The $ 15 minimal wage attracts nearer because the Democrats take management of the Senate
President-elect Joe Biden (C), along with Democratic Senate nominees Jon Ossoff (L) and Rev. Raphael Warnock (R), greet supporters during a campaign rally the day before their runoff in the parking lot of Centerparc Stadium in Atlanta .
Chip Somodevilla | Getty Images
A minimum wage of $ 15 drew closer after the Democrats won two seats in the US Senate in Georgia to unite the Democratic Party government, according to forecasts by NBC News.
Such a raise would more than double the current federal minimum wage of $ 7.25 an hour, but would likely meet opposition from some Republicans and corporate groups.
Democrat Rev. Raphael Warnock, who defeated incumbent Republican Sen. Kelly Loeffler in Tuesday’s runoff contest, according to NBC News.
Democrat Jon Ossoff won the other race in Georgia against Republican David Perdue, whose Senate seat expired on Sunday, according to NBC News.
Their victories put the Democrats in control of the Senate, House, and Presidency. Congress should confirm President-elect Joe Biden’s victory over President Donald Trump on Wednesday before protests disrupted proceedings.
“It’s absolutely a priority,” Bankrate senior economic analyst Mark Hamrick said of Democrats passing legislation to set a higher wage floor.
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Democrats, particularly those from the party’s liberal wing, have long pushed for the national minimum wage to be raised. Senator Bernie Sanders of Vermont, an independent who normally votes with Democrats, said in a tweet Tuesday that Georgia’s runoff election would put a minimum wage of $ 15 at stake.
Proponents of raising the lower wage limit argue that the current standard does not offer Americans a liveable wage.
$ 15,080 per year
The federal minimum wage of currently $ 7.25 per hour has not increased since 2009. That wage is equivalent to $ 15,080 for a full-time employee who works year round, according to the National Employment Law Project.
Its value has decreased over time as wages do not increase with the cost of living.
Warnock and Ossoff advocate a minimum wage of $ 15, a point they have emphasized several times over the past few months. Biden promised to raise the minimum wage to $ 15 an hour. The house voted for it in 2019.
Several states, cities, and counties recently increased their minimum wages to $ 15 or more. According to the National Employment Law Project, 40 cities and counties will have met or exceeded a minimum wage of $ 15 by the end of 2021.
“Over the past 40 years in America we’ve seen wages for working people depressed while returns for shareholders have gone through the roof,” Ossoff said on the campaign.
A higher wage would help black and Hispanic workers disproportionately compared to other groups such as whites and Asians, research shows. In December, Warnock described the increase in the minimum wage as a “problem of racial justice”.
An increase in wages would come at a time when low-wage workers and ethnic minorities were disproportionately affected by job losses and poverty during the Covid pandemic.
However, passing such laws is not a matter of course. The Senate will be split 50:50 between Democrats and Republicans, with Vice President-elect Kamala Harris able to cast a groundbreaking vote in favor of the Democrats. This majority would fall below the threshold for preventing a filibuster.
The Republican-controlled Senate failed to put the wage increase bill to a vote after the 2019 bill was passed.
Some business groups, such as the Chamber of Commerce and the National Federation for Independent Business, have opposed this, saying that a national minimum wage of $ 15 would increase labor costs and push employers to lay off workers.
Small businesses that are less likely to have cash reserves or profit margins to absorb higher labor costs would bear the brunt of these negative effects, the NFIB said earlier this year.
Gradually increasing wages to $ 15 by 2025, according to estimates by the Congressional Budget Office, would raise wages for 17 million Americans. About 10 million more people making a little more than $ 15 an hour could also get a raise. However, it is estimated that 1.3 million other workers would lose their jobs.
However, with overwhelming public support, Democrats appear to be on the ball on the issue, Hamrick said.
“The economy has been able to take the brunt of this surge back [in 2009]”Said Hamrick.” Obviously this year was challenging for other reasons [due to the Great Recession], but nobody looks back to 2009 and says, “That was a big political mistake.”