In recent decades we have witnessed a significant income gap, between the so-called, the haves and the have-nots, in this nation! While executives and CEOs have always earned significantly more than employees, which is understandable, the margin/gap increased more than three times (from about 20 times to more than 60 times). There are regularly discussions, in Congress, about whether or not the minimum wage should be raised, and if so, by how much! After the last few years, where we’ve seen a widening gap, with the election of a new president and a change of party, in terms of control of both houses, of Congress, once again, this debate is happening. ! Since the minimum has not increased in over a decade, it obviously no longer creates the intended protections for those, the majority, in need. With that in mind, this article will attempt to briefly consider, examine, review and discuss 5 considerations in terms of assessing where this nation should go and why.
1. Can companies afford it?: Opponents of increasing this, or the amount of the increase, often claim that businesses cannot afford this additional cost. Yet one of America’s most successful corporations, costcoYou have, for years, paid this amount and more, and simply said, the new minimum would now start at $16 per hour. In fact, recently, when the CEO of costco, testified, in front of the Senate, questioned one of the senators, Lindsey Graham, and wondered why this individual was so opposed to it! How much of an impact it would, the bottom line, is an interesting question because while it could increase salary costs, it could also help, keeping employees and reducing the cost of hiring new ones.
2. Will you cut/reduce certain jobs?: In some industries, raising wages could lower them, at the low end, and replace them with automation, etc. That seems to be the trend though, anyway! A united nation and a group of leaders would seek to create better and better paying jobs!
3. $7.25 minimum wage, hasn’t gone up in years: The last time the minimum wage was raised was July 24, 2009, and in terms of inflation, the earnings considered have certainly not been maintained! In fact, in the amount, in about two-thirds, of all the states, people couldn’t pay, median rents, etc.
4. Widening income gap: The impacts of the 2017 tax reform legislation, where the richest were the biggest beneficiaries, and the lack of significant general wage increases, combine to contribute, mostly, to the widening income gap.
5. What do the numbers mean?: 40 hours, per week, at $7.25 per hour, equals $290 per week, or $15,080 per year! Since, according to experts, we should only be paying a quarter to a third of our salary on housing, it would be only $315 to $415 per month. Shouldn’t someone, working full time at the very least, be able to afford to reside and pay rent?
Is it politics, or politics and greed, that drive certain politicians to oppose a raise or suggest a smaller one? More than half of the states have minimum wages higher than the national!
