Raise the minimum wage.
Happy Tuesday, and welcome back to the Anti-Racism Daily. I'm writing from Austin, TX, with no power or heat. If you're in the parts of the U.S. affected by the snowstorm, I hope you're safe and warm!
Today, fast-food workers across the country will walk out in protest, hoping to push through a minimum-wage raise to benefit tens of millions. The #Fightfor15 is critical; a recent study indicated that 7M Americans would be affected by the increase, and that 900,000 would be lifted out of poverty at a time when low-wage workers – and especially people of color – have suffered most during the pandemic. Let's help rally for Congress to pass an increased minimum wage, and for corporations to make the same decision.
Thank you all for your contributions! This newsletter is made possible by our subscribers. Consider giving $7/month on Patreon. Or you can give one-time on our website or PayPal. You can also support us by joining our curated digital community.
Nicole
TAKE ACTION
Sign the petition to urge Congress to increase the minimum wage to $15.
Sign the petition urging Mcdonald’s to increase the minimum wage.
Advocate for fair wages at your place of employment.
GET EDUCATED
By Nia Norris (she/her)
The minimum wage has stayed the same, while the cost of living has increased significantly. Advocates for a minimum wage of $15 an hour have been lobbying lawmakers for several years now. The federal minimum wage has not increased since 2009 when it was raised to $7.25. Since 2009, the cost of living in the United States has increased by 20%, and the cost of essentials like housing and healthcare have grown at higher rates (CNN). Currently, the median living wage in the United States is $67,690 (Insider). For reference, if the minimum wage were to be increased to $15 an hour, the annual wage would add up to $30,000. Employers are also permitted to pay subminimum wages to employees who have disabilities (DOL).
On January 26th, Democrats in the House of Representatives introduced a bill to raise the minimum wage to $15 an hour nationwide by 2025. They attempted to pass the same legislation in 2019, but the Republican-controlled Senate blocked it. (CNBC). Advocates of this bill cited a report from the Economic Policy Institute and the University of California Berkeley, which found that an increased minimum wage would not only lower government spending on public assistance but would also increase tax revenue (Politico). Currently, raising the minimum wage to $15 an hour has been bundled into the new coronavirus relief package (NY Times).
Workers with disabilities have it harder, often working for programs called “sheltered workshops” that pay workers who have disabilities a subminimum wage, many earning only $3.34 an hour (NPR). The U.S. Commission on Civil Rights released a report recommending that the subminimum wage be abolished entirely (USCCR). There have also been multiple federal bills attempting to abolish the subminimum wage for workers who have disabilities, but all have failed to pass. At a state level, Vermont, Alaska, Maine, Maryland, Nevada, New Hampshire, and Oregon have abolished the subminimum wage (NPR).
People of color disproportionately earn poverty wages as compared to white people. Black workers are 1.5 times as likely to make poverty wages as white workers, and Hispanic workers are 2.2 times as likely (EPI). Increasing the minimum wage to $15 an hour would increase the wages of 38.1%of Black people as compared to 23.2%of white people. Black and Hispanic workers are also significantly more likely to experience minimum wage violations (Equitable Growth). Black Americans are also overrepresented in the tipped employee workforce, where the federal minimum wage has remained stagnant at $2.13 an hour for over 25 years (Georgetown Poverty). A study has shown that consumers discriminate against people of color while eating out, tipping them at a lower rate (Wiley Online Library).
Raising the minimum wage is also key to increasing housing affordability. The National Low Income Housing Coalition published a report in 2020 called Out of Reach, documenting the gap between wages and housing. On average, a full-time worker needs to earn an hourly rate of $23.96 to afford the cost of a modest two-bedroom rental. In 11 states, this rate is more than $25 an hour (NIHC).
As a result, there are racial disparities in renting and ownership. In the U.S., 73.3% of White, non-Hispanic people own homes, but only 42.1% of Black people do (USA Facts). Black people who do own their homes also pay more for their mortgages. Black borrowers have an average mortgage rate of 4.62%compared to a mortgage rate of 4.3%for white borrowers (BankRate).
Since Black people have the highest rate of disability, the subminimum wage also has a disproportionate impact (National Disability Institute). Large employers, such as Goodwill Industries, use the subminimum wage to pay workers with disabilities significantly less. The Raise the Wage Act in Congress would also raise the minimum wage for workers who have disabilities (Vox).
Raising the minimum wage would reduce poverty among Americans, particularly people of color and workers who have disabilities. It would increase accessibility to housing and other necessities. It would also prohibit employers from paying substandard wages to people with disabilities and combat racism toward Black employees that rely on tips. The fight for equity must begin with combating economic racism in the United States.
KEY TAKEAWAYS
The minimum wage has not increased with the cost of living. The federal minimum wage has remained stagnant at $7.25 an hour since 2009, while the cost of living has risen by 20%.
Black workers are overrepresented in the tipped employee workforce, which has a federal minimum wage of only $2.13 an hour. Tipped employees are more likely to live in poverty, and there have been studies indicating racial discrimination in tipping practices by consumers.
Black people are less likely to be homeowners, and Black borrowers who do own homes pay more for their mortgages than white borrowers.
Employers of disabled workers, such as sheltered workshops, are not required to pay a minimum wage at all, and Black people experience disability at a higher rate than white people.
PLEDGE YOUR SUPPORT
Thank you for all your financial contributions! If you haven't already, consider making a monthly donation to this work. These funds will help me operationalize this work for greatest impact.
Subscribe on Patreon | Give one-time on PayPal | Venmo @nicoleacardoza