimum wage (Lenahan). The minimum wage is a topic that divides those who live working minimum wage jobs and policymakers. The minimum wage has been a topic up for debate for a while as workers find the federal minimum wage of $7.50 simply unlivable anymore. At the same time, prominent political policymakers refuse to give in to the truth behind the workers' plea as they worry about significant business and inflation. Although raising the minimum would increase price inflation, raising the minimum wage is essential, as it would provide a livable wage for low-income workers while stimulating and growing the economy.

Minimum wage workers struggle to make ends meet as they find that making 7.50 an hour is not enough for the cost of living anymore. According to “Should, the Federal Minimum Wage Be Increased?” As decided 13 years ago, the minimum wage is $7.25; in 1968, it was $1.60, when adjusting to inflation, that is equivalent to $11.16. When adjusting for inflation to today’s standard, the minimum wage is “53.9% higher than today’s $7.25 federal minimum wage” (Should the Federal Minimum Wage Be Increased). The 53.9% difference shows that the minimum wage must be revised as workers suffer from making essentially 3.91 an hour less than they would if inflation was adjusted. This dramatically impacts the workers' social mobility as workers are barely floating above the poverty line, without dependents. Factoring in two dependents would mean that “the federal minimum of $7.25 leaves an adult with two children thousands of dollars below the federal poverty threshold” (Raising the Minimum Wage: Good for Workers, Businesses). The sad reality of the minimum wage and families who struggle with a single income on minimum wage is the struggle to make a decent life and fund their children's education and lifestyle. This adds to the growing concerns of starting a family. People struggle with monetary issues, live paycheck to paycheck, and worry about covering their essential bills. The minimum wage is a change that must be made to completely change the lives of everyday workers and increase social mobility in the United States. 

Additionally, increasing the minimum wage would help stimulate the economy while causing more worker productivity and a stable workforce. While initially, it could be a concern that raising the minimum wage would affect the job opportunities as a business would not want to hire employees due to the cost, this has been disproven. According to Raising the Minimum Wage: Good for Workers, Businesses, “Leading economists have found that increases in the minimum wage have no discernible effect on employment.” Thus, proving that raising the minimum wage would not have an adverse effect on unemployment and workers getting laid off. Instead, it would help stimulate the economy more as workers would have to pay more taxes. It would add to the country's overall economic health as the goods and services would grow along with more economic prosperity. The country's overall GDP would increase, causing the country's standard of living to rise (Minimum Wage: Good for Workers, Businesses). In addition, the raising of the country’s GDP would help businesses reduce their training cost as it would help employee turnover. Raising the minimum wage would allow companies to " increase productivity and customer satisfaction” (Should the Federal Minimum Wage Be Increased? 15 Pros and Cons). The increase in productivity and customer satisfaction would allow businesses to produce and sell more products, leading to a more stable income. 

It could be argued that raising the minimum wage would cause inflation because it would inflate the market, and prices would go up, which is true. However, the minimum wage has failed low-income workers. The minimum wage has not been raised since 2009. It has been 13 years since the federal minimum wage has been raised. Contrary to the minimum wage, “Since2009, inflation has increased by 11%” (Lenahan). As inflation has increased, minimum wage workers have still had to deal with the same 7.25 federal wage, meaning having to sacrifice time with their family and loved ones to afford to live. 

The time to act is now. The minimum wage should no longer stay stagnant while families suffer and income inequality is at an all-time high. Inflation is at its peak currently, and workers will no longer stand the abuse of their time and effort for a wage that is no longer livable. The minimum wage increase would not only help reduce poverty for workers, but it would allow the economy to grow and flourish.

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Fact Sheet | Wages, Incomes, and Wealth

Why the U.S. needs a $15 minimum wage : How the Raise the Wage Act would benefit U.S. workers and their families

Fact Sheet • January 26, 2021

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This fact sheet was updated February 19 with a new section on tipped workers .

The federal minimum hourly wage is just $7.25 and Congress has not increased it since 2009. Low wages hurt all workers and are particularly harmful to Black workers and other workers of color, especially women of color, who make up a disproportionate share of workers who are severely underpaid. This is the result of structural racism and sexism, with an economic system rooted in chattel slavery in which workers of color—and especially women of color—have been and continue to be shunted into the most underpaid jobs. 1

This fact sheet was produced in collaboration with the National Employment Law Project .

The Raise the Wage Act of 2021 would gradually raise the federal minimum wage to $15 an hour by 2025 and narrow racial and gender pay gaps. Here is what the Act would do:

• Raise the federal minimum wage to $9.50 this year and increase it in steps until it reaches $15 an hour in 2025. 2
• After 2025, adjust the minimum wage each year to keep pace with growth in the median wage, a measure of wages for typical workers.
• Phase out the egregious subminimum wage for tipped workers, which has been frozen at a meager $2.13 since 1991. 3
• Sunset unacceptable subminimum wages for workers with disabilities employed in sheltered workshops and for workers under age 20.

The benefits of gradually phasing in a $15 minimum wage by 2025 would be far-reaching, lifting pay for tens of millions of workers and helping reverse decades of growing pay inequality.

The Raise the Wage Act would have the following benefits: 4

• Gradually raising the federal minimum wage to $15 by 2025 would lift pay for 32 million workers—21% of the U.S. workforce .
• Affected workers who work year round would earn an extra $3,300 a year —enough to make a tremendous difference in the life of a cashier, home health aide, or fast-food worker who today struggles to get by on less than $25,000 a year.
• A majority (59%) of workers whose total family income is below the poverty line would receive a pay increase if the minimum wage were raised to $15 by 2025.
• A $15 minimum wage would begin to reverse decades of growing pay inequality between the most underpaid workers and workers receiving close to the median wage, particularly along gender and racial lines. For example, minimum wage increases in the late 1960s explained 20% of the decrease in the Black–white earnings gap in the years that followed, whereas failures to adequately increase the minimum wage after 1979 account for almost half of the increase in inequality between women at the middle and bottom of the wage distribution. 5
• A $15 minimum wage by 2025 would generate $107 billion in higher wages for workers and would also benefit communities across the country. Because underpaid workers spend much of their extra earnings, this injection of wages will help stimulate the economy and spur greater business activity and job growth .

Raising the minimum wage to $15 will be particularly significant for workers of color and would help narrow the racial pay gap.

• Nearly one-third (31%) of African Americans and one-quarter (26%) of Latinos would get a raise if the federal minimum wage were increased to $15. 6
• Almost one in four (23%) of those who would benefit is a Black or Latina woman.
• African Americans and Latinos are paid 10%–15% less than white workers with the same characteristics, so The Raise the Wage Act will deliver the largest benefits to Black and Latino workers: about $3,500 annually for a year-round worker. 7
• Minimum wage increases in the 1960s Civil Rights Era significantly reduced Black–white earnings inequality and are responsible for more than 20% of the overall reduction in later years. 8

The majority of workers who would benefit are adult women—many of whom have attended college and many of whom have children.

• More than half (51%) of workers who would benefit are adults between the ages of 25 and 54; only one in 10 is a teenager.
• Nearly six in 10 (59%) are women.
• More than half (54%) work full time.
• More than four in 10 (43%) have some college experience.
• More than a quarter (28%) have children.

The Raise the Wage Act follows the lead of the growing number of states and cities that have adopted significant minimum wage increases in recent years, thanks to the ‘Fight for $15 and a union’ movement led by Black workers and workers of color.

• Since the Fight for $15 was launched by striking fast-food workers in 2012, 9 states representing approximately 40% of the U.S. workforce —California, Connecticut, Florida, Illinois, Maryland, Massachusetts, New Jersey, New York, Virginia, and the District of Columbia— have approved raising their minimum wages to $15 an hour . 10
• Additional states—including Washington, Oregon, Colorado, Arizona, New Mexico, Vermont, Missouri, Michigan, and Maine—have approved minimum wages ranging from $12 to $14.75 an hour . 11

Not just on the coasts, but all across the country, workers need at least $15 an hour today .

• Today, in all areas across the United States, a single adult without children needs at least $31,200—what a full-time worker making $15 an hour earns annually—to achieve a modest but adequate standard of living. 12 By 2025, workers in these areas and those with children will need even more, according to projections based on the Economic Policy Institute’s Family Budget Calculator . 13
• For example, in rural Missouri, a single adult without children will need $39,800 (more than $19 per hour for a full-time worker) by 2025 to cover typical rent, food, transportation, and other basic living costs.
• In larger metro areas of the South and Southwest—where the majority of the Southern population live—a single adult without children will also need more than $15 an hour by 2025 to get by: $20.03 in Fort Worth, $21.12 in Phoenix, and $20.95 in Miami.
• In more expensive regions of the country, a single adult without children will need far more than $15 an hour by 2025 to cover the basics: $28.70 in New York City, $24.06 in Los Angeles, and $23.94 in Washington, D.C.

Workers in many essential and front-line jobs struggle to get by on less than $15 an hour today and would benefit from a $15 minimum wage.

• Essential and front-line workers make up a majority (60%) of those who would benefit from a $15 minimum wage. 14 The median pay is well under $15 an hour for many essential and front-line jobs; examples include substitute teachers ($13.84), nursing assistants ($14.26), and home health aides ($12.15). 15
• More than one-third (35%) of those working in residential or nursing care facilities would see their pay increase , in addition to home health aides and other health care support workers.
• One in three retail-sector workers (36%) would get a raise, including 42% of workers in grocery stores.
• More than four in 10 (43% of) janitors, housekeepers, and other cleaning workers would benefit.
• Nearly two-thirds (64%) of servers, cooks, and other food preparation workers would see their earnings rise by $5,800 on a year-round basis.
• Ten million workers in health care, education, construction, and manufacturing would see a raise —representing nearly one-third (31%) of the workers who would see a raise.

Phasing out the egregiously low $2.13 minimum wage for tipped workers would lift pay, provide stable paychecks, and reduce poverty for millions of tipped workers.

• There are 1.3 million tipped workers throughout the country who are paid as little as $2.13 per hour because Congress has not lifted the federal tipped wage in 30 years. Another 1.8 million tipped workers receive wages above $2.13, but still less than their state’s regular minimum wage. 16
• Seven states (Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington) have already eliminated their lower tipped minimum wage . In these “one-fair-wage” states, tipped workers in these states are paid the same minimum wage as everyone else before tips. 17 For restaurant servers and bartenders, take-home pay in one-fair-wage states is 21% higher, on average, than in $2.13 states.
• Having a lower minimum wage for tipped jobs results in dramatically higher poverty rates for tipped workers. In states that use the federal $2.13 tipped minimum wage, the poverty rate among servers and bartenders is 13.3%—5.6 percentage points higher than the 7.7% poverty rate among servers and bartenders in one-fair-wage states. 18
• Eliminating the lower tipped minimum wage has not harmed growth in the restaurant industry or tipped jobs. From 2011 to 2019, one-fair-wage states had stronger restaurant growth than states that had a lower tipped minimum wage—both in the number of full-service restaurants (17.5% versus 11.1%) and in full-service restaurant employment (23.8% versus 18.7%). 19

Growing numbers of business owners and organizations have backed a $15 minimum wage.

• In states that have already approved $15 minimum wages, business organizations representing thousands of small businesses have endorsed a $15 minimum wage.
• Business groups that have endorsed a $15 minimum wage include Business for a Fair Minimum Wage, 20 the American Sustainable Business Council, 21 the Patriotic Millionaires, 22 the Greater New York Chamber of Commerce, 23 the Long Island African American Chamber of Commerce, 24 and others.
• Growing numbers of employers have responded to pressure from workers and raised their starting pay scales to $15 or higher. These include retail giants Amazon, 25 Whole Foods 26 (owned by Amazon), Target, 27 Walmart, 28 Wayfair, 29 Costco, 30 Hobby Lobby, 31 and Best Buy; 32 employers in the food service and producing industries, such as Chobani, 33 Starbucks, 34 Sanderson Farms (Mississippi), 35 and the Atlanta-area locations of Lidl grocery stores; 36 health care employers including Michigan’s Henry Ford Health System 37 and Trinity Health System, 38 Ohio’s Akron Children’s Hospital 39 and Cincinnati Children’s Hospital Medical Center, 40 Iowa’s Mercy Medical Center and MercyCare Community Physicians, 41 Missouri’s North Kansas City Hospital and Meritas Health, 42 and Maryland’s LifeBridge Health; 43 insurers and banks such as Amalgamated Bank, 44 Allstate, 45 Wells Fargo, 46 and Franklin Savings Bank in New Hampshire 47 ; and tech and communications leaders such as Facebook 48 and Charter Communications. 49

Our economy can more than afford a $15 minimum wage.

• Workers earning the current federal minimum wage are paid less per hour in real dollars than their counterparts were paid 50 years ago . 50
• Businesses can afford to pay the most underpaid worker in the U.S. today substantially more than what her counterpart was paid half a century ago. 51
• The economy has grown dramatically over the past 50 years, and workers are producing more from each hour of work, with productivity nearly doubling since the late 1960s . If the minimum wage had been raised at the same pace as productivity growth since the late 1960s, it would be over $20 an hour today . 52

Research confirms what workers know: Raising wages benefits us all.

• High-quality academic scholarship confirms that modest increases in the minimum wage have not led to detectable job losses . 53
• After the federal minimum wage was raised to its highest historical peak in 1968, wages grew and racial earnings gaps closed without constricting employment opportunities for underpaid workers overall. 54
• Comprehensive research on 138 state-level minimum wage increases shows that all underpaid workers benefit from minimum wage increases, not just teenagers or restaurant workers. 55
• Multiple studies conclude that total annual incomes of families at the bottom of the income distribution rise significantly after a minimum wage increase. 56 Workers in low-wage jobs and their families benefit the most from these income increases, reducing poverty and income inequality.
• By providing families with higher incomes, minimum wage increases have improved infant health and also reduced child abuse and teenage pregnancy . 57

An immediate increase in the minimum wage is necessary for the health of our economy.

