A tale of two minimum wages

Summary

The 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.