The Case for a Better Minimum Wage
By Ashley Vang
Beep beep beep the alarm clock rings as the sun begins to rise. Thoughts begin to flood of another dreaded morning, another tiring day, another restless night that will be spent working a minimum wage job. In the United States, the minimum wage is the lowest amount employers can legally pay employees in exchange for their labor. These hourly rates can vary between each state. With some exceptions, the federal minimum wage sets the lowest standard of what employers in America can pay their workers. The federal law placed urges states to at least meet a certain rate of pay.
As of 2019, many people invest in countless hours of work to get paid an hourly wage ranging between “$5.15” in states such as Georgia, “$7.25” in some states (set by the federal law), and all the way up to “$12” in states such as California (STATE MINIMUM WAGES | 2019 MINIMUM WAGE BY STATE). Higher wages are due to state laws’ ability to supersede federal laws. These larger rates are usually increased in a gradual manner whereas $7.25 per hour has been the federal minimum base pay since 2009. Within these ten years, the economy continuously fluctuated through inflation and circulation of money. The economy has drastically changed and improved from the repercussions of the 2008 stock market crash, so the minimum wage should develop and increase with it as well. A stable economy with rising prices should be offset by raising the federal minimum wage. Thus, the United States should augment the current minimum wage, because it would steadily reduce poverty, increase worker productivity, and stimulate the growth of the economy even further. However, it should not reach $15 an hour except for in states with higher costs of living.
As the economy progresses it leads to higher consumer demand resulting in a significant rise in prices which the minimum wage has yet to develop and raise alongside it. This is showcased through the use of, “The Consumer Price Index (CPI) [which] is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services” (12-month percentage change, Consumer Price Index, selected categories). Through the 2019 data collected it has shown that in the last 12 months alone, since February 2018, essentials such as food, shelter, and healthcare have increased by two to three percent. Costs are consistently growing and paying for necessary essentials to survive are getting harder especially with a minimum wage salary. Despite the long hours or vigorous effort that is devoted to these jobs most workers have trouble paying for necessities. These necessities are things that should be easily accessible to everyone but unfortunately is not. The federal minimum wage has not budged for over a decade and prices are increasing a couple of percentages per year making it more difficult to just even live. Raising the minimum wage by a couple of dollars can drastically improve and help workers pay for the basics and essentials in life. Moreover, keeping wages at the pace of inflation allows for better spending power. “Research conducted by the Congressional Budget Office (CBO) suggests that raising the federal minimum wage could raise more than 900,000 households out of poverty in the United States” (Ayres). A couple of dollars per hour may not seem like a lot but it definitely adds up. Increasing the minimum base pay really makes all the difference whether the worker is a full time or a part-time employee. Minimum wage workers are greatly affected by stagnant wages that make it harder to maintain a normal lifestyle and easier for the income inequality gap to rise. Surely, as all the percentages of inflation add up each year, having a higher minimum wage will be effective in balancing out rising costs. Costs are increasing, yet minimum pay has not.
The tedious and long hours put in for a minimum wage job does not always seem worth it for the little amount employees get paid. Therefore, by enacting a higher minimum wage employee productivity and wellbeing will immensely improve. Worker productivity is the rate of goods and services produced for each hour worked. In 2016, “U.S. worker productivity dropped for the third straight quarter” (Chandler). This ultimately signifies that workers are enduring longer hours only to generate less output for companies. The amount of value employees feel as a worker and person, in general, correlates to the wage they are paid.Therefore, several companies have placed their own larger minimum wage for employees, meaning that anyone who works for the company, who does a minimum wage job will be paid that base amount. Places such as Chick-fil-A in Sacramento had “previous hourly rates of $12.50 to $13” which now have been raised to, “between $17 and $18 an hour” by franchise owner Eric Mason (Wida). Chick-fil-A is a fast food restaurant widely known for their fast-paced and exceptional customer service. The significantly large hourly wage their workers are paid motivates employees to work harder as well as set a higher standard in the workplace. This higher standard, as a result of increasing pay, can lead to both employee and customer satisfaction. Employees may be happier and work more diligently since they can work fewer hours than before to maintain their lifestyle. Due to this, they may be less stressed, and their mental health may improve. Accordingly, their attentive attitude will be showcased at work leaving customers feeling content. Although some companies take initiative to give employees higher wages, other businesses do not which is why the federal government should raise the minimum wage to initiate better pay all over the United States.