• Raising the minimum wage now will tilt the playing field back toward workers who have dangerous jobs and little bargaining power during the pandemic. 58
• Providing underpaid workers with more money will directly counter the consumer demand shortfall during this recession. 59
• Even the Congressional Budget Office’s 2019 study of the impact of raising the federal minimum wage to $15 by 2025 clearly showed that the policy would raise incomes of underpaid workers overall and significantly reduce the number of families in poverty. 60

Low wages threaten the economic security of workers and their families, who then turn to social benefits programs to make ends meet.

• In states without laws to raise the minimum wage to $15, nearly half (47%, or 10.5 million) of families of workers who would benefit from the Act rely on public supports programs in part because they do not earn enough at work. 61
• These workers and their families account for nearly one-third of total enrollment in one or more public supports programs. 62
• In states without a $15 minimum wage law, public supports programs for underpaid workers and their families make up 42% of total spending on Medicaid and CHIP (the Children’s Health Insurance Program), cash assistance (Temporary Assistance for Needy Families, or TANF), food stamps (Supplemental Nutrition Assistance Program, or SNAP), and the earned income tax credit (EITC), and cost federal and state taxpayers more than $107 billion a year . 63

Notes and Sources

This fact sheet is an update of Why America Needs a $15 Minimum Wage , published by EPI and the National Employment Law Project, February 2019.

Unless otherwise indicated, the figures presented in this fact sheet come from a forthcoming EPI analysis of the 2021 Raise the Wage Act .

1. Kate Bahn and Carmen Sanchez Cumming, “ Four Graphs on U.S. Occupational Segregation by Race, Ethnicity, and Gender ,” Washington Center for Equitable Growth, July 1, 2020.

2. The analysis is based on the 2021 Raise the Wage Act.

3. Sylvia Allegretto and David Cooper, Twenty-Three Years and Still Waiting for Change: Why It’s Time to Give Tipped Workers the Regular Minimum Wage , Economic Policy Institute, July 2014.

4. Estimated effects of the 2021 Raise the Wage Act throughout this fact sheet are from a forthcoming Economic Policy Institute analysis of the legislation and include benefits for both directly affected workers (those who would otherwise earn less than $15 per hour in 2025) and indirectly affected workers (those who would earn just slightly above $15 in 2025).

5. Ellora Derenoncourt and Claire Montialoux, “ Minimum Wages and Racial Inequality ,” Quarterly Journal of Economics 136, no. 1 (February 2021); David Autor, Alan Manning, and Christopher L. Smith, “ The Contribution of the Minimum Wage to U.S. Wage Inequality over Three Decades: A Reassessment ,” American Economic Journal: Applied Economics 8, no. 1 (January 2016).

6. See also Laura Huizar and Tsedeye Gebreselassie, What a $15 Minimum Wage Means for Women and Workers of Color , National Employment Law Project, December 2016.

7. For racial/ethnic wage gaps, see Appendix Table 1 of Elise Gould, State of Working America Wages 2019 , Economic Policy Institute, February 2020.

8. Ellora Derenoncourt and Claire Montialoux, “ Minimum Wages and Racial Inequality ,” Quarterly Journal of Economics 136, no. 1 (February 2021).

9. Alina Selyukh, “ ‘Gives Me Hope’: How Low-Paid Workers Rose up Against Stagnant Wages ,” National Public Radio’s All Things Considered , February 26, 2020; Kimberly Freeman Brown and Marc Bayard, “ Editorial: The New Face of Labor, Civil Rights is Black & Female ,” NBC News, September 7, 2015; Amy B. Dean, “ Is the Fight for $15 the Next Civil Rights Movement? ” Al Jazeera America , June 22, 2015.

10. Economic Policy Institute calculation using Current Employment Statistics data from the Bureau of Labor Statistics. Values calculated using the listed states’ share of total U.S. nonfarm employment in calendar year 2019 (prior to the COVID-19 pandemic). For recent minimum wage changes, see the Economic Policy Institute Minimum Wage Tracker, https://www.epi.org/minimum-wage-tracker/ . We include the District of Columbia in this list even though it is not a state.

11. Yannet Lathrop, Impact of the Fight for $15: $68 Billion in Raises, 22 Million Workers , National Employment Law Project, November 2018.

12. Based on calculations from the Economic Policy Institute’s Family Budget Calculator , which measures the income a family needs to attain a secure yet modest standard of living in all counties and metro areas across the country.

13. Congressional Budget Office projections for the consumer price index were applied to the Economic Policy Institute’s Family Budget Calculator .

14. Economic Policy Institute analysis of the legislation, forthcoming.

15. Bureau of Labor Statistics, Occupational Employment Statistics, May 2019 National Occupational Employment and Wage Estimates United States (online database).

16. Economic Policy Institute analysis of Current Population Survey outgoing rotation group microdata, 2017–2019

17. Economic Policy Institute analysis of Current Population Survey outgoing rotation group microdata, 2017–2019

18. Economic Policy Institute analysis of Current Population Survey outgoing rotation group microdata, 2017–2019

19.  Quarterly Census of Employment and Wages, 2011–2019.

20. Business for a Fair Minimum Wage, “ Federal Business for a Fair Minimum Wage—$15: Signatories List in Formation ,” accessed January 22, 2021.

21. Business for a Fair Minimum Wage, “ Federal Business for a Fair Minimum Wage—$15: Signatories List in Formation ,” accessed January 22, 2021.

22. Patriotic Millionaires, “ Endorsed Bill: The Raise the Wage Act ,” accessed January 22, 2021.

23. Greater New York Chamber of Commerce, “ Celebrating Juneteenth ,” June 18, 2020.

24. Kate King, “ New York Boosts Minimum Wage and Some Businesses Balk ,” Wall Street Journal , January 4, 2021.

25. Arjun Panchadar, “ Amazon Raises Minimum Wage to $15, Urges Rivals to Follow ,” Reuters , October 2, 2018.

26. Abha Bhattarai, “ Amazon Boosts Minimum Wage to $15 for All Workers Following Criticism ,” Washington Post , October 2, 2018.

27. Melissa Repko, “ Target Raises Minimum Wage to $15 an Hour Months Before its Deadline ,” CNBC , June 17, 2020.

28. Michael Grothaus, “ Walmart Is Giving 165,000 Employees a Pay Raise Between $15 and $30 per Hour ,” Fast Company , September 18, 2020.

29. Lucia Maffei, “ Wayfair Sets $15 Minimum Wage for All U.S. Workers ,” MassLive , January 8, 2021.

30. Sarah Nassauer and Micah Maidenberg, “ Costco Raises Minimum Wage to $15 an Hour ,” Wall Street Journal , March 6, 2019.

31. Hobby Lobby, “ Hobby Lobby Raises Minimum Wage ” (press release), September 14, 2020.

32. Gillian Friedman, “ Best Buy to Join Retailers Paying a $15 Minimum Wage ,” New York Times , July 22, 2020.

33. Chobani, “ Chobani Increases Employees’ Starting Wage to at Least $15/Hour ,” (PR Newswire release), Vending Marketwatch , October 30, 2020.

34. Janine Puhak, “ Starbucks to Raise Minimum Wage to $15 for US Employees over Next Three Years ,” WDRB.com , December 12, 2020.

35. Sanderson Farms, “ Sanderson Farms Increases Pay Rates for Hourly Employees ” (press release), June 3, 2019.

36. Kara McIntyre, “ Lidl to Raise Atlanta-Area Starting Pay to $15 An Hour ,” Patch (Atlanta, Ga.), January 5, 2021.

37. Henry Ford Health System, “ Henry Ford Among the First Michigan Health Systems to Raise Minimum Pay Rate to $15 Per Hour ” (press release), October 9, 2020.

38. Michael Kransz, “ Michigan Health System with 8 Hospitals Increases Minimum Wage to $15 an Hour ,” MLive.com , October 19, 2020.

39. Betty Lin-Fisher, “ Akron Children’s Hospital to Raise Its Minimum Wage to $15 ,” Akron Beacon Journal , October 3, 2019.

40. Kelly Gooch, “ Ohio Children’s Hospital to Boost Minimum Pay for 3,000 Employees ,” Becker’s Hospital Review , October 3, 2019.

41. Michaela Ramm, “ Mercy Announces Minimum Wage Increase, General Pay ,” The Gazette , December 22, 2020.

42. North Kansas City Hospital, “ North Kansas City Hospital and Meritas Health Raise Minimum Base Wage ,” December 21, 2020.

43. LifeBridge Health, “ Lifebridge Health Raises Minimum Living Wage for Hospital Team Members to $15 an Hour ” (press release), Greater Baltimore Committee, January 8, 2021.

44. Amalgamated Bank, “ Fight for $15 ” (web page), accessed January 22, 2021.

45. Amanda Mull, “ Corporations’ Social Crusades Often Leave Out Workers ,” The Atlantic , June 28, 2019.

46. Wells Fargo, “ Wells Fargo to Raise Minimum Hourly Pay Levels in a Majority of Its U.S. Markets ” (news release), March 4, 2020.

47. Scott Souza, “ Franklin Savings Bank Raises Minimum Wage in NH To $15 ,” Patch (Merrimack, N.H.), October 31, 2019.

48. Tomi Kilgore, “ Facebook Raising Minimum Wage to $20 Per Hour for Bay Area, New York and D.C. ” MarketWatch , May 13, 2019.

49. Charter Communications, “ Charter Statement Regarding Plans to Permanently Raise Minimum Wage to $20/Per Hour over Next Two Years for All Hourly Employees ,” April 6, 2020.

50. David Cooper, Raising the Federal Minimum Wage to $15 by 2024 Would Lift Pay for Nearly 40 Million Workers , Economic Policy Institute, February 2019.

51. David Cooper, Raising the Federal Minimum Wage to $15 by 2024 Would Lift Pay for Nearly 40 Million Workers , Economic Policy Institute, February 2019.

52. David Cooper, Raising the Federal Minimum Wage to $15 by 2024 Would Lift Pay for Nearly 40 Million Workers , Economic Policy Institute, February 2019.

53. Paul J. Wolfson and Dale Belman, “ 15 Years of Research on U.S. Employment and the Minimum Wage ,” Tuck School of Business Working Paper no. 2705499, 2016.

54. Ellora Derenoncourt and Claire Montialoux, “ Minimum Wages and Racial Inequality ,” Quarterly Journal of Economics 136, no. 1 (February 2021).

55. Doruk Cengiz, Arindrajit Dube, Attila Lindner, and Ben Zipperer, “The Effect of Minimum Wages on Low-Wage Jobs: Evidence from the United States Using a Bunching Estimator,” Quarterly Journal of Economics 134, no. 9 (May 2019).

56. Arindrajit Dube, “ Minimum Wages and the Distribution of Family Incomes ,” American Economic Journal: Applied Economics 11, no. 4 (October 2019); Kevin Rinz and John Voorheis, “ The Distributional Effects of Minimum Wages: Evidence from Linked Survey and Administrative Data .” U.S. Census Bureau Center for Administrative Records Research and Applications Working Paper 2018-02, 2018.

57. George L. Wehby, Dhaval M. Dave, and Robert Kaestner, “Effects of the Minimum Wage on Infant Health,” Journal of Policy Analysis and Management 39, no. 2 (Spring 2020); Kerri M. Raissian and Lindsey Rose Bullinger, “Money Matters: Does the Minimum Wage Affect Child Maltreatment Rates?” Children and Youth Services Review 72 (January 2017); Lindsey Rose Bullinger, “The Effect of Minimum Wages on Adolescent Fertility: A Nationwide Analysis,” American Journal of Public Health , March 2017.

58. Peter Dorman and Lawrence Mishel, “ A Majority of Workers Are Fearful of Coronavirus Infections at Work, especially Black, Hispanic, and Low- and Middle-income Workers ,” Working Economics Blog (Economic Policy Institute), June 16, 2020.

59. Cristian Alonso, “ Beyond Labor Market Outcomes: The Impact of the Minimum Wage on Nondurable Consumption ,” Journal of Human Resources , forthcoming.

60. Ben Zipperer, “ Low-Wage Workers Will See Huge Gains from Minimum Wage Hike, CBO Finds ,” Working Economics Blog (Economic Policy Institute), July 9, 2019.

61. Ken Jacobs, Ian Eve Perry, and Jenifer MacGillvary, The Public Cost of a Low Federal Minimum Wage , University of California Berkeley, Labor Center, January 2021.

62. Ken Jacobs, Ian Eve Perry, and Jenifer MacGillvary, The Public Cost of a Low Federal Minimum Wage , University of California Berkeley, Labor Center, January 2021.

63. Ken Jacobs, Ian Eve Perry, and Jenifer MacGillvary, The Public Cost of a Low Federal Minimum Wage , University of California Berkeley, Labor Center, January 2021.

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To Fight Poverty, Raise the Minimum Wage? Or Abolish It?

The minimum wage has stagnated at $7.25 an hour for more than a decade. is increasing it to $15 the best way to fight poverty.

[MUSIC PLAYING]

Today on The Argument, what’s the downside to paying people more? [MUSIC PLAYING] Among the most popular and blunt tools to fight poverty is a minimum wage, but it doesn’t actually do that. Because if you have a full-time job that pays the federal minimum wage of $7.25, you’re only making about $15,000 a year, not enough to rent a one-bedroom apartment in 95% of counties in the United States. Raising the federal minimum to $15 an hour is something progressives have been fighting for for years. They came close this month, but an amendment to raise the minimum wage was ultimately removed from Biden’s COVID relief bill. Is raising the minimum wage or having one at all the right way to battle poverty? I’m Jane Coaston, and I think it’s past time to raise the minimum wage. It’s not a way station for 16-year-olds. For millions of Americans, including parents with small children, it’s how they make ends meet. More people across the political spectrum are beginning to support a higher minimum wage, but it does have opposition. So I’ve invited two guests who are on different sides of the debate. Saru Jayaraman is the president of One Fair Wage and director of the Food Labor Research Center at the University of California Berkeley. Jeff Miron is the head of undergraduate and graduate economic studies at Harvard and head of economics at the Cato Institute. [MUSIC PLAYING]

Hi, Saru. Thanks so much for joining.

