The Federal Minimum Wage; Is it Enough?

Protestors march to demand the minimum raise to be enforced at 15 U.S dollar per hour in the Harlem neighborhood of New York. ©Justin Lane, European Pressphoto Agency

What is the Federal Minimum Wage, and Why is it a Problem?

The federal minimum wage, as described by investopedia.com, is “the lowest wage per hour that a worker may be paid, as mandated by federal law.” The current federal minimum pay is settled at $7.25, however, only 29 of the 50 states in the US have been found to have minimum wages above this, leaving workers in 21 states being paid as little as seven dollars per hour, a cost not nearly enough to survive on. The problem with the minimum wage lies not only within the fact that it accounts for such little pay, but as discovered by Investopedia, it also does not fit into the category of livable wages for a family of two of four. Financial journalist, Andrew Bloomenthal, stated that “Today, full-time employees earning the federal minimum annually pocket just $15,080, (if they work 40 hours, each of the 52 weeks in a year), placing them well below the $17,240 poverty line in 2020 for families of two. And minimum-wage earners with families of four fall more than $11,000 below the poverty line of $26,200.”

The low wages paid to minimum wage workers is not sufficient for simply living. The Pitt News provides another insight into the Federal Minimum Wage, providing that the $7.25 hourly pay is before tax. Elise Lavallee, a political science major from the Pitt News, writes that “No one can survive making $7.25 an hour after taxes.” The estimated pay that a minimum wage worker would receive after taxes is $258 a week, leaving the average worker at a meager amount at $13416 a year, which falls almost $4000 below the poverty line. The fact that 82 million people were being paid this amount, as the Bureau of Labor Statistics (BLS) reported, only adds to prove the crisis at hand. “That is 59% of all wage and salary workers in the United States.” usafacts.org stated, adding that “The minimum wage should not be confused with the living wage.

The minimum wage is established by Congress and enforced by the Department of Labor. The living wage is a subjective concept calculated by policymakers and advocacy groups that works backward to calculate a wage to cover the basic needs and expenses of individuals in particular areas.” But what does this mean in terms of what over half of Americans are currently paid? It shows that the reason so many people in the US currently reside in poverty. The Congressional Budget Office further proved this claim with a report published in 2014 that “a wage increase to $9 per hour would lift 300,000 people out of poverty, while an increase to $10.10 would be sufficient to lift 900,000 people out of poverty,” By simply adding 2-3 dollars to the federal minimum wage, we would be able to bring hundreds of thousands of Americans away from and out of the poverty line.

A state protest featuring government workers. ©afl-cio

Exceptions to Minimum Wage

The most detrimental faults in the federal minimum wage lies in the fact that many groups of people are exempt from the federal minimum wage. Workers who receive tips of over $30 a month consistently receive a substantially lower minimum pay of only $2.13 an hour. Workers under the age of 20 may be payed as low as $4.25 an hour by federal law, and anyone with physical or mental disabilities may also be paid lower than the federal minimum wage.

A Wisconsin protest of lights covering the expanse of a bridge. ©Wisconsin Jobs Now

Why Hasn’t Change Been Made?

If there is so much evidence suggesting that the current minimum wage should change, why hasn’t there been? The fact is, we have tried. A few states, including Colorado and Washington D.C. both adjust their minimum wage annually to the cost of living in order to support the minimum wage workers there. The “Fight for 15” Effort, supported mostly by leftists, was a movement that pleaded for higher minimum wages, asking for it to be brought up to $15 to support more people working. Many republicans disapproved of the suggestion, claiming that High schoolers working minimum wage jobs should not require the $15, since many do not need it, and are simply working to earn pocket money. The Pitt News however states that on the contrary, “U.S. college tuition is higher than ever before and plenty of younger Americans could greatly benefit from a higher minimum wage.” Many high schoolers also help their parents with the bills, and need the money for numerous other reasons.

