The minimum worker wage in the United States has remained the same since 2009. However, many companies and fast food chains have experienced tremendous growth in recent years. According to sources, from the beginning of the Fight for $15 movement until now, many organizations have generated revenue worth millions every year. Such as McDonald’s, Burger King, and Wendy’s, to name a few.
On the contrary, the workers of these organizations are still facing the same minimum wage crisis. This will have a significant impact on the cost of living in the United States.
A step towards a new era of increased minimum wages
The ongoing pandemic represents a massive setback for minimum-wage workers. Almost all food chains and small businesses closed their doors in the past year. This pandemic has had a huge impact on workers with rising costs of living. People were also unable to cover their daily expenses.
As compensation, the US government was keen to compensate for the huge losses in the economy. In 2021, nearly two dozen states in the United States increased their minimum wages for workers. Although the salary varies from state to state, on the bright side, workers seem to celebrate it regardless of the comparisons. Since 2007, the federal minimum wage for a worker has been $7.25.
After many protests and rallies, the estimated average minimum wage stands at $12 (only states that have passed a minimum wage increase law) in 2021. With the pace and growth among industries and their workers, by 2025, minimum worker compensation will rise to $15 For the hour. A gradual reduction to $15 per hour would have a positive impact on workers and the economy as well.
benefits
If the minimum wage is $15 in 2025, 21% of the U.S. workforce would see a massive benefit. The average worker’s income is $25,000 annually. If the $15-an-hour scheme came into the picture, workers would receive an additional $3,300 per year. In 2020, 59% of families were below the poverty line, according to reports.
But in 2025, only 18% of households in the United States will be below the poverty line. Starting to reverse decades of growing wage inequality between low-wage and middle-wage workers will start with the $15 system, especially between races and genders in the United States.
In 1960, a rise in the wage rate turned the tables by 20% in reversing wage growth among black whites residing in the United States. The cost of living at that time was considerably low compared to the cost of living now. About $107 billion would be generated from the higher minimum wages for workers in the $15-an-hour scheme.
This will have a positive impact on communities in the United States. Stimulating the economy will also grow gradually. It will also provide greater business quality and job growth. All these factors combined will stimulate economic development in the country. And helping millions meet the costs of living in the United States.
How a state’s minimum wage helps the economy
With the increase in the minimum wage in the country, the workers and the country as a whole will be helped. Or at least there won’t be any major damage to the economy. But there are limitations when it comes to raising the minimum wage without affecting business growth. The theory behind this scheme is that the consumer will have the upper hand in spending more. It will also automatically contribute to the development of the economy. Therefore, the additional pay will gradually help workers achieve their goals and help them cross the river of living costs.
Some economists believe the $15 plan and the minimum wage increase in 2020 will have a negative impact. This is for small business owners as it will be difficult for them to pay the higher minimum wages to their workers through the sales volume they generate monthly. Another speculation is that job growth will decline. Smallholders will be keen to work with fewer employees as higher minimum wages will be difficult to afford.
The role of the audience
According to reports, the public has always shown enthusiastic support for increasing the minimum wage. About two-thirds of people residing in the United States support this scheme. In 2021, support for Democrats (86%) was greater than support for Republicans (43%). On the contrary, more than half of the Republican community (56%), whose annual income is less than $40,000, expressed their support for the $15 plan.
Furthermore, over 94% of the black community were constantly protesting for an increase in the minimum wage. The great part is that there will be more equality between races after the scheme is completed. There is tremendous support across the country. This will be the change that will affect the cost of living to a large extent.
Lower costs of living in the coming years
With the overwhelming support of people across the country, there will certainly be an increase in the federal minimum wage in the coming years. All protests and appeals will push the government to take important steps to increase the minimum without affecting companies and their owners. Soon, there will be a significant reduction in the cost of living and the morale of the people will be lifted by meeting their daily needs.