Raise the Minimum Wage in the United States? Yes

Raise the minimum wage in the United States again. The majority of states already have set minimum wages higher than the federal minimum wage, as noted on a United States Department of Labor webpage.¹ And some local areas have set higher rates than either their states or the federal law.  

The federal minimum wage has been $7.25 per hour since 2009 for most jobs. The history of the minimum wage is displayed on another United States Department of Labor webpage.² Of course some persons are exempt from the minimum wage law. But the majority of workers are covered by it.

The United States flag sometimes is used to symbolize the United States government and its legal system. A higher minimum wage might make many citizens prouder of it. This photograph was taken October 23, 2016 of a flag near the courthouses in Lexington, Kentucky.

Subsidies of Low Paid Workers

Many (most?) workers who work for minimum wage or even a few dollars more than minimum age get help from relatives, friends, charities, and/or the government. Indeed, many workers who work fulltime at the minimum wage remain eligible for various federal government benefits such as food stamps (SNAP), subsidized housing, Medicaid, etc.

Such workers may get more income from various government agencies than they do from their fulltime jobs. This is often even truer for many part-time workers. Raising the minimum wage could reduce government expenditures on aid programs, while giving these workers more control over their lives by being less dependent on government assistance.

Other low wage workers are teenagers whose parents pay their basic living costs. Current laws allow employees under age 20 to be paid a minimum wage of $4.25 per hour for their first 90 days of work, $3 per hour lower than the normal minimum wage, as noted on a United States Department of Labor YouthRules webpage.³ I support keeping this $3 per hour gap for those first 90 days of work for those under age 20.

Volunteer Work and Unpaid Internships

There is a place for low-paid workers. Indeed, doing volunteer work for no pay at all for nonprofit organizations is a good way for young people to learn skills and for retirees to remain active. Unpaid internships at corporations are good for many people, too, and when such interns must be considered employees and be paid a minimum wage is discussed in a United States Department of Labor Factsheet.⁴ Indeed, devoting some time regularly to doing unpaid volunteer work, can be a blessing for most people.
    

The United States Minimum Wage and Jobs Outside the Country

I feel that employees deserve to be paid a fair living wage worldwide. Workers in several other countries may work harder, longer hours, under more unsafe conditions, and for much lower pay than workers in the United States. Such problems even contribute to some of the violence around the world. These nations need reforms, too—and international companies can help by raising wages they pay workers in those nations.

But, this article focuses on conditions in the United States. For those who feel jobs might be exported, I want to note that many jobs can’t be easily exported overseas—and a lot of those that can be already have been. Furthermore, gradually, progress is being made toward improved labor conditions worldwide via trade agreements, etc.

Does Raising the Minimum Wage Cost Jobs?

The argument can be made that raising the minimum wage costs jobs as employers lay people off or cut back on their hiring. Also, some minimum wage jobs require minimum skills and in some cases relatively little work. However, many such jobs require specific skills. And, often, even entry level, low wage jobs attract well-qualified persons, willing and able to work hard. Even if the minimum wage is increased, employers will still hire persons for jobs that need done. Often, in cases where jobs are eliminated due to technology, etc., new jobs seem to develop that offset the losses. 

Specific Recommendation

It has been over nine years since the U.S. minimum wage increased. I recommend a $1.00 per hour raise to $8.25 per hour effective either January 1, 2019 or 60 days after passage of the law increasing the minimum wage, whichever is later. I also advocate additional $1.00 per hour raises at one year intervals to raise the rate to $10.25 two years after the increase to $8.25.

These amounts and dates are open to negotiation by persons more skilled and knowledgeable than I. But a pay raise for low paid workers might stimulate the economy by increasing purchasing more than many other proposed economic stimulus measures. Do you agree that raising the United States minimum wage will be beneficial?      

Endnotes:

¹ “Minimum Wage Laws in the States”; United States Department of Labor; updated July 1, 2018. Webpage accessed October 9, 2018. https://www.dol.gov/whd/minwage/america.htm

² “History of Federal Minimum Wage Rates Under the Fair Labor Standards Act, 1938 – 2009"; United States Department of Labor. Webpage accessed October 9, 2018. https://www.dol.gov/whd/minwage/chart.htm

³ “Must young workers be paid the minimum wage?”; Frequently Asked Questions; YouthRules: Preparing the 21^st Century Workforce; United States Department of Labor. Webpage accessed October 9, 2018. https://www.youthrules.gov/know-the-limits/faq/index.htm

⁴ “Factsheet #71: Internship Programs Under the Fair Labor Standards Act”; United States Department of Labor; updated January 2018. Webpage accessed October 9, 2018. https://www.dol.gov/whd/regs/compliance/whdfs71.htm

Disclosure: My current part-time second job that keeps the bills paid while I do my freelance writing is as a store clerk at a retailer. While my hourly wage at the retail store is more than the minimum wage and God enables me to keep my budget balanced, I feel both sympathy for and
empathy with those earning at or near minimum wage. I anticipate being one of the beneficiaries if the minimum wage is increased by the amounts advocated in this article.

NOTE: This article, which was last revised on October 13, 2018 is adapted from one the author published in 2012 on another website (Newsvine) that is no longer in existence.