Thank you so much for having me.

And hey, Jeff, thanks so much for being here.

My pleasure. Thank you.

Here’s what I want to get out of this conversation. I want to have this conversation in two pieces. First, I want to talk specifically about the $15 minimum wage, hear both of your positions, and then get into what the arguments for and against a wage hike are. And then I want to zoom out and talk about raising the minimum wage as part of an overall suite of policies aimed at lifting people out of poverty. We’re going to go over some other options and talk about what’s actually being considered and what’s actually possible. So Saru, what’s your position on the $15 minimum wage?

So I think it’s important to understand the full scope of what’s being proposed. The Raise the Wage Act not only would raise the minimum wage to $15 an hour over several years, but it would also eliminate the sub-minimum wage for tipped workers, which is literally a legacy of slavery, the sub-minimum wage for workers with disabilities, which is a direct reflection of the valuation of people with disabilities, and youth. The current federal minimum wage is $7.25 for all workers and $2.13 an hour for tipped workers, and it is cents — literally less than $1 — for workers with disabilities. Our position is, of course, that that is not just low, it actually creates severe poverty, economic instability. It has created just horrific suffering during the pandemic. With — in the case of the sub-minimum wage for tipped workers, it’s also been a source of horrific sexual harassment because you have a largely female workforce living off of tips as a portion of their base wage, and that $15 is actually the minimum that’s necessary to live, particularly given that this workforce of minimum wage workers are adults. Median age is in the 30s. They have children, and they are struggling to survive, often working multiple jobs on these poverty wages. So we strongly support phasing in the raise of the minimum wage over time.

Jeff, where do you stand on this issue?

So I’m opposed to raising the minimum wage to $15 an hour. I’m, in fact, opposed to government mandating any minimum wage at all.

You wrote in 2014 that the right minimum wage is not $10.10 or $7.25. It’s zero. Why?

For a bunch of reasons. First of all, the minimum wage is trying, mainly, to tackle an issue of people having low income. But it does not address, the people with the lowest income, namely, people who don’t have jobs in the first place. It’s raising the wage of people who are already employed who may have low or very low income, but they’re not the poorest members of society. In my view, government anti-poverty efforts should be focused exactly on the people who are the worst off. Minimum wage is very poorly targeted for doing that because it starts off by only affecting people who are employed who have jobs. Secondly, it’s going to, in some instances, have a very perverse effect if you’re trying to raise the wages, even if we accept that it’s focused on a group of people that have jobs. It’s going to cause employers to lay off some people or hire fewer people or work more unpleasant hours or cut other benefits or do various things that are going to make those jobs bad for some of the people that you’re trying to help, OK? In the case where it causes employers to hire fewer people, some people go from having a low wage to having a zero wage. That seems a very crude way of trying to alleviate poverty, even if the minimum wage has only a modest effect in reducing employment. There’s a huge, long controversy in economics about that. The bulk of the evidence does suggest there is a negative effect on employment, especially if you were to double the minimum wage, as is being proposed currently. But it may have other negative effects, such as raising the prices of the goods and services that these employers provide. That also is a regressive step, not a progressive step.

I’m just going to cut you off there because I really want to put this to Saru. Last month, the Congressional Budget Office put out a report on the impact of a $15 minimum wage, and it showed that a gradual increase to a $15 minimum wage could add $54 billion to the deficit, if you’re worried about that kind of thing. I know deficit spending — we don’t talk about that anymore. It’s not a thing. I don’t even know who she is. But it could also eliminate 1.4 million jobs because, as Jeff said, that could be added prices for food. That could be added prices in a lot of spaces that low-income people and all-income people might need. What’s your response to that?

You know, the press reported on that Congressional Budget Office report in a way that, I think, caused most people not to actually read the report. The actual CBO report, what it said is that we don’t know what the impact on jobs could be. The impact on jobs could actually be anywhere from 0 to close to 3 million jobs. We have no idea. And that 1.4 million number was an intermediate between zero and close to three. In fact, we looked at the seven states that require what we call one fair wage, a full minimum wage with tips on top, including California, which has passed a $15 minimum wage and full elimination of the sub-minimum wage for tipped workers. Those seven states — and by the way, they’re not all blue states. If you look at those states that have raised the minimum wage, those seven states, in particular for the restaurant industry — we looked at from 2011 to 2016 — we saw that those states actually had higher job growth rates in the restaurant industry. They all actually have the same or higher growth rates in the restaurant industry, in terms of jobs, as the rest of the country. And so it just hasn’t borne out in the seven states that got rid of the sub-minimum wage for tipped workers. It just hasn’t borne out in the evidence. In fact, the states with the highest wages have had the highest job growth rates in the restaurant industry. So what do they do when they get a minimum wage increase? They spend it, the economy is boosted, and more jobs are created. I also want to speak to the menu price issue because we’ve also studied this a lot. Actually, we’ve compared restaurants — the same restaurants, chains — in California compared to all other states, and the menu prices are exactly the same. These are publicly-traded companies. They wouldn’t undercut themselves. They wouldn’t grow in a state like California if they weren’t profitable.

Jeff, what do you think? Because I think that issue of, if you pay people more money, they have more money, they spend more money, that makes sense to me.

My best answer is that money came from some place. But let me also take a step further back, which is if you tell employers they have to pay a higher wage for some of their employees, what are the things that could happen? They could say, OK, that’s fine. I’ll just make less profits, OK? Or they could say, I’m going to reduce that kind of employment and substitute with higher-skilled people. I could substitute machinery for some of the less-skilled labor that I was paying this lower minimum wage at. They could raise their prices. It’s unlikely that they’re just going to do nothing and absorb that profit loss. They’re going to respond in some way, shape, or form, and all of those things make those markets less efficient, OK? It means that you’re distorting the decisions about whether to use, in producing a particular good or service, low-skilled labor or to substitute with a machine. Somebody is paying for it. It’s either reduced profits — OK, but then the business owners are going to respond in ways which try to recoup that, many of which are going to make those workers worse off, or at least undo some of the benefit they got from the higher wages, such as by adjusting their hours in ways that workers don’t like, cutting benefits, and all those sorts of things. So we can’t just give people more money without saying where we’re taking it from and then what the cost of that is and what the effects of that are going to be.

I’m thinking about not necessarily minimum wage jobs, but we’ve all heard of or even had jobs where in exchange for getting paid more, there is an expectation that, like, yes, you make more money, but you’re supposed to work far more hours. The expectations change. If that’s true for jobs I’ve had, this sounds like it would also be true for minimum wage positions. Wouldn’t, as Jeff said, companies just find another way to exploit workers? If they’re paying them more, they could hire fewer people or force them to do different and worse labor.

Now, I would totally agree with Jeff that, yes, this does come from somewhere. This is why I fundamentally cannot agree with the idea that there can’t be a minimum wage. Because employers, corporations, businesses need to pay their fair share of the cost and the value of the labor that they’re profiting from. That is a concept that we, as a country, decided on when we ended slavery in the United States of America. We decided, as a country, morally, that we believe employers should pay for the value of the labor that they are profiting from. Now, in the restaurant industry in particular, at emancipation, the restaurant lobby did not want to pay for the value of their labor, and so they mutated tipping from being an extra or bonus on top of the wage to becoming a replacement for wages, which by the way, before emancipation, waiters were paid a full wage. So the whole idea of employers paying for their labor is something that we, as a nation, have accepted. Now, what happens when the minimum wage goes up in the restaurant industry in California or in the states that have raised wages? They don’t necessarily just reduce jobs. That hasn’t been borne out in the data. They do actually figure out, to your point, Jeff, greater efficiencies. They figure out that when you pay people more, actually, they don’t leave you. They stay. We did a study with Cornell where we interviewed 1,100 restaurant managers, and they told us that when you raise wages, you cut the cost of employee turnover because, guess what? When you pay people more, they don’t have to keep moving and looking for different jobs. They stay with you. That’s less turnover, which costs in terms of the cost of recruitment and hiring and morale and training new people. So it actually pays off to pay people well, and that is part of the overall cost of doing business.

OK, I have to object really strongly to the notion that imposing this minimum wage is going to make businesses more efficient by reducing turnover or encouraging them to substitute capital in an efficient way. If those things were efficient, if they were profitable, the employers would have done them already. If you can reduce turnover by paying a little bit higher wage, then of course, employers will do that. And many employers do do that, precisely for the reasons you explained, but not when they’re forced to do it by the higher minimum wage. Take the example of substituting machinery for a lower-skilled employee. There’s a cost to the machinery. There’s a cost of the employees, of the wages. You make the calculation of which one is more profitable, and you do the one that makes sense. If it made sense to substitute capital, you would have done it already. OK, so I don’t think that argument is the least bit convincing, and it just doesn’t make logical sense that there’s all this profit opportunity that these big public corporations, whose sole objective in life is basically to make profits, that they’re leaving all this money on the table by not paying a wage which would get them to a more profitable outcome.

But isn’t there an argument that part of making more money is the public appearance of being a good corporate citizen? We’ve had a lot of conversations recently about big corporations attempting to position themselves on specific political issues. I’m thinking of Apple getting involved with the Religious Freedom Restoration Act about five or six years ago. Isn’t an element where, yes, there is kind of the brute capitalism, we need to make as much money as possible, but also, it can be a good business maneuver to advertise yourself as having a good corporate culture by having higher wages?

But then again, you don’t need the government to make businesses do it. If it’s good for business to do something which looks socially responsible, whether it has to do with global warming or the wages you pay or the benefits you pay, then businesses will do it on their own because the way you describe it, it’s in the interests of the business. The net effect on profits after taking account of the somewhat higher costs for wages, but having better PR, having more people like your company, et cetera, they’ll take that into account, and they’ll do it on their own.

But I do want to put that question to Saru because I live in DC, where we have a $15 minimum wage. Florida, as you mentioned, has passed one that will go into effect by 2026. New York and Seattle both have a $15 minimum wage. So if you have private businesses that are saying, it’s a good idea for us to look good on this particular front by having a higher minimum wage, if you have cities and states that are making these decisions, why do we need the federal government to set a higher minimum wage for all?

So the truth is that we’re talking about giving people a very basic floor that would allow them to survive, allow them to get off of public assistance, allow them to feed their families when they work full time or more than full time. Look, here’s the problem with the argument Jeff is making of let’s just leave it entirely to the market, let’s have no minimum wage at all. If it were, efficient companies would do it. Well, guess what? There are lots of things companies do that are inefficient, that are based on their biases, their desires, their opinions. Racism and racial discrimination is not actually market efficient. So it is not entirely always efficiency that drives employer choices. And to the point of publicly-traded companies and if it were so great to pay people more, why wouldn’t they do it? I’ll tell you why. It’s because publicly-traded companies look at quarterly returns. And so there are a ton of efficiencies that arise from paying the minimum wage. The problem is that the publicly-traded corporations aren’t able to see it because they are so focused on short-term gains. So the problem with not having a federal minimum wage is that you leave the states with the highest populations of people of color at the lowest wages, and that exacerbates racial inequity in our country.

I want to focus on one thing that Saru said, which is that I’m arguing for leaving everything to the market. I haven’t said this yet, but I want to make clear that the argument against the minimum wage is not an argument against the social safety net. It’s an argument that the minimum wage is a terrible way of trying to have a social safety net. The libertarian view, my view, is that if you want to make poor people less poor, you should give them money via mechanisms like food stamps, housing assistance, universal basic income because those provide people with income without distorting private markets and without having the ancillary negative consequences that the minimum wage has. So they’re separate questions. One question is whether to help people who are not in a good financial position. The other question is how. My position is that the minimum wage is a terrible way in which to do it because it has all these ancillary side effects and because it doesn’t very successfully target the poorest people, whereas a universal basic income does explicitly target the very poorest people.

I do just have to address what Jeff said about leaving it to the market. You’re not saying leave it entirely to the market, but you are saying leave wages to the market, which means —

Yes, I am saying that.

— an employer could pay — meaning an employer could pay zero if they want to.

No, because people wouldn’t work for zero.

Well, people are working for zero right now, Jeff —

If employers have all this power, why don’t they set a zero wage?

Can I finish my point, please?

I apologize.

So actually, there are restaurant owners right now requiring workers to live off of tips. It’s illegal. Workers often don’t complain because they are scared to. They face retaliation. They are very vulnerable. They are women. They are people of color. And during the pandemic, these workers who receive zero dollars an hour could not get a dime of unemployment insurance because they were forced to live off of tips. And here’s the basic problem with having it rely entirely on government programs, social safety nets — some really big problems with that. One, workers want to be able to work and feed their families with their earnings. These workers, as well, want the dignity of being able to work in their profession — and these are professions — and not have to rely on government assistance, which is heavily stigmatized, difficult to access. And they want that dignity of being able to be paid. So you, Jeff, are asking taxpayers to cover these people’s livelihoods. But what I’m saying is that employers have to pay their fair share. They have to cover the value of their labor, of the people who are doing the work that brings them profit. [MUSIC PLAYING]

Hi, Jane. This is Reggie from Brooklyn. And the thing I’ve been arguing about with my friends and employer is whether we should use nuclear power to reach our climate goals. I think nuclear energy is the cleanest, most reliable way to bridge the gap between where we are now and our hopefully zero-carbon future in the time we have left.

