Democrats and unions want to see the federal minimum wage raised. However, the vast majority of Americans make more now.
With their eye on the 2020 elections, Democrats at the state and national levels are vowing to increase the minimum wage.
Although a significant number of states have increased the minimum wage paid at the state level, the federal minimum wage has stayed at $7.25 since 2009.
However, despite the fact that the minimum wage remains at $7.25, more than 99 percent of workers in the U.S. make more than the federal minimum wage, reported the Wall Street Journal.
…a tiny share of Americans, just 0.28% of the 156 million civilian workers earned the federal minimum last year, according to the Labor Department. Most of those employees were younger than 25 years old. [Emphasis added.]
In fact, according to Trading Economics, the average hourly wage in the U.S. in July increased to 23.46.
However, in New York City, where businesses have had three minimum wage increase in three years—an increase of more than 36 percent over the last two years from the $11 an hour minimum wage at the end of 2016—small businesses are struggling to cope with the increases, according to Foundation for Economic Education.
“They’re cutting their staff. They’re cutting their hours. They’re shutting down,” stated Thomas Grech, president of the Queens Chamber of Commerce. “It’s not just the rent.”
With unions and Democrats pushing to increase the federal minimum wage to $15 an hour (more than double what it is today), no one can accurately predict the amount of havoc that will wreak on the economy.
However, in July, the Congressional Budget Office released a study that stated that raising the minimum wage to $15 an hour would raise pay for many, but could cause up to 3.7 million to lose their jobs.
That’s a heavy price to pay.