White House Decision on Minimum Wages Settlement
The new administration has been doing well in proving itself an administration committed to the welfare of people. This is in light of how it is currently making plans to increase of minimum wage. This is something that hasn’t happened since the year 2009.
Biden Administration’s Pandemic Relief Bill
During his campaign, President Joe Biden promised a $15 per hour minimum wage, and he has been attempting to go through the path amongst other national concerns. This includes $1400 stimulus checks and pushing for school reopening and funding with $130 billion.
The President has also taken action to fulfill his promise that full-time workers should not live below the poverty line and has been supported by many Democrats. Some Republicans have also shown support on the increment while some are still reluctant on the issue.
These groups of policymakers emphasize the effect of the proposed increase which could result in loss of jobs, especially in an economy that has seen over 10 million people become jobless because of the pandemic.
The incoming chair of the Senate budget committee – Sanders; stated earlier that what the government needs to do is to ensure more money is disbursed into the economy. This is to ensure people are not starving on wages.
Effects of the Increment
The fight for increment in minimum wages dates back to 2012. This was when fast-food employees stopped working as they called for higher pay.
As reported by a congressional budget office report published a week ago, it was said that the rise in the minimum wage from the current $7.50 to $15 will reduce the rate of poverty by 900,000. It will also increase the wages of nearly 27 million workers. Additionally, it will increase the deficit of the national budget by $54 billion in over 10 years.
Another effect is cutting down on employment by 1.4 million employees.