Raising the Minimum Wage: Good for Workers, Businesses, and the Economy

The real value of the federal minimum wage has declined 24 percent since 1968. Today, the federal minimum of $7.25 leaves an adult with two children thousands of dollars below the federal poverty threshold. This is unacceptable.

H.R. 2150, the Raise the Wage Act, would increase the federal minimum wage to $12 by 2020, eliminate the tipped minimum wage, and link the minimum wage to increases in the median wage after 2020, so that its value does not erode over time. According to the Economic Policy Institute, this modest increase would give nearly 35 million workers a raise (28 million directly and 7 million indirectly) and lift approximately 4.5 million people out of poverty.

Raising the federal minimum wage will also stimulate consumer spending, help businesses’ bottom lines, and grow the economy. A modest increase would improve worker productivity, and reduce employee turnover and absenteeism. It would also boost the overall economy by generating increased consumer demand.

Businesses Support Raising the Minimum Wage

Businesses Will Benefit from a Modest Increase in the Minimum Wage

Raising the Minimum Wage Boosts the Economy

Raising the Minimum Wage Has Bipartisan Support