Living Wage
Living Wage
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A Living Wage for a 21st Century Deal
The promise of the American Dream is slipping away for too many families. Stagnant wages, rising costs, and massive financial debt & burdens are undermining the foundations of our society.
A living wage is a promise, that human labor is rewarded with a wage that guarantees a fair shot at Life and the Pursuit of Happiness. It's about ensuring that Americans who work full-time can afford the basic necessities of life. It’s about restoring dignity and stability to families struggling to make ends meet. It’s about recognizing the inherent value of human work and rewarding it fairly and squarely. This is why the Living Wage is a cornerstone of the 21st Century Deal.
1968: $1.60/hour * 40 hours/week = $64.00/week
1968: $1.60/hour-> 2025 CPI Adjust minimum wage: 15.13/hour
1968: $1.60/hour-> 2025 Inflation Adjust minimum wage: 14.82/hour
If we bring productivity into the equation and the cost of housing alone, minimum wage should be way higher for the standard of life we deserve. So let's meet in the middle at $20/hour Living Wage.
The Benefits Extend Far Beyond the Individual
When people have more money in their pockets, they spend it, stimulating local businesses and creating jobs.
A living wage will lift millions out of poverty and narrow the gap between the rich and the poor.
Financial stress is a major contributor to poor health outcomes.
A living wage will reduce stress and improve overall health.
When workers are paid fairly, they are also more motivated and productive.
A living wage will reduce the need for public assistance programs, saving taxpayer dollars.
We can shield wage increases from cost of living increases
A Phased Approach for Sustainable Growth
Our 21st Century Deal proposes a phased approach to raising the wage floor, ensuring a smooth transition for businesses and minimizing potential disruptions. This phased approach will:
The Minimum becomes the Living Wage: Federal minimum wage would raise to 20 dollars an hour over 5 years, and adjust the wage, based around the cycle of the census, from the updated inflation/cost of living increases over that last decade.
Provide Businesses with Time to Adjust: Allowing businesses time to adapt to the new wage floor will minimize potential negative impacts. Roll the Living Wage increases at the start over 5 years, and then adjust the wage every census from inflation/cost of living increases. These long time horizons will prevent any potential inflation in the Living Wage adjustments, will making sure it doesn't take decades for wages to keep up.
Prioritize Small Businesses: Special considerations will be made for small businesses, recognizing their unique challenges. Employers with under 20 employees and under certain revenue levels (would use SBA standards for initial assessment) would be able to get assistance to met the Living Wage increases for their employees so as to maintain the economy of the region and keep businesses open, all while make it easier to start new business. This assistance would be paid for by a small tax on only large corporations, leveling the playing field.
Combine with Workforce Development: Pairing a Living Wage with robust workforce development programs will ensure that workers have the skills they need to succeed. See Transforming Public Education to see how that might work.
Protect the Living Wage from Cost Of Living Increases: This bill or a supplemental bill could be passed to also restrict rent increases gained by raising wages, and instead caps them to half the rate of inflation. So rent would be locked from going up more than half of what inflation was that year. So 2% yearly inflation equates to max 1% rent increase costs.
Investing in Our Future: A Foundation for a Stronger America
A Living Wage's express purpose is about investing in our future, our human future. It will create a more equitable and prosperous society for all Americans. The Living Wage builds the foundation for a stronger, more resilient America: an America where everyone has a fair shot to get ahead!