The current $7.25 federal minimum wage is a “national disgrace,” according to Vermont Senator Bernie Sanders. And he does make some valid points. The minimum hourly wage hasn’t been adjusted higher since 2009 and, in case you haven’t noticed, after two years of post-COVID inflation, a dollar doesn’t go as far as it used to. Based on CPI inflation, $7.25 in 2009 would be equivalent to about $10.25 in today’s dollars.
You might remember the “fight for $15” rallying cry from a few years ago in response to the low wages prevalent in the fast food sector. Well, in light of recent inflation challenges, Senator Sanders now advocates for a federal minimum wage increase to $17 per hour.
Now, the probability of something like that passing in a divided congress is next to nil. The Democrats would need to retake the House of Representatives and keep the White House and Senate for that to be feasible. So, for now this is purely an academic argument.
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It is also debatable whether a single national standard makes sense given the large disparities in the cost of living in different parts of the country. Already, 29 states have set a minimum wage higher than the federal minimum, as has Washington DC.
But, for the sake of argument, let’s imagine that a $17 minimum wage was a possibility. What would that mean?
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