economy
Democratic Lawmakers Introduce Bill to Raise Federal Minimum Wage to $25 an Hour
Amid the ongoing affordability crisis, Representatives in Congress have introduced a bill to raise the federal minimum wage for the first time since 2009.
TL;DR
- Democratic representatives introduced the Living Wage for All act to raise the federal minimum wage to $25 per hour.
- The bill proposes gradual increases, targeting $25/hour by 2031 for large employers and by 2038 for smaller ones, then linking it to two-thirds of the national median wage.
- The current federal minimum wage is $7.25 per hour, unchanged since 2009.
- The act also aims to eliminate subminimum wages, such as the tipped wage.
- Advocacy groups like One Fair Wage, NAACP, and American Federation of Teachers support the bill, citing MIT's living wage calculator.
- Opponents historically argue that minimum wage increases can lead to fewer jobs and higher prices.
- Studies on the economic impacts of minimum wage hikes have yielded mixed results, with some showing no negative consequences and others suggesting potential long-term job elimination.
- Approximately 82,000 workers earn the federal minimum wage, and another 760,000 earn less.
- Public support for raising the minimum wage is generally high, though consensus on the exact amount remains a challenge in Congress.
- Previous attempts to raise the federal minimum wage, such as iterations of the Raise the Wage Act and a provision in the American Rescue Plan, have failed to pass.