Overview
****PLEASE DO NOT USE GENERATIVE AI SOFTWARE. IT IS CHECKED THOROUGHLY****
ASSIGNMENT: Please respond to the classmate’s discussion post below:
Material: https://www.usatoday.com/story/money/2022/11/12/state-lowest-and-highest-minimum-wage/10627028002/
The minimum wage: does it hurt workers? | The Economist - YouTube
Costco raises its minimum wage to $16 an hour - YouTube
Here are both sides of the $15 minimum wage debate - YouTube
Zane Brooks
The minimum wage was established in 1933, along with a plethora of other acts that looked to save the American economy from the tragedy that was the great depression. The reasoning for these liberal acts was to make work both accessible and affordable for the everyday American man. When established, the minimum wage was about 5 dollars in today's money, but it often peaked much higher than that amount. In 1968, the value of the minimum wage was about 15 dollars in today's money, so if it was at one point that valuable, why has it not stayed with the market?
The issue of wages lagging behind the rest of the economy is a phenomenon in economics referred to as sticky wages. When inflation occurs, wages are the last factor to be accounted for, leaving a gap between the income the worker earns and the prices of his living expenses. It is important to remember that the minimum wage does not mean the guaranteed income of the worker, and in most cases, the minimum wage can be disregarded in favor of market competition. What is important to remember, however, is that every person in the United States, barring disability and aging, is expected to work to some capacity. This is what makes the minimum wage a political issue.
If every person needs to work to survive, then shouldn't we as a country ensure that there is work available for them to live off of? As it stands right now, the minimum wage of $7.25 is not enough to live on, and ESPECIALLY not enough to support a family on. We as a country are not guaranteeing the American dream that we fought for, and it is entirely within our capability to reach the goal of a living income.
Companies like Costco and Amazon, which have hiked their minimum wage above $15, are examples of the market outperforming policy. This should be the status quo; however, no laborer should be expected to work for less than what is necessary for them to live. The flip side, that being of freedom of choice, is a matter of debate. Smaller companies that would not be able to keep up with the increased wages should be able to have benefits that make up for the cost, to make sure that they do not go under. The worry of jobs being automated should be separated from this argument as well, because if the jobs are truly automatable, then it is going to occur regardless.
Overall, the establishment of a living wage as our federal minimum wage is of great importance, and the only reason it is not already implemented is to protect the bottom line of corporations. While economic pressures that would make this difficult do exist, it is nothing that cannot be overcome.