Latest news with #RaisetheWageAct
Newsweek
09-05-2025
- Business
- Newsweek
Capitalism Isn't Working for the Poor. Let's Try Something Else
The end of the Cold War made clear the triumph of capitalism over other economic systems. But in the decades since, the modern form of American-style capitalism has been showing some cracks. American incomes for the bottom 25 percent haven't grown nearly as fast as they have for the top 25 percent. The bottom 25 percent are not much better off than they were 40 years ago and are even worse off than the bottom 25 percent in some countries with a less robust free market. To placate lower income voters, politicians keep tweaking capitalism to redistribute wealth to those at the bottom. This has come in the form of more progressive taxes, subsidized health care and housing, food stamps, higher minimum wages and child tax credits. All of these are intended to level the playing field, but they also function as a parking brake on free markets, which ultimately diminishes the system's economic potential. It's time to admit that our "one size fits all" capitalist system isn't working for everyone. We should fix it; not with even more tweaks or a European-style welfare state, but with a two-track system that provides a free-market system for those who thrive in it and another system for those who don't. Workers gather to hear Senator Bernie Sanders (I-VT) speak to workers at a press conference to reintroduce the Raise the Wage Act at the U.S. Capitol on April 8. Workers gather to hear Senator Bernie Sanders (I-VT) speak to workers at a press conference to reintroduce the Raise the Wage Act at the U.S. Capitol on April SEIU The current 100 percent free-market system could be replaced by a new 70-30 system, where 70 percent or more of workforce participants remain in the free market and up to 30 percent of the workforce are given a stabilized income. This two-track system is similar to, but distinct from, a Universal Basic Income because it isn't universal—it would be offered as an option for those Americans who prefer security to taking their chances in the free market and would only be available to people who work. This two-part system would stabilize the incomes and improve the well-being of lower income people who opt in to the system, while liberating the free market system in the remainder of the economy to maximize growth and economic potential. The stabilized income would start around $30,000 and increase to over $40,000 by the age of retirement. Those workers receiving it could work for the government or in the private sector, but in either case, they would be paid by the government. If they worked for a private employer, the employer would pay the government the market wage for the employee, and the government would pay the worker their stabilized income amount. The government would absorb or benefit from any difference. At age 20, young Americans would choose whether they want to be in the free-market system or the stabilized income system. Enrollment in either system would be voluntary based on individual preference, subject to the maintenance of the roughly 70 percent to 30 percent workforce breakdown. Before age 30, workers would have the option of switching systems once. After 30, switching would be possible, but expensive. Each year the stabilized income amount would be adjusted for new entrants to keep the number of participants between 25 percent and 30 percent of the workforce. Stabilized income participants must be working or looking for work to receive their payments. Someone could remain in the program and receive the stabilized income for up to a year between jobs, but after that would enter the welfare or disability system. In that respect, this program would act as unemployment insurance, but only for a maximum of one year. Those who are unable to work at all would remain in our current welfare or disability systems. Non-dynamic modeling indicates the stabilized income system would cost the government $800 billion in additional payouts annually. But it would save $265 billion from eliminating social assistance programs for the stabilized income participants who would no longer receive unemployment insurance, nutritional assistance and child tax credits. Some of these subsidies could be reduced or eliminated, too, for the free market participants. For instance, unemployment insurance could be revamped and offered to people in the free-market system up to a certain annual income–perhaps $75,000. People on the free-market track would no longer be able to take advantage of food stamps or child tax credits. But there could be a safety net provision by which people who are failing in the free-market system could revert to the stabilized income system if they meet certain criteria . Dynamic modeling will also likely show further reductions in government costs and increased revenues from relieving the free market system of constant attempts to make it fairer. Even if there are no further benefits, $535 billion a year, or less than 2 percent of GDP, seems a small price to pay for a large improvement in well-being for 25 percent to 30 percent of Americans. Ideally, the fairness dividend brings benefits beyond economics and results in a more stable political system, as voting "pocketbook issues" will no longer be as divisive or high stakes. The time is right for a uniquely American adjustment to our aging "one-size-fits-all" capitalist system. The "welfare states" in Europe are 40 years ahead of the U.S. in trying to force more fairness into free markets—and it's not working. GDP per capita in the large European economies is 25 percent to 40 percent lower than in the U.S. and falling farther behind every year. Adjusting to a two-track economy, preserving a strong majority free-market system with a minority stabilized-income base will continue to foster growth while reducing income inequality and its corrosive cultural and political effects. Thomas C. Foley is a former U.S. ambassador to Ireland under George W. Bush, a former GOP candidate for Connecticut governor, and chairman of NTC Group. The views expressed in this article are the writer's own.