Essentially, workers all over America are performing similar tasks and jobs yet, some are paid better than others based on where they are located. Due to this, many people argue that the federal minimum wage should be raised to $15 an hour making it an equal pay all over the United States. The federal minimum wage should be increased from $7.25 an hour however, $15 an hour is too much. Doubling the minimum wage everywhere could create inflation and widen income inequality. Pricing of essentials like housing, food, and transportation can differ in all the states and even in separate cities within the same state. For example, as of 2019, “the Median home cost in Los Angeles, California is $670,000 whereas in Atlanta, Georgia it is $236,700” (2019 Cost of Living Calculator: Los Angeles, California vs Atlanta, Georgia). Overall, including and adding all expenses “Atlanta, Georgia is 40.9% cheaper than Los Angeles, California” (2019 Cost of Living Calculator: Los Angeles, California vs Atlanta, Georgia). If the minimum wage is increased to $15 all over America some people would be receiving more for their dollar than others. It makes sense to only allow such a significant raise to states that already have a higher cost of living compared to others. Normally, everything is more expensive in states and cities that are heavily populated which is why the minimum wage tends to be higher in these places. The federal government should raise the minimum wage for all states but not to $15, only states that are more expensive should reach this hourly rate. A higher state wage is usually put into action by state laws based on need. Therefore, the federal minimum wage bill should be raised and consistent throughout America but not allow for states to individually increase the rate more than necessary.
As of now, the minimum wage pay in the United States is neither substantial nor sufficient. Minimum wage is a delicate topic that cannot be decided overnight. Many people want to raise it for the sake of being able to have more money, but there is more to it than just that. Raising the minimum hourly rate too quickly or too immensely can have consequences. Bounteous job opportunities all over the United States are minimum wage jobs and these minimum wage workers are just people too. Minimum wage employees deal and do things that other individuals would not want to do however; they enjoy the satisfaction and benefits that come from the employees doing their job. Beep beep beep, it is time for a better appreciation and understanding of minimum wage employees which can be accomplished by raising the United States’ minimum wage.
2019 Cost of Living Calculator: Compare Los Angeles, California to Atlanta, Georgia,
www.bestplaces.net/cost-of-living/los-angeles-ca/atlanta-ga/50000.
Ayres, Crystal. “18 Should Minimum Wage Be Raised Pros and Cons.” Vittana.org, 2019, vittana.org/18-should-minimum-wage-be-raised-pros-and-cons.
Chandler, Adam. “Why Are American Workers Getting Less Productive?” The Atlantic, Atlantic Media Company, 12 Aug. 2016,www.theatlantic.com/business/archive/2016/08/us-workers-productivity/495722/.
“Charts Related to the Latest ‘Consumer Price Index’ News Release | More Chart Packages.” U.S. Bureau of Labor Statistics, U.S. Bureau of Labor Statistics, Feb. 2019,www.bls.gov/charts/consumer-price-index/consumer-price-index-by-category.htm.
“STATE MINIMUM WAGES | 2019 MINIMUM WAGE BY STATE.”State Minimum Wages | 2019 Minimum Wage by State, 7 Jan. 2019, www.ncsl.org/research/labor-and-employment/state-minimum-wage-chart.aspx.
TodayShow. “Employees at This Chick-Fil-A Will Soon Make More than Some Teachers.” TODAY.com, 29 May 2018,www.today.com/food/chick-fil-california-raises-wages-18-hour-t129917.