What are you arguing about with your family, your friends, your frenemies? Tell me about the big debate you’re having in a voicemail by calling 347-915-4324, and we might play an excerpt of it on a future episode. So Jeff, you’ve said something that really interested me earlier, as a libertarian, is that you talked about the social safety net and the idea that we don’t need to raise the minimum wage. What we do need are better ways to support the poor that aren’t that, so talking about improving welfare programs. But you’ve mentioned two ideas in other work that you’ve done, the negative income tax and expansion of the earned-income tax credit. Now, I think for many people, they may have heard of the earned-income tax credit, but can you explain what the negative income tax would look like?

So a negative income tax, which is, in all important ways, the same as a universal basic income, says that everybody is guaranteed a certain amount of income per quarter or per year, some basis like that. And then they face some tax rate on all income earned. The simplest way to describe it, which doesn’t feel right to many people, is to say we send a check for $5,000 to every single person, including Bill Gates and, you know, Warren Buffett, but we then impose taxes. So if you have no income of your own, you receive that $5,000 per year, and that’s your total net income. If you earn $10,000 and there’s a 30% tax rate, you would get the $5,000 directly from the government plus the $10,000 you’ve earned, minus the $3,000 you would owe in taxes. You never owe any taxes on the universal basic income, on the negative income tax. So the idea is we put a floor on the amount of income that every single person has. And it gradually, as you earn income that didn’t come from the government, you pay taxes on that. But nobody will ever have any income below that floor that the government creates.

So what you’re saying here is that employers who make big profits, whether that’s a Walmart or McDonald’s or even a, like, company that’s doing really well in Washington DC, like a brewery, like the one that is being loud near my apartment, they do not have the responsibility to redistribute money. But the government — the federal government — through this program could redistribute money. They could send out checks for $5,000 to every American. Why do employers not have that responsibility but the government does? That seems — I’m confused.

It’s basically a practical answer that if the government does it in roughly the way I described, it’s consistent. It applies to everyone. It happens sort of year after year after year because it’s a government policy that’s in place and it continues, unless Congress changes its mind. But trying to get private employers to do it ends up mainly enriching private employers or some sectors relative to others. The housing industry gets richer than it would otherwise be because the government is subsidizing the building of housing projects. Certain farmers get richer than they would otherwise be because the government subsidizes food stamps. The transferring income to people approach doesn’t create any special favors for this industry versus that. It doesn’t allow you to go to Washington and lobby them to produce the — more of the goods and services that your industry produces because that’s allegedly helping poor people. It avoids all the inefficiencies created by having a centrally planned — central planner dictate what’s produced and how firms behave. If I could go back to one thing that Saru said, she said several times, we agreed, when we ended slavery, that we owe everyone a fair wage.

I don’t remember — or something like that.

We agreed that employers need to pay for the value of their labor, that they don’t get to —

When did we agree that?

That’s not in the Constitution. That’s not in a federal law.

Because we said —

Who agreed to that?

Because we said that employers should not be able to use free labor. That is what slavery was.

No, they should not be able to coerce free labor.

We agreed, as a country —

Outlawing slavery is not saying that someone can’t offer you a teeny wage and you agree to accept it. It’s saying that you can’t, using physical force, make people work for you for nothing.

And I would argue that because of the forced options that most people in this country on the minimum wage have, they are forced into very low-wage jobs, that their life situations have forced them into low-wage jobs that don’t give them the opportunities. When you’re working two and three jobs, you don’t actually have the time to go to college and get a degree and move up the ladder. So let me just say, one thing you said, Jeffrey, is just plain wrong. The idea that food stamps have not actually created inefficiencies and have not bred an industry or a sector that has profited off of food stamps is just plain wrong. The data shows that, actually, Walmart has profited quite a bit from food stamps. They —

That’s exactly my point.

OK, yeah, so —

I completely agree. That’s what I was saying. I totally agree with it.

Yeah, so Saru, like, the idea would be that you would have something that look kind of like Alaska’s Permanent Fund, which sends everyone in Alaska a check, or a dividend of some sort, which is that if you sent everyone in America a $5,000 check — everyone, every single person — and had that instead of food stamps, which as Jeff said, he argues have massive inefficiencies, you could wipe — use that instead of those programs. I’m interested to see your thoughts on that.

Yeah, my point is that we know, from situations like that, inefficiencies still will occur, even when people are given those checks. Because again, people at the lower end of the income spectrum have to spend those checks to survive on things like rent, which goes to developers, and food, which goes to grocery stores. There still will be inefficiencies. But here’s the bottom line. Employers — by doing that, by just providing everybody with $5,000, you completely remove any responsibility from employers to actually pay for, again, the people that are allowing them to create profit. The people who work for them generate the actual profit. And so employers should have the responsibility, rather than just taxpayers —

So I am saying that the employer should not bear this responsibility. I think it ends up being an incredibly inefficient way to try to accomplish the goal. I completely accept that some people have been forced by the conditions of the market and their luck and misfortunes of whatever their circumstances are to have very few opportunities, and I accept that there are people who have terrible circumstances. But I think the best way to do it is not by trying to make the employers responsible for it but letting their employers be responsible for maximizing efficiency and producing the most. First, that gives you the biggest economic pie available to redistribute to the people who deserve it, and they are not completely absolved because they pay taxes.

Not anymore.

No matter what the structure of the business taxes, they are ultimately paid by people, and the people are paying taxes that supports the transfers to those people who are deemed deserving by society’s judgments.

Saru, I noticed that you laughed a little bit when he talked about big corporations paying taxes. But I want to get at something. We appear to agree that there are, in our current system, a lot of inefficiencies that are bad. And we’re in a situation, and it is a situation, Jeff, as a libertarian, in which you are often in, which is that no one agrees with us and no one listens to us. No Republicans support raising the minimum wage to $15 an hour, so what are some other alternatives that could get us closer to poverty mitigation that could work with what we currently have in Congress, where we’re dealing with Democrats who are saying, we are supportive of raising the minimum wage, but the Republicans who are in Congress are not the people who are interested in thinking about poverty mitigation the same way we’re — you know, they’re not talking about a UBI. They are talking about tax cuts. When you’re thinking about either making the case for raising the minimum wage to Republicans or thinking about other ideas for poverty mitigation, where do you go?

So one thing that, actually, we have been able to agree with on — with some libertarians and Republicans is that we do need to reduce people’s dependence on public assistance, actually. And it is shown that raising the minimum wage reduces people’s dependence on food stamps, on other forms of public assistance. So raising the minimum wage reduces the burden on the taxpayer, on the government by allowing employers to pay their fair share and then reducing people’s dependence on public assistance. That is one area that we have in common with some Republicans.

Let me say a few things. First, I don’t want to leave the impression that libertarians advocate adding a universal basic income on top of the current social safety net. Libertarians think that if we could replace the existing social safety net with the universal income, that is plausibly an improvement. But many libertarians would still have severe qualms about the existing generosity of the current social safety net. They would say there might be — maybe there’s a role for some. It probably shouldn’t be federal. It should be left to states. It should probably be less generous — just so I don’t mislead. But on your question of what other things can be done to help people who are poor, libertarians have a few things that they emphasize quite a bit, which is repeal of regressive regulation. Lots of regulations are especially bad for poor people. This includes land-use regulation, which makes it hard for people to afford housing because you restrict the density of buildings, the heights of buildings, building more in inner cities. That forces people with lower incomes to live farther away, to have longer commutes, to have less access to jobs, to stores, and so on. Similar issues with occupational licensing, has effects of two kinds. One, it keeps relatively poor people from entering certain professions because they have to spend money or spend time getting degrees in order to practice those occupations. At the same time, those licensing restrictions raise the cost of the goods in those occupations of the — being produced by those occupations. And that, of course, has a bigger negative effect on people who are poor. And there are lots of other examples. Childcare regulation is another good one. There’s tons of regulation of childcare. Whom does that harm especially? Poor mothers, OK, who can’t easily afford daycare and be able to hold jobs because of the regulation, which raises costs so much.

Saru, I’m going to guess that you probably don’t think that these ideas should replace the fight for the $15 minimum wage and my efforts to join us all on one side of the argument. Eh, a little quixotic. But what’s your what’s your last point on this particular issue? Because I think that I agree with Jeff, the occupational licensing issue is particularly interesting because of how, in my own personal experience, it hinders African-American business owners. For instance, you can get into a very weird place with the licenses you need to do African hair braiding. But what is it about the $15 minimum wage that makes it your central issue and the central issue for this conversation?

The current debate is how much should the minimum wage be and should it apply equally to everybody in this country. And so therefore, 32 million Americans would get a raise from a $15 minimum wage. And by eliminating sub-minimum wages, we reduce racial inequity, legacies of slavery, and severe gender discrimination and harassment.

I just want to thank both of you so much for joining me. Saru Jayaraman is the president of One Fair Wage, a group that advocates for raising wages and working conditions for restaurant service workers. She’s also director of the Food Labor Research Center at the University of California Berkeley. Thank you so much for joining me.

Jeff Miron is a senior lecturer at Harvard and director of economic studies at the Cato Institute, a libertarian think tank based in Washington DC. Thank you for joining me, Jeff.

My pleasure. Thank you for having me. [MUSIC PLAYING]

If you want to learn more about the minimum wage, I recommend reading the full report from the Congressional Budget Office published in February about what Biden’s bill to raise the minimum wage $15 an hour would actually mean for jobs and the economy. And for the policy wonks — I know who you are — I also recommend the Bureau of Labor Statistics’ February report on the characteristics of minimum wage workers. You can find links to both of these reports in our episode notes. Finally, some of you called in with your own stories about student loan debt after last week’s episode.

Hi, my name is Kendra. I’m an African-American woman who graduated from George Washington University in 1997. My experience has been chronic oppression due to student loan debt accompanied by low to no income over several years. There should be complete forgiveness for those who have suffered such a burden. I’m Janelle from Vermont, and I have over $50,000 of student loans. There’s nothing I can do but continue to pay and hope that when I die, the remaining debt doesn’t carry on to my children.

The Argument is a production of New York Times Opinion. It’s produced by Phoebe Lett, Elisa Guttierez, and Vishakha Darbha, edited by Alison Bruzek and Paula Szuchman with original music and sound design by Isaac Jones and fact-checking by Michele Harris. [MUSIC PLAYING]

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The federal minimum wage of $7.25 an hour hasn’t changed since 2009. Workers in 21 states make the federal floor, which can be even lower for people who make tips. And at $7.25 an hour, a person working full time with a dependent is making below the federal poverty line.

[You can listen to this episode of “The Argument” on Apple , Spotify , Google or wherever you get your podcasts .]

States such as California, Florida, Illinois and Massachusetts have approved gradual minimum wage increases to reach $15 an hour — so is it time to do it at the federal level?

On Wednesday 20 senators from both parties are set to meet to discuss whether to use their influence on minimum wage legislation.

Economists have argued for years about the consequences of the hike, saying employers who bear the costs would be forced to lay off some of the very employees the minimum wage was intended to support. A report by the Congressional Budget Office on a proposal to see $15 by 2025 estimates the increase would move 900,000 people out of poverty — and at the same time cut 1.4 million jobs.

[ Instagram Live : Watch host Jane Coaston and Kara Swisher discuss whether we need to raise the minimum wage .]

On today’s episode, we debate the fight for $15 with two people who see things very differently. Saru Jayaraman is the president of One Fair Wage and the director of the Food Labor Research Center at the University of California, Berkeley. Jeffrey Miron is a senior lecturer in the department of economics at Harvard University and the director of economic studies at the Cato Institute.

Mentioned in this episode:

The Congressional Budget Office’s February 2021 report on the budgetary effects of the Raise the Wage Act of 2021.

The U.S. Bureau of Labor Statistics’ April 2020 report “Characteristics of Minimum Wage Workers.”

(A full transcript of the episode will be available midday on the Times website.)

Thoughts? Email us at [email protected] or leave us a voice mail message at (347) 915-4324. We want to hear what you’re arguing about with your family, your friends and your frenemies. (We may use excerpts from your message in a future episode.)

By leaving us a message, you are agreeing to be governed by our reader submission terms and agreeing that we may use and allow others to use your name, voice and message.

“The Argument” is produced by Phoebe Lett, Elisa Gutierrez and Vishakha Darbha and edited by Alison Bruzek and Paula Szuchman; fact-checking by Michelle Harris; music and sound design by Isaac Jones.

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Should We Raise The Minimum Wage?

Cardiff Garcia

Stacey Vanek Smith

Should We Raise the Minimum Wage?

Burr vs Hamilton. The Celtics vs the Lakers. Godzilla vs King Kong. To this list of famous rivalries you can now add: advocates of raising the minimum wage to 15 dollars an hour... versus opponents of raising it.

We have been watching economists duke it out on social media and in their papers, arguing for and against the idea. This is a topic where things can get heated, but it's also a really important and nuanced debate.

To show what's at stake, Stacey and Cardiff take sides on the minimum wage debate. Get ready for a fight over the minimum wage... with maximum rage!

