A tale of two minimum wages
Summary
TLDRThe video script delves into the complexities of minimum wage in the United States, highlighting the disparity between the federal minimum wage of $7.25 and the higher rates set by some states and cities, like Seattle's $15 per hour. It discusses the economic debate surrounding wage increases, with proponents arguing they benefit low-income workers and opponents fearing job losses. A study by the Economic Policy Institute is mentioned, showing that wage hikes in certain areas have positively impacted low-wage earners, particularly women and people of color. The script also touches on the historical value of minimum wage, noting its decrease in real terms due to inflation, and the growing divide between areas with static and indexed minimum wages.
Takeaways
- 😕 Minimum wage jobs are difficult, with workers knowing they cannot be paid less by law.
- 💵 The U.S. has a complex system of minimum wages, including a federal wage and higher state/local wages.
- 📉 The federal minimum wage is $7.25 and has not been raised since 2009.
- 🏙️ Some cities and states, like Seattle and New York City, have raised their minimum wage to as high as $15 an hour.
- 🌍 About 39% of Americans live in areas where the federal minimum wage is the floor, while 61% live in places with higher minimum wages.
- 📈 Minimum wage increases are controversial, with proponents arguing it boosts wages for low-income workers and opponents fearing job loss.
- 🔬 A recent study found that between 2013 and 2017, places with minimum wage increases saw low wages rise by 5%, especially benefiting women and people of color.
- 📊 In states that did not raise their minimum wage, wage increases were less than half of the 5% seen in states that did.
- 📉 Due to inflation, the federal minimum wage of $7.25 is worth less than it was 60 years ago when adjusted for inflation.
- ⏳ While some states have indexed their minimum wage to inflation, the federal minimum wage requires proactive action from Congress to be raised.
Q & A
What is the current federal minimum wage in the United States?
-The current federal minimum wage in the United States is $7.25 per hour, which has been in place since 2009.
Which city has the highest minimum wage in the country?
-Seattle has one of the highest minimum wages in the country, with a rate of $15 per hour.
What is the minimum wage in New York City?
-New York City's minimum wage is up to $15 per hour.
What is the minimum wage in New Hampshire?
-In New Hampshire, the minimum wage is as low as $7.25 per hour as of 2017.
What percentage of the U.S. population lives in a place where the federal minimum wage is the standard?
-39 percent of the country lives in a place where the federal minimum wage is the standard.
How much has the minimum wage increased in states that have raised it between 2013 and 2017?
-In states that have raised the minimum wage between 2013 and 2017, low-wage workers saw an increase of 5%.
How has the minimum wage increase affected women in the bottom 10th percentile of workers?
-The minimum wage increase boosted the wages of women in the bottom 10th percentile of workers by 5 percent in states that raised the wage.
What is the impact of inflation on the purchasing power of the minimum wage?
-Due to inflation, the minimum wage gets weaker every year it isn't raised. The $7.25 from 2009 is only worth 86 cents now.
How does the federal minimum wage get increased?
-The federal minimum wage is increased by Congress passing a law and the President signing it.
What is the alternative method to increase the minimum wage automatically?
-An alternative method is to index the minimum wage to inflation, automatically increasing it to match inflation.
How many states and Washington DC are planning on indexing their minimum wages to inflation?
-18 states and Washington DC have or are planning on indexing their minimum wages to inflation.
Outlines
💼 The Challenges of Minimum Wage Jobs
Working for minimum wage is tough, as employees deal with hard work and the knowledge that their employers are legally restricted from paying them less. The federal minimum wage in the U.S. has been $7.25 since 2009, but many states and cities have raised their wages above this. In places like Seattle and New York City, the minimum wage is as high as $15 an hour, while states like New Hampshire still adhere to the federal minimum of $7.25. In 2017, about 39% of the U.S. population lived in areas with just the federal minimum wage, while 61% lived in places with higher wage levels.
⚖️ The Debate over Raising the Minimum Wage
The debate around raising the minimum wage is long-standing. Advocates argue that raising wages will help low-income workers earn more money, while opponents claim it could reduce employment and ultimately harm workers. The discussion remains polarized, with strong arguments on both sides.
📊 Real Impact of Minimum Wage Increases
A study by the Economic Policy Institute (EPI) showed that between 2013 and 2017, areas that raised the minimum wage saw a 5% increase in wages for the lowest-paid workers. In contrast, states that didn’t raise their wages saw much smaller increases. The same study highlighted that women and people of color, who are disproportionately represented in low-wage jobs, benefited more from these increases.
💵 Inflation’s Erosion of the Minimum Wage
The federal minimum wage has been stuck at $7.25 for over a decade, which means its value decreases over time due to inflation. A dollar from 2009 is now only worth 86 cents, diminishing the buying power of minimum-wage workers. When adjusted for inflation, today’s minimum wage is actually worth less than it was 60 years ago.
📈 Indexing the Minimum Wage to Inflation
Raising the federal minimum wage requires Congressional action, but an alternative solution is to tie wage increases to inflation automatically, similar to how Social Security works. Some states have already adopted this approach. Currently, 18 states and Washington D.C. have implemented or are planning to implement inflation indexing for their minimum wage, further widening the gap between states with higher and lower wage standards.