USA Today
22-04-2025
- Business
- USA Today
Where is minimum wage increasing in 2025? These states and cities are due for hikes
Where is minimum wage increasing in 2025? These states and cities are due for hikes While workers across many jurisdictions have already seen minimum wage increases this year, some Americans are still due for a bump in 2025. Jan. 1, 2025 marked a popular day for pay increases across the U.S., as 21 states and 48 cities raised their minimum wage rates. Meanwhile, planned hikes are in place for at least four states and more than a dozen cities through the end of 2025, according to a report by the worker advocacy group National Employment Law Project. At the federal level, Sen. Bernie Sanders, I-Vt., and Rep. Bobby Scott, D-Va. introduced on April 8 the Raise the Wage Act, proposing to raise the federal minimum wage from $7.25 to $17 per hour and gradually end the "subminimum" wage for tipped workers. However, it faces a Republican trifecta across Congress and the White House. Here is what to know about minimum wage increases going into effect across the country in 2025. States with minimum wage changes after Jan. 1, 2025 According to data compiled by the National Employment Law Project, the following states have enacted minimum wage increases after the New Year or are set for increases later this year: Michigan: $12.48 per hour became the new minimum wage as of Feb. 21 $12.48 per hour became the new minimum wage as of Feb. 21 Alaska : $13.00 will be the new minimum wage as of July 1 : $13.00 will be the new minimum wage as of July 1 California : $18.63-$24 will be the new minimum wage for healthcare, depending on the type of facility, as of July 1 : $18.63-$24 will be the new minimum wage for healthcare, depending on the type of facility, as of July 1 Oregon : $15.05 will be the new standard minimum wage as of July 1. The minimum rate is $16.30 for the Portland metro area and $14.05 for nonurban communities. : $15.05 will be the new standard minimum wage as of July 1. The minimum rate is $16.30 for the Portland metro area and $14.05 for nonurban communities. Florida: Minimum wage will increase to $14 and $10.98 for tipped employees on Sept. 30 These cities see minimum wage hikes throughout 2025 Here are some of the cities and jurisdictions seeing minimum wage hikes this year, according to data compiled by the National Employment Law Project: Santa Fe, New Mexico: Minimum wage increased to $15 per hour, effective March 1 Minimum wage increased to $15 per hour, effective March 1 Los Angeles County, California: Minimum wage increases to $17.81, effective July 1 Minimum wage increases to $17.81, effective July 1 San Francisco : Minimum wage increases to $19.18, effective July 1 : Minimum wage increases to $19.18, effective July 1 Washington, D.C.: Minimum wage increases to $17.95, effective July 1 Minimum wage increases to $17.95, effective July 1 St. Paul, Minnesota: Small and micro businesses will see an increase to $15 and $13.25, respectively, effective July 1 Minimum wage debates moving through state legislatures Virginia : Gov. Glenn Youngkin vetoed a bill in March that would have raised the minimum wage to $13.50 per hour by Jan. 1, 2026 and $15 per hour on Jan. 1, 2027. : Gov. Glenn Youngkin vetoed a bill in March that would have raised the minimum wage to $13.50 per hour by Jan. 1, 2026 and $15 per hour on Jan. 1, 2027. Tennessee : A 2025 bill to raise the minimum wage to $20 per hour has stalled, reported the Tennessean, part of the USA TODAY Network. : A 2025 bill to raise the minimum wage to $20 per hour has stalled, reported the Tennessean, part of the USA TODAY Network. North Carolina : The wage floor in North Carolina is set by the federal rate, $7.25. A bill proposing a $22 per hour minimum wage was referred to a committee on March 11, while a separate measure to increase the wage annually until it reached $18 per hour in 2030 was also referred to a committee. : The wage floor in North Carolina is set by the federal rate, $7.25. A bill proposing a $22 per hour minimum wage was referred to a committee on March 11, while a separate measure to increase the wage annually until it reached $18 per hour in 2030 was also referred to a committee. Michigan : Gov. Gretchen Whitmer signed a bill in February that will increase the minimum wage to $15 per hour by 2027. It will also increase wages for tipped workers incrementally. : Gov. Gretchen Whitmer signed a bill in February that will increase the minimum wage to $15 per hour by 2027. It will also increase wages for tipped workers incrementally. Florida: While Florida's minimum wage gets increased every year due to a prior law, bills under consideration in the state legislature, SB 676 and HB 541, would carve out exemptions for apprenticeships, internships or work-study programs to be able