Articles on Minimum Wage:

Characteristics of minimum wage workers (2019) , from the Bureau of Labor Statistics

How Increasing the Federal Minimum Wage Could Affect Employment and Family Income , from the Congressional Budget Office

Minimum Wages and Racial Inequality (paywall), by Ellora Derenoncourt and Claire Montialoux

Impacts of Minimum Wages: Review of the International Evidence , by Arindrajit Dube

City Limits: What do Local-Area Minimum Wages Do? , by Arindrajit Dube and Attila S. Linder

Racial Inequality and Minimum Wages in Frictional Labor Markets , by Jesse Wursten and Michael Reich

The Disparate Impact of a National $15 Minimum Wage , by Paul H. Kupiec

Myth or Measurement: What Does the New Minimum Wage Research Say about Minimum Wages and Job Loss in the United States? , by David Neumark and Peter Shirley

The Distributional Effects of Minimum Wages: Evidence from Linked Survey and Administrative Data , by Kevin Rinz and John Voorheis

The Economic Impact of a High National Minimum Wage: Evidence from the 1966 Fair Labor Standards Act , by Martha J. Bailey, John DiNardo, and Bryan A. Stuart

History of Changes to the Minimum Wage Law , from the Department of Labor

Why $15 Minimum Wage is Pretty Safe , by Noah Smith

The Minimum Wage Pushback , by Noah Smith

Minimum Wage Tracker , from The Economic Policy Institute

$15 Minimum Wage Subverts Biden Recovery Plan (paywall), by Michael R. Strain

How Can Price Theory Help Us Navigate the Minimum Wage Debate? , by Brian Albrecht

Pay Is Rising Fastest for Low Earners. One Reason? Minimum Wages. , by Ernie Tedeschi

Music by Drop Electric . Find us: Twitter / Facebook / Newsletter .

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Understanding the Minimum Wage

• Pros of Raising
• Cons of Raising

The Bottom Line

• Macroeconomics

What Are the Pros and Cons of Raising the Minimum Wage?

J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor.

The minimum wage is the lowest hourly rate that an employer can pay an employee according to law. Many states have minimum wages in place. But the federal minimum wage hasn't increased since 2009, despite many attempts to do so. The discussion around increasing the minimum wage brings both pros and cons.

As of January 2024, Washington had the highest state minimum wage rate at $16.28 per hour. Washington, D.C. has the highest rate overall at $17.00 an hour.

There's also a federal minimum wage at $7.25 an hour. Employers must pay minimum wage employees whichever rate is higher, so if the federal rate is higher than the state rate, an employee gets the federal minimum wage. The same is true if the state rate is higher.

Minimum wage laws have been in effect in the United States since 1938 when the first federal rate was set at $0.25 per hour. Amendments were made to the Fair Labor Standards Act (FLSA) since then, increasing the base rate of pay for many hourly workers according to inflation.

Key Takeaways

• Despite efforts to raise the minimum wage, no bill has successfully passed both chambers of Congress.
• Proponents of raising minimum wages argue that changes are needed to help incomes keep pace with increasing costs of living, and a higher minimum wage will lift millions out of poverty.
• Opponents of raising the minimum wage believe that higher wages could lead to inflation, make companies less competitive, and result in job losses.

As noted above, the term minimum wage refers to the legally established lowest amount that employers are required to pay their employees for their work. It serves as a baseline wage that is intended to ensure that workers receive fair compensation for their labor, covering basic living expenses and preventing the exploitation of low-wage workers.

The primary purpose of minimum wage is to provide workers with a level of income that allows them to meet their essential needs. It acts as a safeguard against extremely low wages and helps reduce poverty and income inequality within a society. By setting a minimum wage, governments aim to promote decent working conditions and provide a degree of economic security for workers.

National and sub-national government entities analyze several factors when considering whether to raise or maintain the current level of minimum wage. As the general increase in prices over time, inflation can erode purchasing power . Economic conditions such as the state of the economy may call for adjusted labor market dynamics. Social equity considerations may call for more livable wages. Regardless of the consideration, there are various reasons to support and detract from raising the minimum wage.

On Oct. 24, 1938, the first minimum hourly wage was put into effect. The wage rate was $0.25 per hour.

Pros of Raising the Minimum Wage

The primary argument advanced in favor of raising the minimum wage is that higher earnings would improve the overall standard of living for minimum wage workers by providing them with a more appropriate income level to handle the cost of living increases.

A 2022 study by the Congressional Budget Office analyzed the macroeconomic impact of the standard minimum wage reaching $15 per hour in 2027. The data reported that 10.9 million workers would be directly affected, while an additional 9.2 million workers would potentially be affected. The total directly or potentially affected workers by 2032 would surpass 23 million.

While some proponents of raising the minimum wage estimate that a much larger number of individuals and families will move out of poverty if they earn more money, a related potential benefit is a projected reduction in the need for federal and state government expenditures on financial aid for poor and low-income individuals.

Meanwhile, an intangible benefit that could translate into tangible benefits for both companies and employees is improved employee morale resulting from higher wages. Business owners frequently note the challenge of providing sufficient encouragement to spur workers to put maximum effort into their job duties, and that this is particularly problematic with low-wage workers who feel that their job efforts aren't keeping them out of poverty.

Increasing employee morale could easily translate into more tangible benefits, such as increased employee retention and reduced hiring and training costs. Employees who are more inclined to stay with a company longer could benefit from greater advancement and an overall reduction in job-related relocation expenses .

A boost to economic growth is another potential advantage of increasing the minimum wage, as consumer spending typically increases along with wages. A higher minimum wage would put more discretionary dollars in the pockets of millions of workers; money that would then flow to retailers and other businesses.

Lawmakers have tried to raise the federal minimum wage on many occasions. The U.S. House of Representatives passed an amended version of the Raise the Wage Act of 2019 in July of that year to gradually increase the federal minimum wage to $15 an hour by 2025. But the bill died in the Senate. President Joe Biden tried to increase the rate for federal contract workers to $15 per hour, but that motion was blocked by a U.S. district judge in September 2023.

Cons of Raising Minimum Wage

Among the disadvantages of increasing the minimum wage is the probable consequence of businesses increasing prices, thus fueling inflation .

Opponents argue that raising the minimum wage would likely result in wages and salaries increasing across the board, thereby substantially increasing operating expenses for companies that would then increase the prices of products and services to cover their increased labor costs.

Increased prices mean a general increase in the cost of living that could essentially negate any advantage gained by workers having more dollars in their pockets.

Though the current federal minimum wage in the U.S. is $7.25 per hour, 30 states and D.C. have approved higher minimum wages.

Another projected problem resulting from an increased minimum wage is that of potential job losses. Many economists and business executives who point out that labor is a major cost of doing business argue that businesses will be forced to cut jobs to maintain profitability.

The same 2022 study mentioned above by the Congressional Budget Office also analyzed how higher wages may result in the elimination of roles. By 2027, the CBO estimated that up to 1.6 million jobs would be lost. By 2032, this would increase to 1.9 million lost jobs.

One potentially negative impact that is less readily apparent is the possibility that a higher minimum wage would result in increased labor market competition for minimum wage jobs.

The net outcome of an increased minimum wage might be a large number of overqualified workers taking minimum wage positions that would ordinarily go to young or otherwise inexperienced workers. This could impede younger, less experienced entrants to the job market from obtaining work and gaining experience to move their careers forward.

How Does Minimum Wage Affect the Economy?

The impact of minimum wage on the economy is a complex issue. Supporters argue that increasing minimum wage can stimulate consumer spending and boost the overall economy by putting more money in the hands of low-wage workers. Critics, on the other hand, warn that higher labor costs might lead to job cuts, automation, and increased prices for goods and services.

Is Minimum Wage the Same for All Workers?

No, minimum wage laws often take into account different categories of workers. For example, there might be different minimum wage rates for adult workers, minors, or workers in specific industries. Tipped employees, like servers in restaurants, may also have a lower minimum wage due to the expectation of receiving tips .

Does Inflation Impact Minimum Wage?

Yes, inflation can erode the purchasing power of minimum wage over time. To address this, some governments index minimum wage to inflation rates. This means that the minimum wage is adjusted periodically to ensure that its real value remains relatively constant.

How Does Minimum Wage Affect Small Businesses?

The impact of minimum wage increases on small businesses can vary. Some small businesses might struggle to absorb the additional labor costs, potentially leading to layoffs or reduced hours. Others might adapt by increasing prices or finding operational efficiencies to mitigate the impact.

Do All Countries Have Minimum Wage Laws?

While minimum wage laws are prevalent in many countries, not all nations have implemented such legislation. The presence and level of minimum wage often depend on a country's economic structure, labor policies, and social priorities.

Raising the federal minimum wage to $15 an hour is a policy goal for many lawmakers. Increasing the minimum wage is expected to lift individuals out of poverty and improve work ethic, however, it also comes with many possible negative implications, such as inflation and a loss of jobs.

U.S. Department of Labor. " State Minimum Wage Laws ."

U.S. Department of Labor. " Minimum Wage ."

U.S. Department of Labor. " History of Federal Minimum Wage Rates Under the Fair Labor Standards Act, 1938-2009 ."

Congressional Budget Office. " How Increasing the Federal Minimum Wage Could Affect Employment and Family Income ."

The Brookings Institution. " How Family Sustaining Jobs Can Power an Inclusive Recovery in America’s Regional Economies ."

Berkeley Political Review. " No More Lies: The Truth About Raising the Minimum Wage ."

U.S. Congress. " H.R. 582 - Raise the Wage Act ."

Reuters. " Biden's $15 minimum wage for federal contractors blocked by US judge ."

U.S. Department of Labor. " Consolidated Minimum Wage Table ."

Congressional Budget Office. " The Budgetary Effects of the Raise the Wage Act of 2021 ," Page 8.

U.S. Department of Labor. " Questions and Answers About the Minimum Wage ."

Pew Research Center. " The U.S. Differs From Most Other Countries in How it Sets Its Minimum Wage ."

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Home — Essay Samples — Economics — Minimum Wage — Argumentative Essay On Minimum Wage

Argumentative Essay on Minimum Wage

• Categories: Income Inequality Minimum Wage

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Published: Mar 5, 2024

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Why we need to raise the minimum wage

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Nearly 8 million Americans go to work every day yet still live below the poverty line. That is in part because the federal minimum wage is too low.

Currently, an individual with a full-time job at the minimum wage and a family of three to support will fall below the federal poverty line. These workers, despite putting in regular hours, are struggling to provide basic necessities for themselves and their families. By allowing the minimum wage to remain at a nearly unlivable level, we have deemed certain jobs not worthy enough to meet even our country’s minimum standard of living.

How have we been able to keep wages so low without significant social discord? By using tax revenue and a complicated government bureaucracy to subsidize low-wage employers and supplement minimum-wage salaries. Rather than firms paying a worker’s true cost and customers paying an appropriate price for the services provided by those firms, the government provides workers with “income transfers” to help them meet basic needs. These include such programs as the earned income tax credit, food stamps and Medicaid.

These government supports mask a job’s true value and set an artificially low wage. They also represent the height of inefficiency. Raising the minimum wage means that the income required for basic needs is delivered in a one-step approach, via the paycheck directly from firm to worker, rather than requiring additional government expenditures.

Beyond efficiency, there is also the matter of human dignity. Think about it: After a long day on the clock, you come home knowing that despite your hard work, you can’t feed your family, cover their medical insurance or pay your rent without government support. What message does that send about the dignity of your work and the pride of taking personal responsibility for your family? Low wages push workers into shadow labor markets where they get paid under the table, avoid reporting income and evade tax responsibilities. Artificially low wages teach workers that their work is not valuable — a disastrous policy outcome.

In his State of the Union speech, President Obama called for raising the minimum wage to $9 an hour. That would be a start toward restoring dignity and value to low-wage work. But it isn’t enough. We propose raising the minimum wage, in stages, to $12.50 an hour, an amount that would allow an individual supporting a family of three to live modestly, at about 138% of the federal poverty line. That level offers workers a way to escape poverty, a chance to feed their families, buy basic medical insurance and live in secure housing without significant government support.

The most common objection to raising the minimum wage is that it destroys jobs. But a slew of recent studies have pointed out that although raising the minimum wage does increase earnings and reduce poverty, it has a limited, almost negligible, effect on employment. Studies have also illustrated that restoring the dignity of work through higher wages reduces worker turnover and increases productivity.

Some make the overstated claim that increasing the minimum wage would accelerate companies’ off-shoring of jobs. But most low-wage jobs today are geographically fixed, or as economists call them, “non-tradable.” A janitor or home-care worker’s job, for example, can’t be outsourced to China.

What is sometimes understated is the likelihood of low-wage jobs being automated, a real and growing threat. But if a small growth in the minimum wage is enough to move an industry to automation, it is likely that automation was coming in short order anyway. Technological progress is inevitable and further automation unavoidable. If raising the minimum wage leads to productivity gains through investment in automation, so be it. In the meantime, we need to reward American workers for their efforts.

Some argue that raising the minimum wage offers benefits to those who may not need them. This argument is also flawed. The Economic Policy Institute’s latest analysis shows that most low-wage workers live in low-wage households, and 84% of the workers in low-wage jobs are at least 20 years old. But, regardless of age or need, anyone who shows up to work and puts in hard hours deserves a wage that keeps him or her out of poverty.

Finally, critics of raising the minimum wage often suggest raising the earned income tax credit instead. But that would simply perpetuate the cycle of devaluing work. It also takes money out of the pockets of taxpayers rather than from the businesses that benefit from the credit, creating, in effect, a federal subsidy for low-wage employers. A higher minimum wage would help ensure that the earned income tax credit works more effectively and efficiently.

Raising the minimum wage is about reducing inequality, but it is also about restoring the true value of work. Every American’s hard work should be rewarded.

Andy Stern is a senior fellow at Columbia University’s Richman Center and former president of the Service Employees International Union. Carl Camden is president and CEO of Kelly Services and co-chairman of the board of trustees of the Committee for Economic Development.

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The future is equal

Politics of Poverty

6 simple reasons we should raise the minimum wage right now.

The federal minimum wage—just $7.25 an hour—hasn’t been increased in more than a decade.

It’s time to raise the minimum wage. Today, millions of Americans do arduous work in jobs that pay too little and offer too few benefits. They serve food, clean offices, care for the young and elderly, stock shelves, and deliver pizza. They work these jobs year after year while caring for children and parents, trying to save for college, and paying their bills.

