Federal Minimum Wage Increase on Hold
February 8, 2021
The push for a US$15 federal minimum wage has stalled after it was voted down in the Senate late last week, National Public Radio reports.
The Senate approved a measure prohibiting an increase of the federal minimum wage during the coronavirus pandemic. The general consensus was that a mandated wage increase would be devasting for small businesses already struggling to stay afloat.
Legislators haven’t abandoned the idea of eventually raising the federal minimum wage, which has been $7.25 since 2009. Sen. Bernie Sanders (I-Vt) said he will advocate for a phased increase to a $15 hourly wage.
Opponents of an increase to the federal minimum wage say it would force employers to cut jobs. A 2019 study from the Congressional Budget Office found that raising the federal minimum wage to $15 an hour by 2025 would boost earnings for at least 17 million people but could lead to 1.3 million job losses.
Proponents of a federal minimum wage increase say it could reduce overall poverty—a benefit that has been overlooked.
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