The Real Value of the Federal Minimum Wage
The federal minimum wage, currently set at $7.25 per hour, has been steadily declining in real value since it was last raised 15 years ago. As discussions about increasing the federal minimum wage continue, several states have taken the initiative to implement and raise their own state minimum wages.
Mapping Out U.S. States Paying More Than the Federal Minimum Wage
Pallavi Rao of Visual Capitalist has created a map of the U.S. states that pay more than the federal minimum wage, along with their respective minimums. The data for this graphic comes from the Federal Reserve and is accurate as of 2024.
State Minimum Wages: A Ranking
A total of thirty states have a minimum wage that exceeds the federal minimum of $7.25 per hour. Washington and California have the highest state minimum wages, at $16.28 and $16.00 per hour respectively. These states have high costs of living, as indicated by the limited purchasing power of $100 in each state.
However, the highest minimum wage in the country is in Washington D.C., where it is set at $17.50 per hour and is tied to inflation.
Eighteen states have a minimum wage that matches the federal minimum or do not have a state minimum wage, in which case the federal minimum applies. Wyoming and Georgia have state minimum wages that are below $7.25 per hour, but the federal minimum wage applies in these cases.
The Discourse on Minimum Wage
The debate over the minimum wage in the U.S. features two main opposing viewpoints. Those in favor of raising the minimum wage argue that it is necessary to improve living standards for low-wage workers, reduce poverty, and narrow income inequality. They believe that moderate increases have minimal impact on employment and can stimulate consumer spending.
They also point out that this is the longest period without an increase in the federal minimum wage since it was introduced in 1938.
However, opponents argue that significant minimum wage increases could lead to job losses, especially for low-skilled and young workers, potentially increasing poverty rates for some groups. They believe that it could price low-skilled workers out of the job market and harm small businesses with slim profit margins. Both sides use economic studies to support their positions, but the debate ultimately reflects deeper societal values about fairness, opportunity, and the role of government in the economy.
Since 2017, the Raise the Wage Act has been introduced to Congress annually in an attempt to increase the federal minimum wage. However, none of these bills have passed the legislature so far.
Current proposals for the "Raise the Wage" initiative aim to increase the minimum wage to $17 per hour. In the "Share of Workers Earning Less Than $17/Hour", we map out which states would see the most changes.
Bottom Line
The debate around the minimum wage is a complex one, with valid arguments on both sides. It's clear that the issue is deeply intertwined with broader societal values and economic realities. What are your thoughts on this topic? Do you think the federal minimum wage should be increased, or should it be left to individual states to decide? Share this article with your friends and discuss. Remember, you can sign up for the Daily Briefing which is delivered every day at 6pm.
The Real Value of the Federal Minimum Wage
The federal minimum wage, currently set at $7.25 per hour, has been steadily declining in real value since it was last raised 15 years ago. As discussions about increasing the federal minimum wage continue, several states have taken the initiative to implement and raise their own state minimum wages.
Mapping Out U.S. States Paying More Than the Federal Minimum Wage
Pallavi Rao of Visual Capitalist has created a map of the U.S. states that pay more than the federal minimum wage, along with their respective minimums. The data for this graphic comes from the Federal Reserve and is accurate as of 2024.
State Minimum Wages: A Ranking
A total of thirty states have a minimum wage that exceeds the federal minimum of $7.25 per hour. Washington and California have the highest state minimum wages, at $16.28 and $16.00 per hour respectively. These states have high costs of living, as indicated by the limited purchasing power of $100 in each state.
However, the highest minimum wage in the country is in Washington D.C., where it is set at $17.50 per hour and is tied to inflation.
Eighteen states have a minimum wage that matches the federal minimum or do not have a state minimum wage, in which case the federal minimum applies. Wyoming and Georgia have state minimum wages that are below $7.25 per hour, but the federal minimum wage applies in these cases.
The Discourse on Minimum Wage
The debate over the minimum wage in the U.S. features two main opposing viewpoints. Those in favor of raising the minimum wage argue that it is necessary to improve living standards for low-wage workers, reduce poverty, and narrow income inequality. They believe that moderate increases have minimal impact on employment and can stimulate consumer spending.
They also point out that this is the longest period without an increase in the federal minimum wage since it was introduced in 1938.
However, opponents argue that significant minimum wage increases could lead to job losses, especially for low-skilled and young workers, potentially increasing poverty rates for some groups. They believe that it could price low-skilled workers out of the job market and harm small businesses with slim profit margins. Both sides use economic studies to support their positions, but the debate ultimately reflects deeper societal values about fairness, opportunity, and the role of government in the economy.
Since 2017, the Raise the Wage Act has been introduced to Congress annually in an attempt to increase the federal minimum wage. However, none of these bills have passed the legislature so far.
Current proposals for the "Raise the Wage" initiative aim to increase the minimum wage to $17 per hour. In the "Share of Workers Earning Less Than $17/Hour", we map out which states would see the most changes.
Bottom Line
The debate around the minimum wage is a complex one, with valid arguments on both sides. It's clear that the issue is deeply intertwined with broader societal values and economic realities. What are your thoughts on this topic? Do you think the federal minimum wage should be increased, or should it be left to individual states to decide? Share this article with your friends and discuss. Remember, you can sign up for the Daily Briefing which is delivered every day at 6pm.
