$15 Minimum Wage – Law Street https://legacy.lawstreetmedia.com Law and Policy for Our Generation Wed, 13 Nov 2019 21:46:22 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.8 100397344 Hundreds Arrested at Multiple Minimum Wage Protests https://legacy.lawstreetmedia.com/blogs/politics-blog/hundreds-arrested-nationwide-minimum-wage-protests/ https://legacy.lawstreetmedia.com/blogs/politics-blog/hundreds-arrested-nationwide-minimum-wage-protests/#respond Wed, 30 Nov 2016 21:57:18 +0000 http://lawstreetmedia.com/?p=57284

Many cities have joined the protests.

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Image courtesy of Annette Bernhardt; license: (CC BY-SA 2.0)

On Tuesday many big cities saw thousands of low-wage workers taking to the streets, protesting in favor of a $15 minimum wage. Union activists, politicians, and church members joined the nationwide demonstrations and almost 200 people were arrested across the U.S.

Workers joined the cause in airports, travel hubs, and highways by walking off their jobs or blocking traffic. About 500 employees at O’Hare International Airport in Chicago took part in a strike, alleging unfair labor practices. Hundreds of people chanted slogans outside of the terminals while police officers had to put up gates to make room for travelers to walk past. “We’re not asking for special treatment, we’re asking for decent treatment. We’re asking for decent wages,” said Kisha Rivera, an airplane cabin cleaner at O’Hare.

Thousands of people planned to walk out from their jobs at different McDonald’s restaurants, according to organizers, and one of the chain’s restaurants in St Louis had its drive-through blocked by people for half an hour. A state senator in Massachusetts who sat down with protesters in the middle of a street in Cambridge was arrested. In North Carolina a reverend was arrested, and in Manhattan four local and state officials were arrested as well, after 200 protesters blocked traffic in the Financial District. By Wednesday morning, arrests were up to 26 in New York City, 36 in Cambridge, Massachusetts, 39 in Detroit, and 40 in Los Angeles.

Whether or not to raise the minimum wage is always a hot political topic. Liberal think tank Economic Policy Institute says that raising the minimum wage from the current $7.25 per hour to $12 per hour would affect 35 million workers across the nation and help them get off government assistant programs. But conservative organization Employment Policies Institute argues that the raised costs of a higher minimum wage would result in fewer jobs and the closure of businesses.

President-elect Donald Trump has not been very clear on his stance on the minimum wage. At a Fox Business debate last year he said that wages are too high, but later denied having said that, and claimed he only meant that there’s no need to raise the minimum wage. And then this summer he said at a press conference that the federal “minimum wage has to go up” to at least $10, but only a few months earlier he said it should be up to each state to decide. At this point it’s unclear if he’s made up his mind on minimum wage policy.

The main organizer behind the nationwide protests was the Fight for $15 movement, which is supported by many labor unions. Organizers said that they wanted to draw attention to more areas than just traditional low-wage jobs like fast-food restaurants, by focusing on all kinds of working class Americans. The tactic of protesting at places like airports rather than outside of restaurants, and trying to appeal to people in other fields, seemed to be successful. Workers from childcare facilities, individuals who work in healthcare, and even Uber drivers joined the cause. The question is whether Trump (and other politicians) will listen.

Emma Von Zeipel
Emma Von Zeipel is a staff writer at Law Street Media. She is originally from one of the islands of Stockholm, Sweden. After working for Democratic Voice of Burma in Thailand, she ended up in New York City. She has a BA in journalism from Stockholm University and is passionate about human rights, good books, horses, and European chocolate. Contact Emma at EVonZeipel@LawStreetMedia.com.

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Is a $15 Minimum Wage Really What is Best for the Country? https://legacy.lawstreetmedia.com/blogs/politics-blog/15-minimum-wage-really-best-country/ https://legacy.lawstreetmedia.com/blogs/politics-blog/15-minimum-wage-really-best-country/#respond Fri, 08 Apr 2016 18:08:35 +0000 http://lawstreetmedia.com/?p=51684

Some concerns with the new movement.

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Image Courtesy of [Maryland GovPics via Flickr]

With many states and cities around the country passing legislation to increase the minimum wage to $15, most recently in California and New York, it is easy to be really excited. It has become a hot topic in the election and #Fightfor15 has been gaining traction among many groups around the country.

However, there are some issues that we need to keep in mind as we consider going from $7.25 to $15 an hour. Here are some of the most pressing:

Not all states are created equal

Obviously in many places in the U.S., it is almost necessary for lower skilled workers to earn a livable wage, especially if that is the only money their family is bringing in. However, not all states have the same cost of living, so a federal minimum wage may not be the best idea. According to Reihan Salam of Slate:

This makes poor consumers worse off [in Mississippi] in a direct sense, in that they can purchase less with their earnings. And if consumers are at all sensitive to prices, at least some of them will choose to spend less on labor-intensive goods and services now that they are more expensive. That could reduce the number of minimum wage jobs available.

Not every state needs to pay their workers as much in order to live comfortably, especially for jobs that pay minimum wage. In addition, a salary (or any earned money) in one state isn’t equal to another state when it comes to what you can get with it.

This discrepancy, though, could also pose issues because while raising minimum wage in some places to $15 and not other places could cause businesses to move across state lines to be able to spend less money.

It could cost people their jobs

It is estimated that under a $15 minimum wage, around half a million jobs will be cut by employers. Obviously, this is dependent on the area as well because in certain states or cities companies can afford to pay more or fewer workers.

In economic terms, human labor is considered a good or service, which means that when the price increases, the demand drops. The more we ask companies to pay their lower-level employees, the fewer they will be able to pay with the funds they have allocated to go to payroll, thus, they will either hire fewer people or nix some jobs.

If a firm has $500 an hour to go toward employees and they pay at $7.25/hr, they can pay 68 employees (68.9). If they pay them $10.10/hr, which is what the proposed federal minimum wage is, they can pay 49 employees. This is only a drop of 19 employees. However, if a firm is forced to pay $15/hr, they will only be able to pay 33 employees with $500; a loss of 35 employees. These numbers are obviously different depending on context, but the core economic principle still stands. If something costs more, demand will go down. People could be out of jobs.

Companies may look for cheaper options

There are places in the U.S. that have already begun looking at robots and machines to replace the work of humans because the price of human labor has been increasing too much for some places. This is no surprise, though, this has been happening for years.

According to a recent study by Oxford University, automation may claim as many as 47 percent of current jobs by 2033.

In addition, they are becoming more cost-effective. According to The Boston Consulting Group (BCG), robots in auto manufacturing have been operating at a cost barely over federal $7.25/hr minimum wage. The rise of machine work is expected to speed up as the wages across the nation increase rapidly.

The idea of a proposed $15/hr minimum wage is an amazing thought–but it is just that–a thought. A livable minimum wage is ideal, especially for those who only have one source of income, but the wider consequences could cause issues for the very people that the raise is intended to help, and we need to keep those issues in mind moving forward.

Julia Bryant
Julia Bryant is an Editorial Senior Fellow at Law Street from Howard County, Maryland. She is a junior at the University of Maryland, College Park, pursuing a Bachelor’s degree in Journalism and Economics. You can contact Julia at JBryant@LawStreetMedia.com.

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