Unfortunately, misconceptions abound regarding a higher minimum wage. A common one is that the minimum wage was never intended as a living wage. But in his 1933 address following the passage of the National Industrial Recovery Act, President Franklin D. Roosevelt stated that “no business which depends for existence on paying less than living wages to its workers has any right to continue in this country, … and by living wages, I mean more than a bare subsistence level . I mean the wages of decent living.”
Many minimum-wage workers are not who we picture them to be. According to the Economic Policy Institute, their average age is 35, 88% are 20 or older, 36% are 40 or older, 56% are women, 28% have children, and 55% work full time. On average, minimum-wage workers earn half of their families’ income, and many teen minimum-wage workers contribute their earnings to help keep households afloat.
Raising the minimum wage to $15 over the next four years is the least we can do for Delaware’s most vulnerable workers. It is not a living wage today, and will be even less so in 2025. Per various studies, had the minimum wage kept pace with inflation and worker productivity gains, it would currently be $22-$30. One of the many things to which the COVID-19 pandemic has opened our eyes is how very essential many of our lowest-paid workers are to our society and economy. We owe them more than lip service.
World Population Review says Delaware’s median rent for a one-bedroom apartment is $1,110. Before taxes, at $15 per hour, workers earn $31,200 per year or $2,600 per month. After taxes, with no health care premiums or other nontax deductions, workers earn $1,043 for two weeks, about $2,086 per month. Even for Delaware workers earning $15 per hour today, rent for an average one-bedroom apartment absorbs over 53% of their income.
We have seen in states and cities that have significantly raised their minimum wages that doing so has no discernible negative impact on employment rates, and it presents numerous benefits. It consistently and quickly results in job growth and higher wages for all workers. Also, higher minimum wages reduce food insecurity and poverty — especially amongst people of color, women and seniors.
Higher minimum wages are good for small businesses and local economies. They put money in the pockets of individuals likely to spend that money in their communities and at small businesses. Per the Fiscal Policy Institute, after examining three years of data, in states with increased minimum wages: The number of small-business establishments grew at a rate of 3.1% versus 1.6%; the employment rate grew 1.5% more quickly; and small-business owners were better able to recruit and retain higher-quality employees. Also, a higher minimum wage increases worker productivity and morale, while decreasing employee turnover and absenteeism and even crime.
For these reasons and more, it is long overdue that we implement a $15 minimum wage for Delaware’s workers.
Rep. Eric Morrison is a Glasgow Democrat.