Other efforts, including those by Barack Obama during his presidency, and the US House of Representatives tried to offer change to the federal minimum wage. “Barack Obama signed an executive order to increase the minimum wage of some federal workers to $10.10, reasoning that the overall federal rate should also be raised to that amount.” Pitt News states, although the order was halted in congress, and did not get approved. Many states increased their wages in effect, but it did not spark change to the federal minimum. The US House of Representatives made an effort in 2019 as well, attempting to change the wages through the Raise the Wage Act of 2019. The act would have “gradually increased the federal minimum wage to $15 by 2025.” Pitt News claims, however, the Senate did not approve of the act, and it was yet another unsuccessful attempt to initiate change.

What Can We do to Help?

One of the biggest forms of action we can partake in and spark change is to raise awareness. Advocate for those who are currently being paid a minimum wage, and make sure that the issue of unlivable wages is brought to attention. You can also sign numerous petitions, and you can call your state representative and leave a message about increasing the federal minimum wage.

Links have been attached below of petitions you can sign to raise awareness and to be part of the movement that creates livable wages for all.

Not many petitions have been created to help solve the crisis, so starting one may spark change as well.

• Raise the minimum wage to $15.00/hour, (MoveOn)

• Raise the Minimum Wage, (Move On)

• Write Your Own Petition, (Change.org)

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Works Cited

America, in. “Minimum Wage in America: How Many People Are Earning $7.25 an Hour?” USAFacts, 2019, usafacts.org/articles/minimum-wage-america-how-many-people-areearning-725- hour/#:~:text=How%20many%20people%20earn%20the,paid%20hourly%20rates%20in %202018. Accessed 11 Sept. 2020.

“Can a Family Survive on the U.S. Minimum Wage?” Investopedia, 2020, www.investopedia.com/articles/personal-finance/022615/can-family-survive-usminimum-wage.asp. Accessed 11 Sept. 2020.

“Elaws - Fair Labor Standards Act Advisor.” Dol.Gov, 2020, webapps.dol.gov/elaws/faq/esa/flsa/001.htm?_ga=2.135367345.1621821974.1599849754 -250809561.1599582786. Accessed 11 Sept. 2020. Lavallee, Elise.

“Unlivable Wages: Why the Federal Minimum Isn’t Enough - The Pitt News.” The Pitt News, 15 Sept. 2017, pittnews.com/article/122379/opinions/122379/. Accessed 11 Sept. 2020. “Minimum Wage | U.S. Department of Labor.” Dol.Gov, 2020, www.dol.gov/general/topic/wages/minimumwage#:~:text=The%20federal%20minimum %20wage%20for,of%20the%20two%20minimum%20wages. Accessed 11 Sept. 2020.

“Raise the Minimum Wage.” MoveOn, 2 Sept. 2020, sign.moveon.org/petitions/raise-theminimum-wage-18. Accessed 11 Sept. 2020. “Raise the Minimum Wage to $15.00/Hour!” MoveOn, 11 Sept. 2020, sign.moveon.org/petitions/raise-the-minimum-wage-44. Accessed 11 Sept. 2020.

“State Minimum Wages | 2020 Minimum Wage by State.” Ncsl.Org, 2020, www.ncsl.org/research/labor-and-employment/state-minimum-wagechart.aspx#:~:text=Currently%2C%2029%20states%20and%20D.C.,wage%20of%20%2 47.25%20per%20hour. Accessed 11 Sept. 2020.

“Text - H.R.582 - 116th Congress (2019-2020): Raise the Wage Act.” Congress.Gov, 2019, www.congress.gov/bill/116th-congress/house-bill/582/text. Accessed 11 Sept. 2020.

“Text - H.R.582 - 116th Congress (2019-2020): Raise the Wage Act”---. Congress.Gov, 2019, www.congress.gov/bill/116th-congress/house-bill/582/text. Accessed 11 Sept. 2020.

“What Is the Minimum Wage.” Investopedia, 2020, www.investopedia.com/terms/m/minimum_wage.asp#:~:text=A%20minimum%20wage %20is%20the,offered%20or%20accept%20a%20job. Accessed 11 Sept. 2020.