The Unfulfilled Promise of $15 Minimum Wage: Why We Haven't Reached This Milestone
The battle for a $15 minimum wage continues, but significant obstacles remain. The ongoing global pandemic has shuttered numerous small businesses, with half of the U.S. economy relying on these enterprises. Without a substantial improvement in economic conditions, a federal mandate for a $15 minimum wage seems distant. However, major national franchises, such as grocery stores, could see a different outcome.
Framing the Issue
Passing a federal law mandating a $15 minimum wage is straightforward, but the challenge lies in ensuring such a law is effective. Business owners are known for finding ways to adapt and resist changes. Witness the proliferation of self-service options in various industries, from ordering kiosks in fast food restaurants to self-service gas stations.
The Role of Federal vs. State Government
The power of the federal government is limited, and the decision on minimum wage is typically left to individual states under the concept of 'state rights.' Governors and state residents make decisions regarding minimum wage laws based on their local needs and economic conditions. For instance, the previous federal minimum wage was not applicable to all states; many set their own rates.
Political Dynamics and Partisan Divide
The lack of a $15 minimum wage can be attributed to political dynamics. Republicans oppose the increase, believing that a significant wage hike is too drastic for many Midwestern workers. This opposition shows up even among some Democrats, with concerns that a rapid rise might be too much too fast.
From a procedural standpoint, the minimum wage increases were not included in the COVID relief bill due to Senate rules. House Speaker Pelosi and Senate Leader Schumer aimed to pass the bill under budget reconciliation, which cannot be filibustered. However, the Senate parliamentarian ruled that increasing the minimum wage was not a budget issue. Consequently, it must be addressed through the standard legislative process, which can include a potential filibuster and thus, 60 votes are required.
On a broader party level, Democrats want to secure major policy victories, making it easier for Republicans to oppose the measure as a way to gain political leverage in future elections. These dynamics illustrate why a simple mandate isn't sufficient.
Policy Debates and Economic Impact
Setting a federal minimum wage to $15 is highly debated among policymakers. Many argue that such a significant increase would be ineffective in addressing poverty. There are numerous principled arguments against raising the minimum wage, suggesting that it might not lead to substantial improvements in the lives of low-income workers.
Practically, setting a $15 minimum wage could have adverse effects in certain areas, leading to job cuts or lower employment rates. The impact would vary across different demographic groups, with some positively affected and others negatively.
The debate also extends to the level of government that should regulate minimum wage. Should it be federal, state, county, or city-level? Another critical question is whether the federal government should have the power to declare certain job offers illegal if they fall below a certain wage threshold.
These intricate debates highlight the ongoing challenges in achieving a $15 minimum wage at the federal level. While the battle continues, understanding these complexities is essential for policymakers and citizens alike.