Let’s start with a caveat from Sebastian Martinez Hickey’s Economic Policy Institute write-up about the minimum wage increases coming January 1:
Rising costs of living throughout the country will require policymakers to target minimum wages at higher levels than have been typical in recent years. When striking fast food workers in New York City sparked the Fight for $15 movement in 2012, the buying power of a $15 minimum wage was substantially higher than it is today. In 2025, a $15 minimum wage does not achieve economic security for working people in most of the country. This is particularly true in the highest cost-of-living cities.
Okay, now the good news in key takeaways:
- As 19 states raise their minimum wages tomorrow, more than 8.3 million workers will get raises, lifting their aggregate earnings by $5 billion.
- For the first time, there will be more workers in states with a $15 or greater minimum wage than in states with the pathetic federal minimum of $7.25.
- In addition to these state raises, 47 cities and counties will also boost their minimum wages in the face of a federal minimum that hasn’t been changed since 2009, the longest stretch without a change since the first such minimum was set in FDR’s second term in 1938.
- Minimum wage increases are critical for improving that word our Outlaw Prez thinks is invented by radical left scum — affordability. State and federal policymakers should ensure wage floors meet the needs of all workers.
If you click on the link at the beginning of this post, you can see an interactive version of this chart.
It’s important to remember that, in all but a few instances, Republican lawmakers’ opposition to these raises was ferocious. Not uncommon considering so many of them assert unemployment checks make workers lazy, SNAP food assistance creates dependency, and unions hamper the economy rather than strengthen it. Whether those views reflect their real perspective or are just evidence-free cover for their dogma of greed varies by individual, but collectively their desired outcome is the same — keeping a very large percentage of the American workforce in the category of precariat.
From Hickey, more data about the impacts of the minimum wage raises:
- Women make up the majority (58.1%) of affected workers.
- Black and Hispanic workers will disproportionately benefit. 10.7% of affected workers are Black, despite being 8.7% of the workforce in these states. Meanwhile, 38.3% of affected workers are Hispanic, despite being 19.8% of the overall workforce in these states.
- The vast majority (87.4%) of affected workers are adults, not teenagers.
- A quarter (25.3%) of affected workers are parents. 4.8 million children live in households with at least one worker receiving a pay increase.
- Nearly half (49.4%) are full-time workers and 41.4% have at least some college education.
- More than one in five (21.0%) affected workers have household incomes below the poverty line and 48.8% are within 200% of the poverty line.
The entire piece, thick with useful data, is worth a read.
