Half of nan eight battleground states successful this year's U.S. statesmanlike predetermination usage nan national minimum costs of $7.25 an hour, a complaint that hasn't changed since 2009 contempt a 47% surge successful nan costs of surviving since then. In essence, that intends minimum-wage workers successful those states person seen overmuch of their purchasing powerfulness vaporized by ostentation complete nan past 15 years.
Donald Trump's October 20 visit to a McDonald's location in Feasterville, Pennsylvania, wherever nan erstwhile president served nutrient to pre-selected supporters, has renewed nationalist attraction connected really overmuch low-income workers earn. Asked by CBS News newsman Olivia Rinaldi if he thought nan minimum costs should beryllium raised aft spending clip down nan antagonistic astatine nan fast-food restaurant, Trump sidestepped nan question.
"Well, I deliberation this. I deliberation these group activity hard. They're great," he said. "And I conscionable saw thing a process. It's beautiful. It's a beautiful point to see. These are awesome franchises and nutrient a batch of jobs, and it's bully and awesome group moving present too."
Trump's run didn't instantly respond to a petition for remark astir nan erstwhile president's views connected nan minimum wage.
Vice President Kamala Harris has stated that she wants to raise nan nation's minimum wage, arsenic good arsenic nan sub-minimum costs that is earned by tipped workers. Both Trump and Harris person proposed eliminating income taxes connected tips arsenic a measurement to boost net for group successful nan hospitality industry.
While nan national minimum costs has been stiff since 2009, 30 states person stepped successful to boost wages for their lowest-earning workers, according to nan left-leaning Economic Policy Institute. That's near 20 states still paying nan national baseline wage, representing yearly net of $15,000. Those states are mostly successful nan South and Midwest, including nan 4 battleground states that usage nan $7.25 an hr minimum: Georgia, North Carolina, Pennsylvania and Wisconsin.
Experts statement tha workers successful these locations are astatine consequence of falling down group who reside successful states providing a higher salary floor.
"It's ridiculous that Pennsylvania has a little minimum costs than its neighbors arsenic good arsenic states for illustration Arkansas, Florida and Nebraska, wherever voters had a chance to walk raises done ballot initiatives," Holly Sklar, CEO of Business for a Fair Minimum Wage, a group that advocates for higher pay, told CBS MoneyWatch.
Earning $7.25 an hr "is a poorness wage, and it's bad for business arsenic good arsenic workers," Sklar added.
The minimum costs versus inflation
The renewed attraction connected worker salary comes amid polling that shows galore group continuing to struggle financially even arsenic ostentation fades and nan occupation marketplace continues to click.
A mostly of Americans opportunity they consciousness worse disconnected than 4 years ago, according to Gallup, a pessimism that could sway their decisions successful nan November 5 election. And 6 successful 10 voters describe the U.S. system arsenic either "fairly bad" aliases "very bad," according to CBS News polling.
That is apt tied to elevated prices caused by nan hottest ostentation successful 40 years, which outpaced costs maturation during nan pandemic. Yet since May 2023, nan emblematic worker's salary has outpaced inflation, boosting their purchasing power.
That isn't nan lawsuit for workers who gain nan national minimum costs because it isn't indexed to inflation, a measurement that immoderate states are now taking to guarantee that group tin support up pinch nan rising costs of living. If nan national minimum costs had been indexed for inflation, it would now guidelines astatine $10.61 per hour.
The 4 different battleground states person lifted their hourly minimum costs to astir that level, aliases moreover higher:
- Arizona: $14.35 an hour
- Michigan: $10.33 an hour
- Nebraska: $12 an hour
- Nevada: $12 an hour
"In our region, nan minimum costs has gone up successful surrounding states but not successful Pennsylvania," noted Keystone Research Center, a deliberation vessel for Pennsylvania-related issues, successful a blog post. "Minimum-wage workers successful Pennsylvania person besides mislaid crushed comparative to workers successful nan mediate of nan costs distribution, that is, comparative to nan median wage."
- In:
- Minimum Wage
- Pennsylvania
- Georgia
- North Carolina
- McDonald's
- Kamala Harris
- Donald Trump
- Wisconsin
Aimee Picchi
Aimee Picchi is nan subordinate managing editor for CBS MoneyWatch, wherever she covers business and individual finance. She antecedently worked astatine Bloomberg News and has written for nationalist news outlets including USA Today and Consumer Reports.