Double the minimum wage to lift millions of Americans out of poverty is the ambitious proposal of Joe Biden, Which is already on the desk of lawmakers. This could result in a social revolution for the poorest of United States, A country with blatant socioeconomic disparities.
(Read here: Donald Trump hired new lawyers to face trial)
“Even before the pandemic, the federal minimum wage of $ 7.25 (per hour) was economically and morally indefensible.”, Said Democratic lawmaker for Virginia Bobby Scott in introducing the bill.
This has not changed at all since July 24, 2009. Although very popular among the population – even in the ranks of Republicans – and supported for more than a decade by the unions, the initiative has clashed with Republican opposition under lobbying pressure of companies rejecting additional costs.
The US Economy. UU. It suffered the worst fall since World War II. With a contraction of 3.5 per cent in 2020, the outlook is ‘highly uncertain’.
Johannes Eisele. AFP
‘It’s not a radical ideal’
“This is not a radical ideal”, Said Bernie Sanders, a former progressive presidential candidate who rated the $ 7.25 as “Hunger Wages.”
“In the richest country in the world, when you work 40 hours a week, you don’t have to live in poverty”, Has insisted the senator for Vermont who is pushing the bill and hopes to convince skeptics.
The economic crisis caused by the coronavirus pandemic mainly affects small businesses, especially in the gastronomy and services sector.
Therefore, they do not approve of this proposal included in the giant $ 1.9 billion bailout plan. The vice president of the National Federation of Restaurants (NRA), Sean Kennedy, has given a new welcome to the project, especially because he understands the obligation to pay this minimum wage in full, regardless of tips imposed on customers.
(You may be interested in: The challenges facing Biden in his crusade for the environment)
These allow bosses to pay employees only two or three dollars when they are famous “Tips” they fill the $ 7.25 void. This measure “will incur insurmountable costs” for many establishments that will have no choice but to lay off more workers or close permanently, Kennedy predicts.
New Treasury Secretary Janet Yellen responds that “raising the minimum wage will lift tens of millions of Americans out of poverty and create opportunities for countless small businesses across the country.”
It all depends on how it is implemented, he argued, pointing to a gradual increase ($ 15 by 2025) that gives “Enough time to adjust”. Is it good or bad for the economy?
This debate was fiercely settled for centuries among economists and has not been resolved, mainly because the economic reality is not the same in New York (Many opportunities, high cost of living …) or in Mississippi (Less dense economic fabric, much cheaper life …).
(Read here: Donald Trump hired new lawyers to face trial)
The United States announced an agreement for a $ 2 trillion stimulus plan to relaunch the world’s largest economy.
But the Joe Biden administration highlights the virtuous circle: paying those with the lowest wages would generate billions of dollars in additional consumer spending on goods and services provided by small businesses.
In 2019, about 1.6 million workers had wages equal to or less than the federal minimum, that is, 1.9% of all hourly paid workers, according to the U.S. Bureau of Statistics.
This is a small figure for the minimum wage, introduced in 1938 by the then president Franklin Roosevelt during the Great Depression, Has become over time something theoretical. While the southern and central states generally apply the minimum wage, those in the east and the rich like California have set a much higher rate: $ 12, $ 13 or even $ 15.
And big companies like online commerce giant Amazon and coffee chain Starbucks are already paying a $ 15 salary to attract labor.
The salary of Maggie Breshears, a worker for the Fred Meyer group in Seattle, rises to $ 17.59 compared to $ 10 in 2013. “When you can provide someone with a job, you have to pay them a decent salary to live on,” he opines.
A salary of $ 15 per hour by 2025 would increase wages by 27.3 million people and lift 1.3 million families out of poverty, the Congressional Budget Office calculated.
(You may be interested in: The Austin Landmark, the first Afro to take over the Pentagon)
But he also estimates that this could result in the loss of 1.3 million jobs. For Gregory Daco, chief economist at Oxford Economics, beyond the potential impact, the proposal illustrates the social change desired by Joe Biden.
This “confirms an administration’s willingness to focus more on the social and racial inequalities that had caused strong tensions last year” during the administration of Republican magnate Donald Trump, he stresses.
The proposal will be difficult to pass even if Democrats have a majority in both houses. However, Bernie Sanders has already mentioned the possibility of resorting to a device to ratify the law by simple majority.
AFP
Read on too
– They detect in the United States the South African variant of the covid-19
– The US Department of Homeland Security. UU. Post anti-terrorism alert
– US economy. UU. It has suffered the worst fall since World War II