But despite their best efforts, these low-wage and essential workers are falling further and further behind. The federal minimum wage of $7.25/hr is locking millions—most notably women of color and single parents—in poverty.

The way we see it, if you work hard, you should earn enough to get by. That’s why efforts to raise the federal minimum wage to $15 to help Americans across the country are so important.

Here are six simple reasons why raising the minimum wage makes sense.

1. it is long overdue.

Since it was last raised in 2009, the minimum wage has failed to keep up with inflation, failed to keep up with average wages, and—most dramatically—failed to keep up with incomes of the top 1 percent and CEOs, contributing to America’s growing inequality crisis.

As a result, low-wage workers are not benefiting from economic growth and productivity. If the minimum wage had kept pace with productivity increases, it would be around $24/hr according to the Center for Economic and Policy Research. Just 30 years ago, the average pay gap between CEOs and workers was 59 to 1; by 2018, it had soared to 361 to 1 . The average CEO at one of the top 350 firms in the US made $21.3 million in 2019 , 320 times as much as the typical worker; a minimum wage worker still makes $15,080: a gap of 1,400 to 1.

2. It would address longstanding racial and gender inequities

Historically marginalized people, who do more than their fair share of low-wage work, would stand to benefit disproportionately from the bump. (For dramatic illustration of the disparate impact of a raise, refer to Oxfam’s map of low-wage workers in the US.)

According to the data from the Economic Policy Institute, while 27 percent of the total US workforce would benefit from the raise:

• 39 percent of Black and Latina women would benefit (vs. 18 percent of white men);
• 38 percent of African American workers would benefit;
• 33 percent of Latino workers would benefit; and
• 32 percent of women workers would benefit (vs 22 percent of men).

3. It would reduce poverty

The bump from $290 a week to $600 a week would lift millions of families out of poverty. More than a quarter of the workforce— 40 million workers —would see a raise in wages.

The pandemic has made this move even more urgent, as millions have slipped into poverty over the past year, and 11 percent of adults are now facing food insecurity.

4. It would fuel economic growth

The roughly $120 billion extra paid to workers would be pumped back into the economy for necessities such as rent, food, and clothes. Economists have long recognized that boosting purchasing power by putting money in people’s pockets for consumer spending has positive ripple effects on the entire economy.

In one recent poll, 67 percent of small business owners support the minimum wage increase to $15 an hour. They say it would spark consumer demand, which would enable them to retain or hire new employees.

And raising the wage doesn’t seem to compel employers to cut jobs. As states and cities across the country have raised wages, research has found no statistically significant effect on employment .

5. It would save taxpayer money and reduce use of government programs

When employers don’t pay people enough to survive, those workers are compelled to seek government assistance, meaning taxpayers are essentially subsidizing the corporations.  

In 2016, the Economic Policy Institute found that , among recipients of public assistance, most work or have a family member who works; and they are concentrated at the bottom of the pay scale. Raising wages for low-wage workers would “unambiguously reduce net spending on public assistance, particularly among workers likely to be affected by a federal minimum-wage increase.”

6. It’s what the vast majority of Americans want

Vast majorities (up to three quarters, including a majority across party lines) support raising the wage. In fact, over half the states have raised their minimum wages to restore basic fairness to the workforce.

All work has dignity and worth. We need to get our economy moving, prioritizing workers and families most impacted by the pandemic, specifically women and people of color. After more than a decade of hard work, low-wage workers deserve a bump to get them and their families out of poverty.

Find out how many people in your state would benefit from raising the minimum wage.

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13.7: Sample Outline- Persuasive Speech Using Monroe's Motivated Sequence Pattern

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• Kris Barton & Barbara G. Tucker
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Speech to Actuate:

Sponsoring a Child in Poverty

Specific Purpose:

to actuate my audience to sponsor a child through an agency such as Compassion International.

Introduction (Attention Step)

I. How much is $38? That answer depends on what you make, what you are spending it for, and what you get back for it. (Grabber)

II. $38 per month breaks down to a little more than $1.25 per day, which is probably what you spend on a snack or soda in the break room. For us, it’s not very much. (Rapport)

III. I found out that I can provide better health care, nutrition, and even education for a child in Africa, South America, or Asia for the $38 per month by sponsoring a child through Compassion International. (Credibility)

IV. If I can do it, maybe you can too: (Bridge)

Through a minimal donation each month, you can make the life of a child in the developing world much better.

In the next few minutes I would like to discuss the problem, the work of organizations that offer child sponsorships, how research shows they really do alleviate poverty, and what you can do to change the life of a child. Body

I. The problem is the continued existence and effects of poverty. (Need Step)

A. Poverty is real and rampant in much of the world.

1. According to a 2018 report of the Secretary General of the United Nations, 9.2% of the world lives on less than $1.90 per day.

a. That is 600 million people on the planet.

2. This number is supported by the World Poverty clock of the World Data Lab, which states that 8% of the world’s population lives in extreme poverty.

a. The good news is that this number is one third of what it was in 1990, mostly due to the rising middle class in Asia.

b. The bad news is that 70% of the poor will live in Africa, with Nigeria labeled the “Poverty Capital of the World,” according to the Brookings Institute.

B. Poverty means children do not get adequate health care.

1. One prevalent but avoidable disease is malaria, which takes the lives of 3000 children every day, according to UNICEF.

2. According to the World Health Organization, diarrheal diseases claimed 2.46 million lives in 2012 and is the second leading cause of death of children under 5.

C. Poverty means children do not get adequate nutrition, as stated in a report from UNICEF.

1. Inadequate nutrition leads to stunted growth.

2. Undernutrition contributes to more than one third of all deaths in children under the age of five.

D. Poverty means children are unlikely to reach adult age, according to the CIA World Fact Book quoted on the Infoplease website.

1. Child mortality rate in Africa is 8.04% (percentage dying before age 5), while in North American is .64%

2. Life expectancy in Sub-Saharan Africa is almost 30 years less than in the U.S.

E. Poverty also means children are unlikely to receive education and be trained for profitable work.

1. Nearly a billion people entered the 21st century unable to read a book or sign their names, states the Global Issues website on Poverty Facts.

2. UNESCO, a part of the United Nations, reports that less than a third of adults in Sub-Saharan Africa have completed primary education.

Transition:

Although in all respects poverty is better in 2019 than it has been in the past, poverty is still pervasive and needs to be addressed. Fortunately, some great organizations have been addressing this for many years.

II. Some humanitarian organizations address poverty directly through child sponsorships. (Satisfaction Step)

A. These organizations vary in background but not in purpose. The following information is gleaned from each organization’s websites.

1. Compassion International is faith-based, evangelical.

a. Around since early 1950s, started in Korea.

b. Budget of $887 Million.

c. Serves 1.92 million babies, children, and young adults.

d. Works through local community centers and established churches.

2. World Vision is faith-based, evangelical.

a. Around since the 1950s.

b. Budget of far over $1 Billion.

c. 60% goes to local community programs but more goes to global networks, so that 86% goes to services.

d. World Vision has more extensive services than child sponsorship, such as water purification and disaster relief.

e. Sponsors three million children across six continents

3. Children International is secular.

a. Around since 1936.

b. Budget of $125 Million.

c. 88% of income goes directly to programs and children.

d. Sponsors children in ten countries on four continents

e. Sponsors X across X continents

4. Save the Children is secular, through…

a. One hundred years of history, began in post WWI Europe.

b. Budget of $880 Million.

c. 87% goes to services.

d. Sponsors 134 million children in 120 countries, including 450,000 in U.S.

5. There are other similar organizations, such as ChildFund and PlanUSA.

B. These organizations work directly with local community, on-site organizations.

1. The children are involved in a program, such as after school.

2. The children live with their parents and siblings.

3. The sponsor’s donation goes for medicine, extra healthy, nutritious food, shoes for school, and other items.

4. Sponsors can also help donate for birthdays and holidays to the whole family to buy food or farm animals.

Of course, any time we are donating money to an organization, we want to be sure our money is being effectively and ethnically used.

III. This concern should be addressed in two ways: Is the money really helping, and are the organizations honest? (Continuation of Satisfaction Step)

A. The organizations’ honesty can be investigated.

1. You can check through Charity Navigator.

2. You can check through the Better Business Bureau-Charity.

3. You can check through Charity Watch.

4. You can check through the organizations’ websites.

B. Secondly, is sponsoring a child effective? Yes.

1. According to Bruce Wydick, Professor of Economics at the University of San Francisco, child sponsorship is the fourth most effective strategy for addressing poverty, behind water purification, mosquito nets, and deworming treatments.

2. Dr. Wydick and colleagues’ work has been published in the prestigious Journal of Political Economy from the University of Chicago.

3. He states, “Two researchers and I recently carried out a study (sponsored by the U.S. Agency for International Development) on the long-term impacts of Compassion International’s child sponsorship program. The study, gathering data from over 10,000 individuals in six countries, found substantial impact on adult life outcomes for children who were sponsored through Compassion’s program during the 1980s and ’90s…In adulthood, formerly sponsored children were far more likely to complete secondary school and had a much higher chance of having a white-collar job. They married and had children later in life, were more likely to be church and community leaders, were less likely to live in a home with a dirt floor and more likely to live in a home with electricity.”

To this point I have spoke of global problems and big solutions. Now I want to bring it down to real life with one example.

IV. I’d like to use my sponsored child, Ukwishaka in Rwanda, as an example of how you can. (Visualization Step)

A. I have sponsored her for five years.

B. She is now ten years old.

C. She lives with two siblings and both parents.

D. She writes me, I write her back, and we share photos at least every two months.

E. The organization gives me reports on her project.

F. I hope one day to go visit her.

G. I believe Ukwishaka now knows her life can be more, can be successful.

We have looked at the problem of childhood poverty and how reliable, stable nongovernmental organizations are addressing it through child sponsorships. Where does that leave you?

V. I challenge you to sponsor a child like Ukwishaka. (Action Step)

A. Although I sponsor her through Compassion International, there are other organizations.

B. First, do research.

C. Second, look at your budget and be sure you can do this.

1. You don’t want to start and have to stop.

2. Look for places you “waste” money during the month and could use it this way.

3. Fewer snacks from the break room, fewer movies at the Cineplex, brown bag instead of eating out.

D. Talk to a representative at the organization you like.

E. Discuss it with your family.

F. Take the plunge. If you do.

1. Write your child regularly.

2. Consider helping the family, or getting friends to help with extra gifts.

I. In this speech, we have taken a look at the state of poverty for children on this planet, at organizations that are addressing it through child sponsorships, at the effectiveness of these programs, and what you can do.

II. My goal today was not to get an emotional response, but a realistically compassionate one.

III. You have probably heard this story before but it bears repeating. A little girl was walking with her mother on the beach, and the sand was covered with starfish. The little girl wanted to rescue them and send them back to the ocean and kept throwing them in. “It won’t matter, Honey,” said her mother. “You can’t get all of them back in the ocean.” “But it will matter to the ones that I do throw back,” the little girl answered.

IV. We can’t sponsor every child, but we can one, maybe even two. As Forest Witcraft said, “What will matter in 100 years is that I made a difference in the life of a child.” Will you make a difference?

AGScientific. (2019). Top ten deadly diseases in the world. Retrieved from http://agscientific.com/blog/2016/04/top-10-deadly-diseases/

Compassion International. (2019). Financial integrity: The impact of our compassion. Retrieved from https://www.compassion.com/about/financial.htm

Children’s International. (2019). Accountability. Retrieved from https://www.children.org/learn-more/accountability

Global Issues. (2013, January 7 ). Poverty facts and stats. Retrieved from https://www.globalissues.org/article/26/poverty-facts-and-stat s

Infoplease. (2019). What life expectancy really means. Retrieved form https://www.infoplease.com/world/health-and-social-statistics/life-expectancy-countries-0

Kharas, H., Hamel, K., & Hofer, M. (2018, Dec. 13). Rethinking global poverty reduction in 2019. Retrieved from https://www.brookings.edu/blog/future-development/2018/12/13/rethinking-global-poverty-reduction-in-2019/

Roser, M. (2019). Child and infant mortality rates. Retrieved from https:// ourworldindata.org/child-mortality

Save the Children. (2019). Financial information. Retrieved from https://www.savethechildren.org/us/a...al-information UNICEF.(2008).

Tracking progress on child and maternal nutrition: A survival and development priority. Retrieved from https://www.unicef.org/media/files/Tracking_Progress_on_Child_and_Maternal_Nutrition_EN_110309.pdf UNICEF 2019.

The reality of Malaria. Retrieved from https://www.unicef . org/health/files/health_africamalaria.pdf United Nations. (2019). Poverty eradication. Retrieved from https://sustainabledevelopment.un.org/topics/povertyeradication

World Vision. (2019). Financial accountability. Retrieved from https:// www.worldvision.org/about-us/financial-accountability-2 Wydick, B., Glewwe, P., & Rutledge, L. (2013).

Does international child sponsorship work? A six-country study of impacts on adult life outcomes. Journal of Political Economy, 121(2), 393–436. https://doi. org/10.1086/670138 Wydick, B. (2012, Feb.).

Cost-effective compassion. Christianity Today, 56(2), 24-29. Wydick, B. (2013). Want to change the world? Sponsor a child. Christianity Today, 57(5), 20–27.

The Minimum Wage Should Be Increased to Help Low-Income Earners Get Out of Poverty

The minimum wage essay introduction.

The concept of the minimum wage has sparked a major debate among economists and politicians in the United States of America. After recovering from the major recession that rocked the United States, the economy has still been on its knees for more than five years. It has made a serious impact on the main investors. However, the most significant influence has been on workers and families that have continuously survived on the minimum wage. This wage has been noted to be the same many decades after the end of the World War and has not gotten a review despite the standards of living going up. However, as many people that rely on the minimum wage continue to suffer the effects of the rising standards of living on a low wage, the corporate class has continued to gain large profits. The essay about minimum wage raising will analyze the pros and cons of wage increase both for politics and the economy of the USA.

