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Issues · minimum-wage · Economy & taxation

Federal minimum wage

The federal floor for hourly wages — $7.25 since 2009, the longest stretch without an increase since the law was enacted — and proposals to raise it to $15-17.

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The federal minimum wage has been $7.25/hour since 2009. Thirty states and many cities have higher minimums, with several (CA, NY, MA, WA) at or near $15-17 and rising. The federal tipped-wage minimum is $2.13/hour for tipped workers in many states.

Proposals like the Raise the Wage Act would phase the federal minimum to $17/hour by 2028 and eliminate the tipped subminimum.

Empirical research on minimum-wage increases is contested. Card-Krueger (1994) and many subsequent studies find modest or no employment effects from moderate increases; Neumark-Wascher and others find more negative effects. There's broader agreement that very large increases relative to local median wages have stronger negative effects.

Spectrum of framings

How adherents on each side of the conventional left / center / right spectrum frame this issue — written so each camp would recognize the framing as charitable.

left

Most progressives strongly support a $15-17 federal minimum and elimination of the tipped subminimum.

center

Many moderates favor a modest increase indexed to local cost of living, or regional minimums.

right

Most conservatives oppose federal minimum-wage increases, favoring state and local determination.

Perspectives

Each perspective is presented in terms its advocates would recognize, with the concerns they treat as paramount. None is endorsed.

  • Raise-the-wage advocates

    No full-time worker should live in poverty. A $17 minimum lifts millions out of poverty with modest employment effects, especially in low-cost regions where adjustments can be phased.

    • Working-poverty alleviation
    • Reducing dependence on public assistance
    • Closing gender and racial wage gaps

  • Employment-cost skeptics

    Large minimum-wage increases price low-skilled workers out of the market, especially in low-cost regions. The EITC and direct income support are better-targeted.

    • Disemployment of low-skilled workers
    • Regional cost-of-living differences
    • Small-business margins

  • Indexing / regional reformers

    Tie the minimum wage to local median wages or cost-of-living. Avoids one-size-fits-all federal mandates while ensuring real-wage adequacy.

    • Regional economic differences
    • Avoiding political stalemates over future increases
    • Predictability for employers

Voices on this issue9

Commonly-cited public figures who have taken a position on this issue. Grouped by their conventional left/center/right lean. Tap a voice to see their full position record.

left8

right1

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