Every year, the lower and middle-class citizens find themselves scraping even harder to make ends meet. This is because inflation goes up every year, but the federal minimum wage does not. For the last 12 years, the pay rate has remained the same.
Some companies ignored the minimum wage rate and paid their workers a decent rate, but others were all too glad that their overheads remained the same. This has caused many minimum-wage workers to rebel and strike. But where are the negotiations today?
50 years ago, in 1968, the minimum wage rate was at its peak. Workers were able to survive on their wages and comfortably so. However, as time went by, the wage rate increase slowed down. Taking inflation into account, today, wage workers earn much less than they would have 50 years ago, even though their productivity and efficiency have doubled.
The bottom third of the workforce are struggling and when an international pandemic suddenly strikes, this wage divide is even more prominent. Although they have received stimulus cheques over the last couple of months, it is going to dry up; then what? Luckily, workers can easily apply for online personal loans to get them through the hard months when there are unexpected expenses. CashLink USA provides a quick and transparent service that allows individuals to quickly get cash in hand when they need it most.
Earlier this year
At the beginning of the year, the fight to have minimum wages increased to $15 per hour started, but it was largely unsuccessful. As a result, the wage rate still sits at $7,25, which is not enough in any state to survive.
According to the experts, the initial change was dismissed because of the so-called reconciliation process. The process did not account for lawyers to push for the change, and therefore it was not allowed. Consequently, more and more Americans are scavenging for more stimulus cheques while others seek the services of the best online payday lenders.
What congress has to say
Congress was very diplomatic about the wage increase and stated that the issue was on the democrats’ agenda and that it would receive attention at the right time. Shai Akabas, director of economic policy at the Bipartisan Policy Center, mentioned that it did not look like an immediate point of debate and that it was unlikely to come up during the next couple of months. Instead, they were more focused on pushing their next stimulus package to provide immediate relief.
The people are not waiting
When the bill was initially proposed, minimum wage issues were kept relatively quiet. However, when the change was denied, the democratic people took it upon themselves to increase the wage per hour.
Store upon store posted signs in their windows that the minimum wage had increased to $15 per hour. This change came about much faster than the Democrats could have achieved legislatively. Even large commercial companies like Amazon have promised to pay their workers $15 per hour.
State vs. federal outlook
On a state level, the minimum wage rate is being addressed in parts of the country. While 20 states maintain the $7,25 federal rate, others have gradually increased their minimum. Only four states currently set minimum wage rates at %12,50 or higher, with the rest falling between these two borders.
President Biden declared that the federal minimum wage for federal contractors has increased to the proposed $15 rate, but more still needs to be done. If the issue is not addressed soon, there will be an even greater worker shortage as employees will start looking for other jobs that pay better.