We live in the richest country in the history of the world, but you’d never know it judging by the state of wages in America.
The federal minimum wage was last raised in 2009 to $7.25 an hour, which comes out to $15,080 a year for a full-time worker. In America today, there is not a single county or city where that wage is sufficient to afford even a basic standard of living for one person. Incredibly, it also puts a full-time worker below the poverty line.
To make matters worse, other workers that make above the federal minimum don’t fare much better. As things stand today, nearly half of full-time workers in America fail to earn a living wage, i.e. a wage sufficient enough to afford basic essentials.
The issue is even worse when you contrast workers’ pay with what their employers make. It’s common for CEOs at America’s largest companies to receive pay packages worth hundreds, sometimes thousands, of times more than what their average employees earn. Workers have become more productive over the last few decades, but the fruits of their labor have trickled nowhere but up, right into their bosses’ pockets.
We want wages to be raised to meet the cost of living out of a basic sense of morality. To us, it is a matter of principle that anyone in any job who works 40 hours a week should be paid enough money to afford basic essentials. We don’t believe this is radical or complicated in the slightest.
But there’s another, more selfish reason why we want workers to be paid fairly: it’s good for business. Research has found that workers who are paid well are more focused, motivated, and productive, which in turn leads to less employee turnover and higher profits. Paying higher wages may hurt balance sheets in the short term, but in the end, it is a smart investment that pays for itself.
