I’m probably going to get slammed for this, but here goes.
I have to say no to raising the minimum wage to $15/hour. So many think this will be the end all solution to poverty. It won’t be.
Basic economics here. When I was a teenager, minimum wage was $3.50/hour. A regular hamburger at McDonald’s was around 45 cents. A single at Wendy’s was 99 cents. I bought the groceries for my family. $100 would fill up 2 carts to overflowing, and that included meat. A house cost around 25K in a nice neighborhood. A good basic car was around 6K-10K new. A 2 bedroom apartment was $450/month.
Fast forward to today. Federal minimum wage is $7.25/hour. A single at Wendy’s is now $3.79. A cheeseburger at McDonald’s is $1.19. I just went to the the store and spent $170 with just 2 packages of hamburger, some chicken and my turkey for Thanksgiving for meat. The cart was barely ¾ full. A basic car runs you around 10K-15K new. The house my parents paid 15K for is now assessed at 75K. A 2 bedroom apartment now runs $750/month, if you’re lucky.
You see where I’m going with this? More money in your paycheck isn’t really more money. Minimum wage gets raised then those that have been there longer have to have their wages raise comparably. To offset the raise in wages and maintain profits, the cost of things will go up to cover the raise in wages.
In the short term, it seems like you will have more money but in the long term, based on percentages, you won’t be any better off than you are now. 50% of your income for housing is still going to be 50% whether you’re making $7/hour or $70/hour. Getting a raise in the number isn’t going to change that percentage.