A debate that has been raging on for a decade now has recently jumped backed into the mainstream conversation thanks to President Biden including a $15/hour minimum wage in his COVID relief package (link). That made me happy to hear but it has brought conservatives back out raging against why we simply cannot do that.
It is way past due for companies to start paying their employees a living wage. Conservatives have bragged about the thriving Trump economy and stock market but then turn around and say these companies cannot possibly afford to pay their employees a living wage. The pandemic is not an excuse either as many companies have continued to thrive while the average American suffers. I will give them that it will be tough for some small businesses, however, a person should be able to work 40 hours a week and be able to afford food and a place to live.
I would make an argument to the right that raising the minimum wage is good for the economy. Paying people a living wage will put more money in people’s pockets and in turn add more consumers to the market. As a big proponent of a trickle up economy it has always just made sense to me, give people more money more people will spend money and businesses will get more business. Pay people a living wage, cut them 2k relief checks, get a good chunk of people vaccinated by the summer and you will see the American economy boom back into business in a big way.
The right will argue that raising the minimum wage will force these companies to hike up their prices a bunch, with the classic example being that Taco Bell will start charging prices similar to a sit down restaurant, but that just isn’t likely. That’s the beauty of the free market, if a company hikes up their prices in response to paying their employees more, their competition will simply keep their prices the same and take all of their business and force them to come back down or go out of business. Also, prices have already been going up the past decade while the minimum wage has remained the same.
One thing companies can do to combat a minimum wage increase is to stop grossly overpaying their CEO. For example, the CEO of McDonald’s brought in $21.8 million in 2017 while the average crew member brought in $8.50 an hour. In order for a crew member to make what Steve Easterbrook did in one year they would have to work 293 years straight, that is just staggering to me. Of course a CEO deserves a lot more compensation than an entry level crew member but the gaps it has gotten too across all these companies is just gross.
I know it is still an uphill battle but I hope this is able to get pushed through and passed, it is way past due for it.
Green Buddhist 