According to CBS News archive, the last time when federal minimum-wage witnessed an increment was in the year 2009. It appears that the federal minimum wage of $7.25 an hour would remain unchanged for a record period of time without Congress bringing it up for an increment. On 24th July 2009, federal minimum-wage got an increment after the member of Congress approved it unanimously.
The increment in wage had been introduced as a baseline by the government of Franklin Delano Roosevelt. Such measure was taken after the Great Depression. The year 2008 was a year of economic meltdown and the entire world could witness the fragility of the economy. A decade of stagnation will be observed regarding the minimum wage at federal level if Congress doesn’t ponder upon an increment.
Several writers have mentioned that the cost of living in America has gone up in the last ten years. A populistic rhetoric blame the upper class of America to be enjoying all the rich facilities contrary to the middle class. The cost of living has jumped 18% since the year 2009. Such an increment in the cost of living also brings attention towards the minimum wage of the workers. If a healthy working class is required then their rights are necessary to be considered.
CBS News interviewed a McDonalds employee and she said that her only focus was rent and groceries. The worker claimed that she was able to save merely $30 at the end of the month. She said that a similar routine of saving was rampant in nearly all the other months. It shows that those who started to work at $8 an hour around 8 years ago, now can’t afford the luxuries of life without cutting their expenditures. If inflation is also considered then $7.25 of past equal $6 of today. This figure comes from the government affairs director at the National Employment Law Project.
At state level, several initiatives have been taken for the past few years. However, the federal government also need to look into the travails of these workers. Some critics say that a boosted minimum wage would hurt the macro-economy and could result into people losing their jobs.