to work for less, according to the Daytona Beach News-Journal, part of the USA TODAY Network. Minimum wage increased as inflation persisted; advocates say it's not enough Minimum wage increases throughout the entirety of 2025 will directly impact 3 million workers earning minimum wage, and can also help bump up wages for another 6.2 million workers as companies adjust to the new minimum, USA TODAY previously reported. Wage jumps in recent years have helped some Americans try to keep up with inflation, which hit a 40-year high of 9.1% in mid-2022 before falling to 2.4% in March. However, some of the trade policies pursued by the Trump administration have experts concerned that inflation rates could rise again. Economists: Trump's sweeping tariffs could mean a US recession, much higher inflation Advocates have pointed out that some minimum wages are below what they call the "living wage" threshold for the cost of living in the area. Others argue that raising the minimum wage is associated with higher prices and job loss. Contributing: Paul Davidson, Diana Leyva, C. A. Bridges, USA TODAY Network Kinsey Crowley is a trending news reporter at USA TODAY. Reach her at kcrowley@ Follow her on X and TikTok @kinseycrowley or Bluesky at @
Yahoo
21-04-2025
- Business
- Yahoo
California among states due for minimum wage hikes in 2025; these workers to benefit the most
While workers across many jurisdictions have already seen minimum wage increases this year, some Americans are still due for a bump in 2025, including many workers in California. Jan. 1, 2025 marked a popular day for pay increases across the U.S., as 21 states and 48 cities raised their minimum wage rates. Meanwhile, planned hikes are in place for California and at least three other states and more than a dozen cities through the end of 2025, according to a report by the worker advocacy group National Employment Law Project. At the federal level, Sen. Bernie Sanders, I-Vt., and Rep. Bobby Scott, D-Va. introduced on April 8 the Raise the Wage Act, proposing to raise the federal minimum wage from $7.25 to $17 per hour and gradually end the "subminimum" wage for tipped workers. However, it faces a Republican trifecta across Congress and the White House. Here is what to know about minimum wage increases going into effect in California and across the country in 2025. According to data compiled by the National Employment Law Project, the following states have enacted minimum wage increases after the New Year or are set for increases later this year: Michigan: $12.48 per hour became the new minimum wage as of Feb. 21 Alaska: $13.00 will be the new minimum wage as of July 1 California: $18.63-$24 will be the new minimum wage for healthcare, depending on the type of facility, as of July 1 Oregon: $15.05 will be the new standard minimum wage as of July 1. The minimum rate is $16.30 for the Portland metro area and $14.05 for nonurban communities. Florida: Minimum wage will increase to $14 and $10.98 for tipped employees on Sept. 30 Here are some of the cities and jurisdictions seeing minimum wage hikes this year, according to data compiled by the National Employment Law Project: Santa Fe, New Mexico: Minimum wage increased to $15 per hour, effective March 1 Los Angeles County, California: Minimum wage increases to $17.81, effective July 1 San Francisco: Minimum wage increases to $19.18, effective July 1 Washington, D.C.: Minimum wage increases to $17.95, effective July 1 St. Paul, Minnesota: Small and micro businesses will see an increase to $15 and $13.25, respectively, effective July 1 Virginia: Gov. Glenn Youngkin vetoed a bill in March that would have raised the minimum wage to $13.50 per hour by Jan. 1, 2026 and $15 per hour on Jan. 1, 2027. Tennessee: A 2025 bill to raise the minimum wage to $20 per hour has stalled, reported the Tennessean, part of the USA TODAY Network. North Carolina: The wage floor in North Carolina is set by the federal rate, $7.25. A bill proposing a $22 per hour minimum wage was referred to a committee on March 11, while a separate measure to increase the wage annually until it reached $18 per hour in 2030 was also referred to a committee. Michigan: Gov. Gretchen Whitmer signed a bill in February that will increase the minimum wage to $15 per hour by 2027. It will also increase wages for tipped workers incrementally. Florida: While Florida's minimum wage gets increased every year due to a prior law, bills under consideration in the state legislature, SB 676 and HB 541, would carve out exemptions for apprenticeships, internships or work-study programs to be able to work for less, according to the Daytona Beach News-Journal, part of the USA TODAY Network. Minimum wage increases throughout the entirety of 2025 will directly impact 3 million workers earning minimum wage, and can also help bump up wages