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house Bill H.R. 122

Raise the Minimum Wage to $13 an hour?

Argument in favor

Economic inequality is rampant in the U.S. today. Raising the minimum wage will ensure that workers can support themselves and their families while helping in the economy grow in a sustainable way.

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05/19/2015
"Over a period of a few years the national minimum wage should be $15 per hour. Nobody who works 40 hours a week should be living in poverty."
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Stephen's Opinion
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05/01/2015
Workers with wages so low that they qualify for foodstamps are like giving welfare to corporations. Better paid workers can buy more and stimulate the economy.
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JohnC1957's Opinion
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05/01/2015
While I am not sure that $13 is the right number, the main thing is that it becomes tied to inflation. 6 months after the Government issues the CPI for the year, the minimum wage should be adjusted accordingly. This give Business's the ability to plan and ensures that the lowest earning people keep the same buying power. These people spend the most percentage of their income on goods and services. This is the best way to stimulate the economy.
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Argument opposed

Why should the minimum wage for a single person with no dependents be above the poverty level for a family of four? This bill will cost people their jobs and increase unemployment.

Eric's Opinion
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05/01/2015
The minimum wage in this country should be the same as the maximum wage. There shouldn't be one. Some jobs are not meant to nor should they provide a livable wage. They are a step into the workforce. Raising minimum wage will raise prices on many good and services and then we are stuck with the same issue again. And yet again people will think that raising the minimum will solve it.
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Russell's Opinion
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05/14/2015
I really wish I could vote yes for this. Unfortunately, this is only a temporary solution. Raising the minimum wage may allow families to more easily support themselves but eventually companies will inevitably raise the prices of their products to offset their loss in revenue, accelerating inflation. Before long, minimum wage workers will be back where they started and non-wage workers who's pay checks were not affected by this bill will be at a greater disadvantage. The only way I see the decrease of poverty in this country is companies themselves making the decision to sacrifice profits for the well-being of their employees.
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Derek's Opinion
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05/01/2015
Alright, let me break this down..... Businesses cost money to operate. The overhead they pay includes, but is not limited to rent, vehicles, inventory, and WAGES. On top of those wages, they have to pay social security, FICA, and a myriad of others. By increasing a business' overhead, you automatically put them in a dire spot where cuts will have to be made to make sure the business has a chance to survive. The first thing to go is employees. Increasing the minimum wage will only increase unemployment. Secondly, and probably most importantly, the MARKET determines what an employee is worth. I make a damn good living because the skills that I have (electronics and radar theory) are in demand. They are specialized skills that are not common. If you don't have any skills, you are not marketable and therefore are not worth $13/hr. In my opinion, you're not even worth $7.25/hr. If you want to make money, learn skills!!! Carpentry, welding, auto mechanics, plumbing, electrical... Do you have any idea how much a person with their Master Plumber's Certification makes?? It's easily 6 figures, and you won't owe $200k in student loans!! Stop being naive and work!!
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What is House Bill H.R. 122?

This bill would up the federal minimum wage, allowing people who work minimum wage jobs to earn at least 15 percent higher than the federal poverty level for a family of four. That comes to about $24,400 annually or around $13 per hour


$13 an hour wouldn't be set in stone, but it would be the new minimum. The federal minimum wage would be re-calibrated every four years to adjust for inflation — unless the adjustment would result in a lower wage in which case no adjustment would be made.


States would still be allowed to set their minimum wages at a level exceeding the federal minimum wage.

Impact

People working minimum wage jobs, their families, business owners and employers, the U.S. economy, and the workforce over all.

Cost of House Bill H.R. 122

A CBO cost estimate is unavailable.

More Information

In-Depth:

Currently the federal minimum wage is $7.25 per hour. 29 states and the District of Columbia have state minimum wages that exceed the federal level. D.C. has the highest minimum wage, set at $9.50 an hour. Washington state boasts the second highest at $9.47 an hour.


Sponsoring Rep. Al Green (D-TX), said that his legislation “should accelerate the growth of our economy and provide greater opportunity as well as prosperity for all Americans, not just the privileged few.”


Of Note:

In February 2014, the CBO analyzed the effects of two minimum wage increase proposals — one that would raise the minimum wage from $7.25 to $9 per hour, and another that would raise it to $10.10 per hour. The CBO’s central estimate for the $9 per hour proposal projected a decrease in employment of 100,000 workers, while its central estimate for the $10.10 per hour option was a decrease of 500,000 workers. It also found that of the $31 billion in increased wages that would be earned, only 19 percent of that total would go to families earning below the poverty level, while 29 percent would go to families earning more than three times the poverty level.


The findings of the CBO’s analysis seem to coincide with those of other research, including the American Action Forum — that found that a $1 increase in the minimum wage corresponded with a 1.48 percent increase in unemployment. The Mises Institute describes the underlying relationship between the minimum wage and employment

“Minimum wage increases make it more likely that firms won’t hire new people… companies are moving toward more automation, at least partly because of minimum wage increases.”


However, the Economic Policy Institute’s research on the minimum wage offers dissenting findings from both the CBO and other sources. It projects that increasing the minimum wage to $10,10 per hour would create an additional 84,800 jobs across the U.S. while increasing national income for affected workers by nearly $35 billion.


