Raising minimum wage could aid working people who need help the most

 The Raise the Wage Act of 2023, introduced on Capitol Hill July 25, would increase the federal minimum wage to $17 an hour by 2028. Also, the bill would gradually raise and then eliminate sub-minimum wages for tipped workers, workers with disabilities, and youth workers, so that all workers covered by the Fair Labor Standards Act (FLSA) would be at the same wage level.

In Illinois’ 17 Congressional Districts, it would boost workers’ average annual wage $1,432.29, according to an analysis by the Economic Policy Institute (EPI).

The federal minimum hourly wage is $7.25 and hasn’t changed in 14 years, the longest period of congressional inaction in the history of the minimum wage. As a result, the actual, Cost-of-Living-adjusted value of the minimum wage has fallen by 30%.

Illinois’ U.S. Sens. Dick Durbin and Tammy Duckworth are along the 30 cosponsors of Sen. Bernie Sanders’ measure, S. 2488.

The national impact of its passage would help workers who need help the most, according to Ben Zipperer from EPI.

“EPI’s analysis shows that a $17 minimum wage in 2028 would raise the wages of 27,858,000 workers across the country, or about 19% of the workforce,” Zipperer said. “The increases would provide an additional $86 billion annually in wages for the country’s lowest-paid workers, with the average affected worker who works year-round receiving an extra $3,100 per year.”

Using Census data and assuming nominal wage growth of 5% yearly between last year and this and an annual rate of 0.5% plus growth in the Consumer Price Index thereafter, EPI’s analysis shows that 27,858,000 Americans out of 146,831,000 employed people (19%) would each see an average annual increase of $3,100.

In west-central Illinois’ four Congressional Districts (the 13^th, 15^th, 16^th and 17^th – represented by two Democrats and two Republicans), the average annual wage increase would be $1,388.75.

Broken down, they are $1,480 in the 13^th (U.S. Rep. Nikki Budzinski), $1,333 in the 15^th (Rep. Mary Miller), $1.342 in the 16^th (Rep. Darin LaHood), and $1,400 in the 17^th (Eric Sorensen),

Of course, 19 states and local governments increased minimum wages already; Illinois this year changed its minimum wage to $13/hour.

“As EPI’s state-by-state minimum wage tracker shows, raising the federal minimum wage is critical to protect workers (especially in the South) who have been left behind,” Zupperer said. “A higher federal minimum wage can build on existing state-level standards and lock in the wage gains made by low-wage workers in the economic recovery from the COVID-19 pandemic.”

 

To look at how its approval would affect other states, go to: https://www.epi.org/publication/rtwa-2023-impact-by-cd/

Its over minimum wage tracker is at: https://www.epi.org/minimum-wage-tracker/