for another 6.2 million workers as companies adjust to the new minimum, USA TODAY previously reported. Wage jumps in recent years have helped some Americans try to keep up with inflation, which hit a 40-year high of 9.1% in mid-2022 before falling to 2.4% in March. However, some of the trade policies pursued by the Trump administration have experts concerned that inflation rates could rise again. Economists: Trump's sweeping tariffs could mean a US recession, much higher inflation Advocates have pointed out that some minimum wages are below what they call the "living wage" threshold for the cost of living in the area. Others argue that raising the minimum wage is associated with higher prices and job loss. Contributing: Paul Davidson, Diana Leyva, C. A. Bridges, USA TODAY Network Kinsey Crowley is a trending news reporter at USA TODAY. Reach her at kcrowley@ Follow her on X and TikTok @kinseycrowley or Bluesky at @ This article originally appeared on USA TODAY: Minimum wage increases 2025: Changes coming in California, SF, LA
Yahoo
08-04-2025
- Business
- Yahoo
Democrats unveil legislation raising federal minimum wage to $17 an hour
Rep. Bobby Scott (D-Va.) and Sen. Bernie Sanders (I-Vt.) introduced the Raise the Wage Act of 2025 on Tuesday in both chambers with hopes of increasing the federal minimum wage. The bill would raise the minimum wage to $17 by 2030 according to the Economic Policy Institute. The current federally mandated hourly wage is $7.25 and has not increased since 2009. 'No person working full-time in America should be living in poverty. The Raise the Wage Act will increase the pay and standard of living for nearly 22 million workers across this country,' said Scott, who is the ranking member of the House Committee on Education and the Workforce. 'Raising the minimum wage is good for workers, good for business, and good for the economy. When we put money in the pockets of American workers, they will spend that money in their communities,' he added. The legislation, which has 142 co-sponsors in the House, would index future pay increases while phasing out the subminimum wage for tipped workers and subminimum wage for youth workers, in addition to ending subminimum wage certificates for workers with disabilities. 'In the year 2025, a job should lift you out of poverty, not keep you in it. At a time of massive income and wealth inequality, we can no longer tolerate millions of workers trying to survive on just $10 or $12 an hour,' Sanders, who caucuses with Democrats, said in a release. He described current pay rates as a 'starvation wage.' 'Congress can no longer ignore the needs of the working class of this country. The time to act is now,' the ranking member on the Senate Committee on Health, Education, Labor, and Pensions continued. The lawmakers' proposed legislation would account for a gradual increase in the federal minimum wage over a five-year period. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
08-04-2025
- Business
- The Hill
Democrats unveil legislation raising federal minimum wage to $17 an hour
Rep. Bobby Scott (D-Va.) and Sen. Bernie Sanders (I-Vt.) introduced the Raise the Wage Act of 2025 on Tuesday in both chambers with hopes of increasing the federal minimum wage. The bill would raise the minimum wage to $17 by 2030 according to the Economic Policy Institute. The current federally mandated hourly wage is $7.25 and has not increased since 2009. 'No person working full-time in America should be living in poverty. The Raise the Wage Act will increase the pay and standard of living for nearly 22 million workers across this country,' said Scott, who is the ranking member of the House Committee on Education and Workforce. 'Raising the minimum wage is good for workers, good for business, and good for the economy. When we put money in the pockets of American workers, they will spend that money in their communities,' he added. The legislation, which has 142 co-sponsors in the House, would index future pay increases while phasing out the subminimum wage for tipped workers and subminimum wage for youth workers in addition to ending subminimum wage certificates for workers with disabilities. 'In the year 2025, a job should lift you out of poverty, not keep you in it. At a time of massive income and wealth inequality, we can no longer tolerate millions of workers trying to survive on just $10 or $12 an hour,' Sanders, who caucuses with Democrats, said in a release. He described current pay rates as a 'starvation wage.' 'Congress can no longer ignore the needs of the working class of this country. The time to act is now,' the ranking member on the Senate Committee on Health, Education, Labor, and Pensions continued. The lawmakers' proposed legislation would account for a gradual increase in the federal minimum wage over a five-year period.
