Minimum WageCan you imagine a entry level McDonald's worker making the same wage as a entry level teacher? If the minimum wage was raised to $15/hr your typical McDonald's employee would make $30,000 annually (working 2,000 hours). According to Florida Atlantic University the average annual income for an entry level teacher is $33,227.
Minimum wage has been a controversial issue. People aren't making enough money to live the lifestyle they want. If we were to raise the minimum wage then they could live the lifestyle they want but it would come with some costs. One of the most major of costs would be the loss of employment. Raising the minimum wage would cause a large amount of layoffs. Companies wouldn't be able to afford their employees causing a large amount of unemployment.
One major argument for raising minimum wage is to compensate for inflation. In order to raise the minimum wage to match earlier values the current rate would be about $10/hr. We lived through the sixties so why wouldn't we make it now with a minimum wage to match it.
I think that we wouldn't be able to afford it because of the rising population. Looking at the data of population and minimum wage there is a strong correlation.
If you over lap the two graphs you can see that the minimum wage has grown with the population size and raising it would not be affordable. In fact our minimum wage is higher in comparison than ever before.
The federal minimum wage is $7.25/hr. Most states have raised their minimum wage above the federal minimum wage. Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, D.C., Florida, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, Ohio, Oregon, Rhode Island, South Dakota, Vermont, Washington, and West Virginia. The only states with a minimum wage lower than the federal wage are Georgia and Wyoming. Companies in Georgia and Wyoming have to follow the federal Fair Labor Standards Act and pay the federal minimum wage of $7.25. But employees not covered under the FLSA may be paid the state minimum wage of $5.15.
A McDonald's in Phoenix has replaced workers with robots. This is a result of McDonald's recent decline in earnings and because of the demand for a $15/hr wage. It is a huge benefit to McDonald's. The robots work at a speed 50 times faster than the average human employee and without error.
Livable WageIf minimum wage isn't raised people want to consider implanting a "livable wage." Living wage is the minimum income necessary for a worker to meet their needs that are considered to be basic. wikipedia* Where livable wage is used, this means that if a person working +40 hrs/week, they should be able to afford the basics for quality of life, food, utilities, transport, health care, and some recreation, one course a year to upgrade their education and childcare. There is no US state where the minimum wage will pay the rent: At least 60 to over 80 hours a week needed for market-rate one bedroom apartment.
For the people working part-time or not at all. Should they receive benefits to this? Should people have to put in hard work to earn the benefits? If Livable wage is implemented, will it become an alternative version of welfare?
Livable Wage for Wright Co.
Other US Locations: Massachusetts Institute of Technology - Living Wage
Questions for DiscussionShould the U.S. raise the minimum wage?
Can our economy afford a higher minimum wage?
Should the U.S. have a livable wage?
What should be the requirements to gain assistance for a livable wage?
Does welfare already cover livable wage?