Media:

Sponsoring Rep. Al Green (D-TX) Press Release

CBO Analysis (Context)

American Action Forum (Context - Opposed)

Mises Institute (Context - Opposed)

Economic Policy Institute (Context - In Favor)


Summary by Eric Revell
(Photo Credit: Flickr user Annette Bernhardt)

AKA

Original Living Wage Act of 2015

Official Title

To amend the Fair Labor Standards Act to provide for the calculation of the minimum wage based on the Federal poverty threshold for a family of 4, as determined by the Bureau of the Census.

bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house has not voted
      house Committees
      Committee on Education and Labor
      Workforce Protections
    IntroducedJanuary 6th, 2015
    "Over a period of a few years the national minimum wage should be $15 per hour. Nobody who works 40 hours a week should be living in poverty."
    Like (283)
    Follow
    Share
    The minimum wage in this country should be the same as the maximum wage. There shouldn't be one. Some jobs are not meant to nor should they provide a livable wage. They are a step into the workforce. Raising minimum wage will raise prices on many good and services and then we are stuck with the same issue again. And yet again people will think that raising the minimum will solve it.
    Like (212)
    Follow
    Share
    Workers with wages so low that they qualify for foodstamps are like giving welfare to corporations. Better paid workers can buy more and stimulate the economy.
    Like (154)
    Follow
    Share
    While I am not sure that $13 is the right number, the main thing is that it becomes tied to inflation. 6 months after the Government issues the CPI for the year, the minimum wage should be adjusted accordingly. This give Business's the ability to plan and ensures that the lowest earning people keep the same buying power. These people spend the most percentage of their income on goods and services. This is the best way to stimulate the economy.
    Like (117)
    Follow
    Share
    I really wish I could vote yes for this. Unfortunately, this is only a temporary solution. Raising the minimum wage may allow families to more easily support themselves but eventually companies will inevitably raise the prices of their products to offset their loss in revenue, accelerating inflation. Before long, minimum wage workers will be back where they started and non-wage workers who's pay checks were not affected by this bill will be at a greater disadvantage. The only way I see the decrease of poverty in this country is companies themselves making the decision to sacrifice profits for the well-being of their employees.
    Like (96)
    Follow
    Share
    Alright, let me break this down..... Businesses cost money to operate. The overhead they pay includes, but is not limited to rent, vehicles, inventory, and WAGES. On top of those wages, they have to pay social security, FICA, and a myriad of others. By increasing a business' overhead, you automatically put them in a dire spot where cuts will have to be made to make sure the business has a chance to survive. The first thing to go is employees. Increasing the minimum wage will only increase unemployment. Secondly, and probably most importantly, the MARKET determines what an employee is worth. I make a damn good living because the skills that I have (electronics and radar theory) are in demand. They are specialized skills that are not common. If you don't have any skills, you are not marketable and therefore are not worth $13/hr. In my opinion, you're not even worth $7.25/hr. If you want to make money, learn skills!!! Carpentry, welding, auto mechanics, plumbing, electrical... Do you have any idea how much a person with their Master Plumber's Certification makes?? It's easily 6 figures, and you won't owe $200k in student loans!! Stop being naive and work!!
    Like (72)
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    Limiting CEO pay to 10 times the lowest paid full time equilivent is the real answer. Until then, yea. Even though it will spike inflation.
    Like (43)
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    Yes, yes, a million times yes. Raising the MW does not cost jobs. Corporations and the 1% have been tilting the board towards their end for decades. All people want is the dignity of earning a wage they can actually live and prosper on.
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    "Raising the minimum wage is about economics, but it's also about our values. Nobody who works full time should live in poverty." [twitter/senwarren]
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    This will kill the economy and I'm a minimum wage worker, plus I'll lose my job.
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    "We must fight for better wages for all workers, so that Americans can actually live on what they earn." [martinomalley.com]
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    If the minimum wage increases to $13/hour then I expect my hourly wage to increase too since I've worked my way up from the bottom. I make $11.25/hour as of now and I started at $9/hour. So if the minimum wage was set at $13/hour for a low-level, low-skill, little-to-no experience job then I expect my job's wage to increase proportionally...meaning that I would get paid over $15/hour for sure as a result of my value in human capital to my employer. $9/hour as minimum wage I can understand. $13/hour to flip burgers and take my order is excessive. You need to start at a lower wage in an entry-level position in order to gain experience and skills, which makes you more valuable in the eyes of your employer; a wage increase then follows. Not the other way around.
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    People need to make at least 15 an hour. It also has been proven that raising the minimum wage does not cause jobs or hurt business owners.
    Like (15)
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    Increased minimum wage will create a surplus of workers. Surplus of workers is unemployment! Lower the minimum wage. Basic economics people. Other people have claimed that workers sometimes get food stamps or welfare because they are paid so little; that's a problem with our welfare state! Not minimum wage.
    Like (11)
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    We are globally behind in keeping up with minimum wage. It reveals successful and increases productivity in its workers when analyzes private domestic companies or international nations mandating it.
    Like (8)
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    Minimum wage was never a thing to live on. It is designed for people to get on their feet and students who need money to support their time while working for their education. We can't make it a living wage when it's whole objective is a good one. Work your way up for a living wage. Because begging to raise minimum wage will only allow everything to cost more and stop yourself from trying to make something of yourself..
    Like (8)
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    Raising the minimum wage will not pull people out of poverty, most minimum wage jobs are in the service sector of our economy. People in occupations like EMT make roughly the same wage. Are service jobs more important than EMT's?
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    It's a myth that raising the minimum wage will only benefit teens. In fact. 88% of those who would benefit are 20 or older, and 55% are women! (According to the Department of Labor).
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    Increase in wage inevitably leads to increase in cost of living. Rather than create inflation, seek to lower costs, taxes and other financial burdens that weigh on low income citizens
    Like (5)
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    Minimum way is not meant to support families. It's meant as a springboard to greater, other opportunities. If the individual is not proactive in taking/creating those opportunities, that is on them. It's not the greater public's/business owner's responsibility to support them for their lack of initiative.
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