Biden’s Minimum Wage, What 15$ An Hour Could Have Meant For You

https://www.youtube.com/watch?v=LYEhot28QHY&t=77s

President Joe Biden recently proposed to make the minimum wage $15 an hour which could change many student’s lives.

People like Bernie Sanders have been pushing this since before his running for president, saying, “A $15 minimum wage would be a raise for 32 million workers.”

However, with no Republican support and incomplete Democratic support in the Senate, many economists and politicians have recently debated on the reality of what a $15 minimum wage would do for the country.

Empirical evidence suggests that it would not be a disaster, and that we are more prepared for a wage increase like that of 2007. However, there are still some downsides to a minimum wage over increase to students like us.

First, this gives large companies like Amazon and Google more leverage and ability to automate jobs with machines. This means jobs such as assembly jobs, shipping, guest service, retail and food service would be at risk.

For people fresh out of college trying to pay off student loans or students paying for classes, this not only increases the competition for jobs but can also mean less jobs for students. Some students and teachers may even be let go.

Though many do not believe there would be a huge drop in jobs for people if this were to happen, minimum wage increases have still dropped the total amount of jobs in the United States to above 40 percent.

That is especially true during this COVID pandemic where many people are already struggling. Empirical evidence shows that around 1.4 million jobs are at risk of being lost, and an increase in the homeless population is possible.

Secondly, inflation would be rampant. The price of food would increase, book and class fees would surely double, and rent would have to go up due to the lower value of the dollar.

Depending on the rate of inflation, many economists believe that your $15 dollars would be worthless compared to the current $7.50 rate. A gallon of gas could even be as much as $6, with milk being nearly as expensive.

Students struggling to pay for rent or food may be forced to drop out. Green River would have to put more of their money towards transportation for those unable to drive themselves due to higher gas prices, and the quality and quantity of classes and extra curriculars would drop significantly.

Many people argue that because of the technological advances and infrastructure that the current economy has, we could handle such a large increase without worrying about a crash.

Those on the side of the minimum wage increase show New York and California as examples. With them increasing their minimum wage to $15 an hour in 2016, they have already leaped into the future and thrive as states. Many large companies station themselves there, and those states are still some of the most populated in the country.

However, those same states, and even Washington in recent years, have seen record numbers of workers and students moving away from those states. Many move to other states like Montana, Michigan and Texas. Though they have lower minimum wages, they also have lower taxes and the cost for education and living is significantly lower.

With a majority of senate votes denying Biden’s proposals for a higher minimum wage, it is likely we won’t see another chance at a vote for it again until 2024. Hopefully by then we will be living in a pandemic-free age with a better economy. That would be a time when many economists believe students like us could reap the benefits of higher wages stress free.