Mindmap
Keywords
💡Minimum Wage
💡Federal Minimum Wage
💡State and Local Minimum Wage
💡Inflation
💡Economic Policy Institute Study
💡Women and People of Color
💡Indexing to Inflation
💡Wage Floor
💡Employment Effects
💡Congress and Policy Change
Highlights
Working for minimum wage is challenging due to the hard work and the knowledge that pay cannot legally go below a certain level.
There is no single minimum wage in the U.S.; it varies by states, cities, and counties.
The federal minimum wage has been $7.25 since 2009.
Some places like Seattle and New York City have a minimum wage of $15 an hour, the highest in the country.
In contrast, states like New Hampshire have a minimum wage as low as $7.25 an hour.
39% of the U.S. population lives where the federal minimum wage is the standard, while 61% live in areas with a higher minimum wage.
The divide between areas with different minimum wages is growing.
The minimum wage is a controversial economic topic with arguments on both sides regarding its impact on workers and employment.
A study by the Economic Policy Institute found that minimum wage increases in certain areas boosted low wages by 5% from 2013 to 2017.
In states without minimum wage increases, the wage increase was less than half of that in states with increases.
The wage increase benefited women in the bottom 10th percentile of workers by 5 percent, compared to less than 1% in states without increases.
Women and people of color are disproportionately represented in low-wage jobs, making minimum wage increases particularly significant for these groups.
The federal minimum wage does not automatically increase with inflation, leading to a decrease in its value over time.
The minimum wage has lost value compared to its worth in the 1960s when adjusted for inflation.
To raise the minimum wage, Congress must pass a law, which the president then signs.
Automatically increasing the minimum wage to match inflation, like Social Security, has been adopted by some cities and states.
Currently, 18 states and Washington DC have or are planning on indexing their minimum wages to inflation.
Transcripts
working for the minimum wage isn't fun
the work is hard and then you also have
to work with the knowledge that your
boss is literally prevented by law from
paying you less money even if they
wanted to but there isn't just one
minimum wage there's actually a whole
tangled mess of them throughout the
country yes you have the National long
that's 725 and it's been that since 2009
but across the country states and cities
and counties have chosen to raise their
minimum wage higher than the national
one so in places like Seattle and 2090
New York City the minimum wage is up to
$15 an hour
that's the highest but then you go to
New Hampshire you can make as little as
725 an hour as of 2017 39 percent of the
country lives in a place where the
federal minimum wage was the floor the
other 61% live in places where it's
raised higher the divide between those
two worlds is growing larger and larger
and we know that the minimum wage is and
will probably always be one of the most
controversial topics in economics on one
side you have people saying it needs to
be raised because if you raise it it'll
help lower-income workers make more
money then you have opponents saying
that raising the minimum wage will
actually lead to lower employment and
then the end workers will make less
money you've heard these arguments
before so let's look into it
how have minimum wage increases actually
affected those making the lowest wages a
recent study came out by the Economic
Policy Institute that found that between
2013 and 2017 places that have seen
minimum wage increases saw low in wages
boosted by 5% in states that haven't
raised the minimum wage the increase was
less than half of that the same study
also showed that the increased boosted
the wages of women in the bottom 10th
percentile of workers by 5 percent
that's compared to less than the 1% in
states that hadn't raised the wage that
makes sense considering that women are
disproportionately represented in
low-wage jobs that's also true for
people of color it's not just the
increased wages themselves that matter
it's also how those increases are coming
to be right now the federal minimum wage
number is fit
it's been stuck at 7:25 for about a
decade and because inflation exists the
minimum wage actually gets weaker and
weaker every year that it isn't raised
so that 2009 dollar is only worth 86
cents now here's a chart of the actual
dollar amount of the minimum wage since
its beginning in the 30s now here's a
chart for the inflation adjusted a
number we could see that right now when
you account for inflation the minimum
wage is actually worth less than it was
60 years ago so to actually raise the
minimum wage Congress has to proactively
pass a law and the president has to sign
it
and while minimum wage increases are
broadly popular politically recently
that hasn't been the case
President Obama spent his entire term
trying in vain to raise the minimum wage
to no avail the alternate is to treat
the minimum wage like Social Security
and automatically increase it to match
inflation and over the last decade a
number of cities and states have decided
to do just that right now 18 states in
Washington DC have or are planning on
indexing their minimum wages to
inflation so with each passing year the
39 percent and the 61 percent grow
further and further apart
Weitere ähnliche Videos ansehen
Dave Ramsey Is Going To Get Hate for This
O NOVO SALÁRIO MÍNIMO VAI DESTRUIR O QUE RESTAVA DO BRASIL | BRUNO MUSA
How Does the Minimum Wage Work?
Ketenagakerjaan 2 - Masalah Ketenagakerjaan di Indonesia, Pengangguran, dan Sistem Upah
Silver vs Fiat: The Fall of Minimum Wage in Real Terms | Mike Maloney
PSA - Pamilyang may 5 miyembro sa NCR, kailangan ng P15,713/buwan para ‘di ituring na... | 24 Oras
5.0 / 5 (0 votes)