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Arguably the biggest demand of the progressive activists over the last two years has been a demand for a $15 minimum wage. Striking the nation’s low-wage establishments such as fast food chains, advocates insist that a massive wage hike would significantly dent poverty and provide a sufficient boost to the U.S. economy. The “Fight for $15” movement has scored victories in cities such as Seattle and most recently in New York and California. The Democratic primary has also become ground zero for the debate, with Bernie Sanders favoring a $15 federal minimum wage, while Hillary Clinton has adopted a more reserved approach, putting her support behind a $12 federal minimum wage that could be raised if the economy would support a larger increase. Meanwhile, business groups and conservative economists argue that a $15 minimum wage will most states and cities uncompetitive in a global economy and warn that such policies will increase, rather than decrease, poverty in America. What is clear is that this fall’s presidential election could hinge on the economy and whether Americans should receive another minimum wage increase. As a result, extempers should be prepared to discuss this topic and answer questions about it.
This topic brief will provide some important vocabulary to understand the minimum wage debate, highlight the arguments that are in favor of a wage increase, and detail the arguments that are against a $15 minimum wage.
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Since 2009, the federal minimum wage has been $7.25. The last time that Congress voted for a minimum wage increase was 2007, which occurred in the aftermath of the Democrats winning control of both houses of Congress for the first time since 1995. During last year’s State of the Union, President Barack Obama called for increasing the federal minimum wage and reiterated his support for this on December 5th. President Obama has supported a phased-in minimum wage hike to $10.10, which would go into effect in 2015. Congressional Democrats have supported the President’s plan and argue that a new minimum wage hike should also be indexed to inflation to ensure that minimum wage gains are not eventually diluted by depreciation. With twenty-one states having higher minimum wage levels than the federal government and recurring strikes taking place in the fast food industry, a topic that Extemp Central broke down a few months ago, the debate on a new minimum wage hike could impact the 2014 midterm elections by putting economic inequality back into the national spotlight.
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