The Minimum Wage Essay Body Paragraphs

It is very disturbing that the number of individuals that rely on the minimum wage is fast rising. The value of the minimum wage has lost its value more than tenfold since it was last reviewed. This has caused panic among most economists who describe this as a sign of an ailing economy. There have always been stereotypes among those who earn low wages, especially in an era that most individuals have had to acquire white-collar jobs.

The past studies have increasingly shown that the minimum wage earners are now composed majorly of teenagers. However, this has recently changed to the extent that half of the minimum wage earning population is composed of young adults that are about 25 years old.

Government intervention in such an issue is predictable. The expected response would be to raise the minimum wage. To a layman, this would make sense. However, to an economist and a keen observer, the idea of having the minimum wage raised is complex and raises a lot of questions concerning its viability on whether it does anything to improve the economy. The raising of the minimum wage is expected to up the living standards of the poor and those that rely on the minimum wage for living. However, it has recently been projected that raising the minimum wage by 10 dollars would do nothing on most payrolls and would translate to a very insignificant improvement in the economy.

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Beyond the political and economist platforms, the question of the minimum wage is almost not debatable. Opinion polls have shown that up to 70% of Americans have shown unanimous support for the increment on the minimum wage. It is despite scholars arguing that it negates the principle of hard work among the citizens.

Taxpayers in the United States have contributed dramatic amounts of money in aid of poor families in the country. It has raised numerous questions as to whether this move is necessary with some people arguing that there was a need to wipe the misled notion of trying to find fairness in society. The campaign on fairness has seriously undermined the significance of hard work. Despite some political movements advocating for this, most people have been opposed to this concept claiming that the work is not charity rather something that should be defined by hard work.

The wrong notion instilled among the masses on the question of increasing the minimum wage is said to be a political weapon. It is more likely to be used by the Democrats who have greatly advocated for the rise in the minimum wage. It has often moved the masses who have championed the notion of increasing the minimum wage. However, experts have noted that despite this being a possible cause of a swing vote, the phenomenon will be bad for the economy.

When analyzed from a different perspective, however, one could see the need for the increment of the minimum wage. Other factors held constant, the current minimum wage translates to a pay cut when compared to the wage after World War II. It, in part, justifies the call for the hike in the minimum wage, since economists have argued that this has created an increasing an economic difference between those who earn peanuts and tycoons that run the economy.

Analysts have stated that there is no natural law that defines the minimum wage. The way it is set depends purely on public policy and political decisions. Keeping with this notion, in past decades, the minimum wage earners worked to keep pace with the rising living standards. However, the recent calls for a hike in the minimum wage have been described as a scheme to discourage hard work. It is clear that if the minimum wage is increased for any reason, be it political and economics, the cost of hiring employees will increase. It would mean that the employers will have to lay off some workers while reducing the number of employees they hire per year. It would translate to a situation whereby a significant number of minimum wage earners would miss out on employment (Dickens, 2014). The consequences of this move are complex. But to the working citizen, it would be irrational not to consider a minimum wage hike.

The government’s consideration for tax subsidies for the low income earning population, despite being welcomed by the masses, has introduced an interesting yet complex concept. Studies of Walmart have shown that this has created profits for large organizations and profitable businesses that have explored this advantage.

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American taxpayers have continued to pay a lot of money to welfare organizations that seek to cushion low-income earners amounting to up to 60 billion dollars. This move raises the low-income earners out of the poverty line. However, it creates easy money for many corporate organizations that seek to exploit this money. It is because with the welfare funds the corporate businesses have now found cash flow among the minimum wage earners.

Experts who opposed the hike in the minimum wage have for a long time argued that the rise in the minimum wage will cost jobs for the individuals that tend to need them the most. The hiking of the minimum wage despite negating the value of hard work will make it difficult for large organizations to hire employees as noted earlier in this essay about minimum wage raising.

The Minimum Wage Essay Conclusion

Such arguments have been a source of major debates recently as people continue to fight against a collapsing economy faced with inflation. Perhaps, the economy of the minimum wage has been one of the most thorough yet not exhaustively researched concepts. Scholars have gone to the extent of studying two different countries that share borders. They have keenly observed the results after one of the nations boosts the minimum wage and the other does not. The conclusion has always been that the hike has minimal if any effect on employment. The concept of the hike for the minimum wage is complex.

A phenomenon has created politics of the day, with many politicians getting the ticket to the White House due to their support for the hike for the minimum wage. The masses have continually supported this move since it directly impacts them. However, only a few of them have considered the effect of this hike to the field of employment and to the job market. A minimum wage raise could be good for the welfare of the poor communities. However, the proponents of this concept perhaps need to take a keen look at economics and its basics to understand the effect on the economy and on the job market.

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Mar 5, 2021

Bernie Sanders Senate Floor Speech on Minimum Wage Transcript March 5

Senator Bernie Sanders spoke about increasing the minimum wage to $15 on the Senate floor on March 5, 2021. Read the transcript of the full speech remarks here.

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Speaker 2: ( 01:14 ) The Senator from Vermont, Mr. Sanders for himself and others proposes an amendment numbered 972, to amendment number 891. At the end of title to add the following, subtitle M, increasing the federal minimum wage.

Bernie Sanders: ( 01:29 ) Let’s let the entire amendment be read, I ask unanimous consent that the reading of the amendment be waived.

Speaker 1: ( 01:37 ) Is there objection? Without objection.

Bernie Sanders: ( 01:42 ) Madam President, I rise today to offer an amendment to increase the federal minimum wage from a starvation wage of $7 and 25 cents an hour to $15 an hour over a five-year period. As I think you know, the Congress has not raised the minimum wage since 2007. And the result of that is that half of our people are now living paycheck to paycheck. And many in fact are working for wages that are much too low in order to take care of their families. So to my mind, the American people in poll after poll, in state after state understand that we’ve got to raise that minimum wage to a living wage of 15 bucks an hour. And I intend to do everything that I can to make that happen. And I will be offering that amendment this morning. But before I do that, let me begin my remarks by explaining why this reconciliation bill, the American Rescue Plan, that we are debating today is so enormously important that it must be passed, and it must be passed as quickly as possible.

Bernie Sanders: ( 03:15 ) In my view, this legislation is the most consequential and significant legislation for working families that Congress has debated for many, many decades. Now, why is that? And the answer is that is I think all Americans know, the last year, last year that we have gone through has been in so many ways, the very worst year in our lifetimes. That’s what it has been. The working families of our country today are hurting in a way that they have not hurt since the Great Depression, and they want their government to hear their pain and come to their aid. And that is not too much to ask. Now, a lot of folks in this country, there are estimates that maybe 30 to 40% of Americans have literally given up on democracy. They are moving toward authoritarianism. They are hurting, their kids are hurting, their parents are hurting. And they look to Washington for help in their democratic society, and they don’t see Washington responding.

Bernie Sanders: ( 04:43 ) What they see year after year are policies which make the very very rich richer, which enable large profitable corporations to not pay a nickel in taxes. But for them, they face eviction, they face hunger. They don’t have healthcare. They can’t afford to send their kids to college. And they are asking, “Does anybody, anybody in Washington care about their lives?” So what today is about in a very profound way is whether or not we stand with the working class of this country. That we say, “Yes, we live in a democratic society. We understand what you are going through, and we’re going to move as aggressively as we can to respond to your pain and improve your lives.” So this is not just a healthcare bill, it is. Not just an economic bill, it is. Not just an educational bill, it is. Perhaps more than that, this is a bill which will answer a profound question. Are we living in a democratic society, where the US Congress will respond to the needs of working families, rather than just the wealthy and large corporations and their lobbyists? That’s what today is about.

Bernie Sanders: ( 06:16 ) It is dealing with the pandemic. It’s dealing with the economy. It’s dealing with education, and so much more. But most importantly, it is dealing with the issue of whether or not we are hearing the pain that is out there, and we are responding to it. During the last year, as everybody knows, over 500,000 Americans have died of COVID, and millions more have been made ill. Unbelievable. Unbelievable what we have gone through in terms of this terrible pandemic. COVID has not only caused massive death and illness, it has resulted in a way we have never experienced social isolation. That means all over this country, you got old people, elderly people in their homes. They can’t interact with their grandchildren, with their own kids, with their friends. You got young people who want to go to school, want to socialize, want to date, want to do things that young people do, and they can’t do it, and have been unable to do that for the last year. And that has resulted in a very sharp increase in mental illness in this country. Something, by the way that this legislation also deals with.

Bernie Sanders: ( 07:36 ) Many Americans, young and old and middle-aged are now dealing with depression, anxiety disorder, addiction, seeing the growth of addictions, and even suicidal ideation. So this has been just an awful year for people in our country and in fact, throughout the world. But this last year has not only been a public health crisis as bad…

Bernie Sanders: ( 08:03 ) … year has not only been a public health crisis, as bad as that has been, the pandemic has led, as we all know, to a terrible economic downturn which has resulted in millions of Americans losing their jobs and their incomes, and the shutting down of something like one out of four small businesses in this country. Just an unbelievable number. Go to any town in America, and you’ll see their main street shuttered now. Thriving businesses no longer exist.

Bernie Sanders: ( 08:37 ) Real unemployment in this country today is now over 10%. Further, countless Americans face the threat of eviction. We have a moratorium on evictions, which is the right thing, but there is going to be a day when that ends. And people are saying, “I’m $5,000, $8,000 in debt. What happens to me when the moratorium ends? How am I going to pay my rent? Am I going to be one of the 500,000 people already sleeping out on the streets?”

Bernie Sanders: ( 09:12 ) Millions more … And we have seen this in Vermont, and I know you’ve probably seen it in Minnesota. It’s all over this country. People lining up in their cars for food. And it is something that none of us ever dreamed. Right in my own community, Burlington, Vermont, hundreds of people lining up in their cars for food, many of them never in a million years would have dreamed that they would be in that position. And today, the level of hunger in America is at the highest level it has been in decades.

Bernie Sanders: ( 09:42 ) And then, on top of all of that, we are in the midst of a pandemic. People are scared to death about coming down with COVID, yet because of our dysfunctional healthcare system, we have over 90 million people who are uninsured or under-insured in the midst of a pandemic.

Bernie Sanders: ( 10:03 ) But it’s not only the public health crisis we worry about. It’s not only the collapse of our economy that we got to worry about. It is what’s happening to our young people, because the pandemic has created massive disruption in our educational system, from childcare through graduate school. The majority of our young people have seen their education disrupted, and think about all of the implications of what that means. And it is likely that hundreds of colleges in America, were struggling before the pandemic, will cease to exist.

Bernie Sanders: ( 10:46 ) So you got a public health crisis, half a million people dead, an economic crisis, real unemployment of 10%, small businesses going out of business, and an educational crisis. Meanwhile, in the midst of all of that, it is important to note that not everybody in this country is hurting. What we are seeing in the midst of massive income and wealth inequality is a moment when, in fact, that gap between the very, very rich and everybody else is growing wider. Incredibly, during this pandemic, over 650 billionaires in America have increased their wealth by more than a trillion dollars. The 50, five-zero, richest people in America now own more wealth than the bottom half of American society, some 160 million people.

Bernie Sanders: ( 11:43 ) So the bottom line here is very simple. In this moment of unprecedented crises, the United States Senate must respond to the pain of working families all across this country, and we must respond in an unprecedented way, which is what this legislation is about.

Bernie Sanders: ( 12:08 ) Now, Madam President, I want to say a few words about some of what is in this bill. This is a 600-page bill, and I will not read it all again. I think our clerks have had enough fun reading it last night, but I do want to summarize some of what is in it.

Bernie Sanders: ( 12:34 ) Most importantly, what the American people want is they want to get back to a normal life. They want their kids to go to school. They want to go to work. They want their businesses open. And what the American Rescue Plan does is enable us to aggressively crush this pandemic and enable the American people to return to their jobs and their schools. It will establish a national emergency program to produce the quantity of vaccines that we need and get them into the arms of our people as quickly as possible. Clearly, we are making progress in that area. More and more people are getting vaccinated, but we still have a lot of work to do, and this legislation will enable us to do that.

Bernie Sanders: ( 13:23 ) Madam President, at a time when so many of our people are hurting, this legislation will allow us to provide $1,400 in direct payment to every working class person in this country and to their kids, and this is on top of the $600 that we provided last a month. So, if you’re out there and you are a family of four earning less than $150,000, or an individual earning less than $75,000, you’re going to get that check for $1, 400. And for that family of four, that is $5,600.

Bernie Sanders: ( 14:05 ) Though I know that to somebody with a whole lot of money, you know, 5,600 bucks, ain’t that much, but for a family that is struggling right now, that can’t pay their rent, can’t feed their kids, that $5,600 for a family of four could be the difference between desperation and dignity. Further, at a time when so many of our people are unemployed, this budget reconciliation act will provide $400 a week in supplemental unemployment benefits to over 10 million Americans until the end of August. If you’re unemployed right now, you’re worried, your unemployment check is your only source of income, you’re worried that it’s going to cease, well, it’s not. This legislation will continue that check coming until the end of August. This legislation understands that we have a childcare crisis in America, and we provide the resources to provide childcare out to 875,000 children.

Bernie Sanders: ( 15:13 ) And very importantly, Madam President, we don’t talk about this enough, one of the absolute disgraces of our economy right now is the level of childhood poverty in America, which is one of the highest for any major country on earth. This legislation will go a long way toward cutting childhood poverty. Some studies suggest we’re going to cut it in half by expanding the child tax credit from $2,000 to $3,000, and $3,600 for kids under the age of six. So, in other words, we are about to cut childhood poverty in half in this country.

