By: Hannah Ury, Staff Writer
Alongside stimulus checks and small business loans, the federal minimum wage has been a topic of popular discussion amidst the COVID-19 pandemic. Conservatives argue it is not the time to raise the minimum wage, and progressives argue it is long overdue. As we’ve watched our economy crumble over the course of one hectic year, we’ve all come to the same conclusion: something needs to change. One of those things is the minimum wage.
Raising the federal minimum wage is absolutely essential if we want to attempt to remedy the destruction the pandemic has done to our economy. Prior to the 1980’s, when Ronald Reagan’s principles of trickle-down economics were first put into action, the minimum wage increased annually with inflation, and as the economy grew, the minimum wage went up. This is why we hear stories from our parents and grandparents about waitressing their way through college, or buying their family home at 25. The minimum wage was proportional to the economy in a way that we haven’t seen in almost 40 years, so their life’s savings got them a lot further than ours will today.
Young people, especially college students, are invested in raising the minimum wage. Often the picture that comes to mind when thinking of a minimum wage worker is a teenager working in fast food or retail. However, the reality is that in 2017, 40% of workers making minimum wage were over the age of 25, according to the Bureau of Labor Statistics. A lot of these older minimum wage workers were women, and a disproportionate number were people of color. Keeping the minimum wage low is not simply forcing teenagers to learn the value of hard-earned money, it’s a tool being used to maintain oppression of already marginalized groups.
Many people criticize raising the minimum wage by saying that it will simply cause unemployment to rise in those same marginalized groups, as companies will not be able to afford increased wages for all of their employees. While this might be true in a small number of instances, it is clear that the overall benefits outweigh the possible negatives. This narrow view of the economy fails to take into account what happens after workers receive higher wages. These people, who now have increased spending power, will put more money back into the economy through spending on things like groceries, electronics, and cars. Their increased spending will allow the recipients of their money to create more jobs, and eventually the net result is an improvement for all.
This might seem complex, but it is really quite simple. The poorest people in America today have luxuries that the richest people one hundred years ago couldn’t even dream of. Even the most poor people in America often have smartphones, televisions, and cars. In short, the economy has grown, technology has grown, and as a result everyone has benefited. As the tide comes in, even the smallest boats will rise with the water line, and a similar principle applies to the economy and the minimum wage quite well. Creating more money in the economy through raising the minimum wage will benefit everyone, and the proof is in our very own history.