Bernie Sanders: ( 15:55 ) This legislation obviously deals with the horror of so many of our people facing hunger. We put in very substantial-

Bernie Sanders: ( 16:03 ) Of our people facing hunger. We put in very substantial amounts of money for nutrition assistance for working families, for kids, for the disabled and the elderly. This legislation will provide rent relief, utility assistance, and mortgage assistance to millions of tenants and homeowners who are in danger of eviction and foreclosure. This legislation will protect the pensions of many millions of workers who are in danger of seeing their retirement benefits cut by as much as 65%.

Bernie Sanders: ( 16:41 ) Madam President, not only is this $1.9 trillion emergency COVID relief package the right thing to do from a moral perspective, it is exactly what the overwhelming majority of the American people want us to do. The American people didn’t want us to give tax breaks to billionaires. The American people did not want, as Republicans fought to do, throw 30 million people off the Affordable Care Act, the American people didn’t want that, but that is what the Republicans tried to do under reconciliation. We have a different idea. Yeah, we’re going to use reconciliation, which only requires 51 votes. We are going to use it, not for tax breaks for the rich, not to throw people off of healthcare, but to provide the help that working class people need all across this country.

Bernie Sanders: ( 17:39 ) Madam President, I am introducing, as I mentioned earlier, legislation and amendment today to raise the minimum wage to 15 bucks an hour. Because of an unfortunate and, in my view, misguided decision by the parliamentarian, this reconciliation bill does not include an increase in the minimum wage to $15 an hour. In my view, it should have, and I think the parliamentarian was dead wrong, but more importantly, it is an absurd process that we allow an unelected staff of somebody who works for the Senate, not elected by anybody, to make a decision as to whether 30 million Americans get a pay raise or not. I don’t care how the parliamentarian rules, no parliamentarian should have that power. If people here want to vote against raising the minimum wage, they have that right. Want to vote for it, and I hope you do, you have that right. But we should not shuffle off that responsibility to what unelected staffer. That’s wrong.

Bernie Sanders: ( 18:49 ) The amendment, which I am offering today, to raise that minimum wage to $15 an hour is co-sponsored by Majority Leader Schumer, and I thank him for his strong support, Senator Patty Murray, who was the Chair of the Health Education Labor Committee, Senator Ron Wyden, who was the Chair of the Finance Committee, and many others in this chamber. In fact, this amendment is similar in many ways to the legislation that I have authored, which is co-sponsored by 38 members of the Senate. And let us not forget, this legislation was passed in the House. And I want to thank my friends and colleagues in the House Progressive Caucus for their extraordinary leadership on this issue.

Bernie Sanders: ( 19:38 ) This amendment is supported by some 300 national organizations, including the AFL-CIO and virtually all of the major unions in our country. And I want to thank, in particular, the SEIU, one of the great unions in America, who have led this effort for years in terms of a fight for 15 where people working in McDonald’s and Burger King have gone out on strike and said, “No, we can’t make it on 10 bucks an hour, 11 bucks an hour. I want to thank the SEIU.

Bernie Sanders: ( 20:08 ) And because this legislation will help workers all across the board, but it will significantly help women who are, unfortunately, forced into low income work more than the general population, more than men, and it will disproportionately help African- Americans and Latinos who disproportionately are forced into low income work, this legislation is supported not only by 300 organizations, but by groups like the Leadership Conference on Civil and Human Rights. They understand that if we’re going to improve the standard of living of the African-American community, we’ve got to raise that minimum wage. It is supported by the National Organization for Women because, again, this raising the minimum wage is a women’s issue in a very significant way. Not totally. Believe me, there a lot of men out there who working for 9, 10, 11 bucks an hour, but disproportionately it impacts women. It is supported by Unidos and other Latino organizations, supported by the American Association of University Women, supported by Indivisible, Justice for Migrant Women, the National Domestic Workers Alliance, and the National Women’s Law Center. And here is the simple truth. And that is that in the richest country in the history of the world, we can no longer tolerate millions of our workers being unable to feed their families because they are working for starvation wages. And that is not what I say, although I do say it, it’s what the President of the United States does, who very, very strongly supports raising the minimum wage to $15 an hour. And I thank him for his support.

Bernie Sanders: ( 22:02 ) You know, when we look at the economy, people look at the stock market, they look at a whole lot of indices out there, but at the end of the day, we have to ask ourselves what is going on in the lives of ordinary people. And it is not acceptable to me that half of our people live paycheck to paycheck and millions of people trying to get by on 9, 10, 11 bucks an hour. And you know what? You can’t do that. You can’t do that in Vermont and you can’t do it in California. You can’t do it in Minnesota. You can’t do that. And our job is to make sure that we have an economy that works for all and not just a few. And that in order to do that, we are going to have to raise that minimum wage to 15 bucks an hour.

Bernie Sanders: ( 22:46 ) Frankly, it is disgraceful that Congress has not passed an increase in the minimum wage since 2007. Think of all the things that have transpired since then, but Congress has not raised the minimum wage since 2007. And the reality is that the minimum wage has lost over 30% of its purchasing power since 1968. Minimum wage is worth a lot less now than it used to be. When we increase the minimum wage, Madam President, we will be giving over 32 million Americans a much needed pay raise. And let’s be clear. Raising the minimum wage to $15 an hour is an enormously popular idea. More than 60% of the American people in poll after poll support raising the minimum wage since 1998. This is really amazing. You know, I have some friends here who are nervous. “Oh my goodness, how radical can it be? Should we raise the minimum wage? Oh my God. I’m scared of the American Restaurant Association.” Well, since 19-

Bernie Sanders: ( 24:03 ) … American Restaurant Association. Well, since 1998, every time a state has had an initiative on the ballot to raise the minimum wage, it has won in conservative states and progressive states. Put it on the ballot, it wins. Just as one example, just this last November, election time, Joe Biden lost Florida. Donald Trump won Florida by three points. But in that same election, the people of Florida, and I say that to the two senators from Florida, 61% of the people in Florida voted to raise the minimum wage to $15 an hour. Florida voted for Donald Trump, and voted to raise the minimum wage to $15 an hour. Eight states over the years, eight states and over 40 cities, have adopted laws to raise the minimum wage to $15 an hour. It’s not a radical idea. And as you know, over just a few days ago, the House of Representatives did the right thing and voted to raise the minimum wage to $15.

Bernie Sanders: ( 25:11 ) This is not a radical idea. People want it. States have done it. The House of Representatives has done it. And now it is our turn to do what the American people want. Now, in the last few days, I have heard some concerns from my colleagues about one part of our amendment, and that is the provision to raise the tip wage, which now stands… I want everybody to hear that. Tip wage for waiters and waitresses and all those people who get tips now stands at $2.13 an hour. No, you did not mishear me. $2.13 an hour. And that is the federal minimum wage for waiters and waitresses, for barbers, for hairstylists, for parking attendants, and others. And that tip minimum wage has not been raised since 1991, 30 years ago. You think maybe it’s time to raise the tip wage from $2.13 cents an hour, passed 30 years ago? I think so.

Bernie Sanders: ( 26:19 ) The proposal in this legislation would raise that tip wage from 2.13 an hour to 14.95 over a seven year period. Now, time and again, our legislation gets misrepresent. People say, “Oh, you’re raising the minimum wage to $15 an hour tomorrow.” No, we are not. Tip wage is going to take seven years. For better or worse, that’s what it is. Now, the National Restaurant Association, very powerful lobbying organization, has suggested to members of Congress that this legislation is opposed by restaurant workers and would be harmful to their interests. This is not true. One Fair Wage, an organization representing service employees, has just delivered to the White House a petition with 140,000 signatures from service workers who are demanding that they receive the same minimum wage as every other worker in their state. Polling among service employees and non-service employees also supports the reality that Americans want our waiters and waitresses and other service employees to get a fair minimum wage. Now, I have heard from some people that those people are working in the service industry are doing really well, and they don’t want an increase in the federal minimum wage. The tips that they are receiving are covering all of their needs. Leave well enough alone, they say. Well, today, 70% of tip workers are women who suffer from three times the poverty rate of the rest of the US workforce. They are not doing so well. They use food stamps at double the rate of the general workforce and suffer, by the way, from the highest rates of sexual harassment of any industry, because they must tolerate inappropriate customer behavior to get the incomes that they need. Further, and this is important and I want all of my colleagues to hear this, the idea of moving tip wages to the same level as the overall minimum wage is not a radical idea.

Bernie Sanders: ( 28:31 ) It has been done in state after state. It already exists in seven states in our country, including California, Oregon, Washington, Nevada, Montana, Alaska, and Minnesota. And I should point out that all of those states experienced a growth in the number of small businesses and restaurants after they abolished the tip minimum wage. And guess what? Waiters and waitresses in these states received more tips, not less. And let’s be clear, this pandemic has made a bad situation worse for waiters and waitresses. So right now, Madam President, it is absolutely imperative that we raise that minimum wage to a living wage for all of our workers, and that we raise the tip wage as well, which is already law in seven states of the country right now. And I see the Senator from California, Mr. Padilla, and we’re delighted that he is joining us. And his state has been one of the leaders in this country in raising the minimum wage, and I would yield the floor to him for his remarks.

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Should Ohio raise its minimum wage to $15?

The fight for $15 – a proposal to increase Ohio’s minimum wage through a constitutional amendment is moving forward. Yet, a new restaurant-trade association survey shows that not all restaurant workers are on board with a plan to boost pay and remove tips.

We talk with those for and against, and a lawmaker sponsoring a related bill.

• John Barker , president and CEO of the Ohio Restaurant & Hospitality Alliance
• Matt Schmidt , brand ambassador for Schmidt's Restaurant and Sausage Haus
• Sen. Bill Blessing , bill sponsor in the Ohio Senate
• Mariah Ross,  ballot initiative director of Raise the Wage Ohio
• Saru Jayaraman, president of One Fair Wage

If you have a disability and would like a transcript or other accommodation you can  request an alternative format .

Senate Bill 1186: Pennsylvania's Bold Move to $20 Minimum Wage

PHILADELPHIA, PA — On Friday, Senate Democratic Whip Christine M. Tartaglione unveiled a groundbreaking proposal to boost Pennsylvania’s minimum wage to $20 per hour. The proposed legislation, Senate Bill 1186 , aims to amend the existing Minimum Wage Act of 1968, offering sweeping changes designed to support the state’s lowest earners.

The state legislature has not revised Pennsylvania’s minimum wage since July 6th, 2009. Former Governor Ed Rendell signed Senate Bill 1090, Senator Tartaglione’s legislation, increasing PA’s minimum wage from $5.15 to $7.15. Currently, Pennsylvania’s minimum wage stands at $7.25, aligning with the national minimum wage.

Senator Tartaglione emphasized the urgent need for this reform. “When Senate Bill 1090 was signed into law, it was a promise to continue the fight for our Commonwealth’s lowest earners and ensure their needs are never forgotten or cast aside,” she said. “After 6,506 days of systemic inaction by our legislature, it became clear we needed big and bold legislative action. That’s why I am fighting to raise our minimum wage to a ‘living wage.’”

Understanding Senate Bill 1186

If enacted, Senate Bill 1186 would raise Pennsylvania’s minimum wage from $7.25 to $20 per hour starting July 1st, 2024. The bill also includes provisions for cost-of-living adjustments every five years, linked to the Consumer Price Index for Urban Consumers (CPI-U).

This proposal comes as living costs, especially housing, have surged in Pennsylvania, while wages have stagnated for over a decade. Senator Tartaglione points to data from the Massachusetts Institute of Technology (MIT) indicating that the current minimum wage is far below what is considered livable in the state.

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Key Features of the Bill

The bill also seeks to modernize the state’s minimum wage law. Points of interest include:

• Local Control: Allowing municipalities to set higher local minimum wages than the state level.
• Tipped Wage Adjustments: Setting the tipped wage at 70% of the new minimum wage, ensuring more stability for service workers.
• Enhanced Enforcement: Introducing stronger measures against wage theft, enabling the Department of Labor & Industry to recover unpaid wages and penalties even without a formal complaint.
• Increased Penalties: Raising monetary penalties for violations, some of which have not been updated since 1968.
• Employee Rights: Ensuring gratuities remain the sole property of employees.

Potential Implications

While the proposed living wage could provide much-needed relief for low-wage workers, it has sparked a mixed reaction.

Supporters argue that raising the minimum wage is essential for workers’ dignity and economic security. They claim it will help reduce poverty and stimulate consumer spending, which can benefit the economy overall.

However, opponents caution about potential negative implications. Critics warn that such a significant increase could lead to job losses as businesses, particularly small ones, might struggle to afford higher wages. There is also concern about accelerated automation and reduced working hours, as employers look for ways to cut costs. Additionally, they fear that increased labor costs could lead to inflation and higher prices for goods and services, disproportionately affecting low-income consumers.

Economists predict that businesses might shift toward employing more skilled workers to justify the higher wages, potentially sidelining unskilled labor. This shift could result in fewer job opportunities for those most in need of employment.

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Broader Political Views

This proposal comes at a time when debates over wage reforms are intensifying nationwide. Some Republicans argue that market forces, rather than government mandates, should determine wages. They suggest that such a dramatic increase might disrupt the economic balance and hurt the very workers it’s intended to help.

Conversely, many Democrats believe that government intervention is necessary to correct income inequality and ensure a fair standard of living for all citizens. They highlight successful examples from other states that have increased their minimum wages without catastrophic economic consequences.

The Minimum Wage Showdown

As Senate Bill 1186 moves through the legislative process, it will undoubtedly be a focal point of intense debate. The future of Pennsylvania’s minimum wage hangs in the balance, with significant implications for workers, businesses, and the broader economy. Lawmakers will have to weigh the benefits of a living wage against the potential economic challenges it may pose, making this a pivotal moment for the state’s economic policy.

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