An Act of Economic Justice and Equity Is Greatly Needed In America.
The federal minimum wage, stagnant since 2009, requires a long-overdue adjustment to keep pace with inflation, average wages, and the soaring incomes of the top 1 percent and CEOs. The proposal to increase the minimum wage to $17 per hour aims to rectify this imbalance, ensuring that workers are adequately compensated for their contributions to the nation's economic growth. The widening pay gap between CEOs and workers underscores the critical need for this adjustment, emphasizing its urgency and relevance in combating growing inequality.
The federal minimum wage has not kept up with inflation, average wages, and the incomes of the top 1 percent and CEOs. This contributes to America's growing inequality crisis. If the minimum wage had kept pace with productivity increases, it would be around $24 per hour¹.
The widening pay gap between CEOs and workers further highlights the urgency of raising the minimum wage. Just 30 years ago, the average CEO-worker pay gap was 59 to 1; by 2018, it had soared to 361 to 1.
.
Addressing Racial and Gender Inequities:
Historically marginalized groups, particularly women of color, are disproportionately affected by low-wage work. Raising the minimum wage becomes a powerful tool in addressing racial and gender inequities. By implementing this change, we can uplift vulnerable workers, with 39 percent of Black and Latina women, 38 percent of African American workers, 33 percent of Latino workers, and 32 percent of women workers benefiting from the raise. This not only addresses economic imbalances but contributes to a more inclusive and fair labor market.
Historically marginalized groups, including women of color, disproportionately perform low-wage work. Raising the minimum wage would benefit these workers significantly.
According to data from the Economic Policy Institute, while 27 percent of the total US workforce would benefit from the raise, the impact would be even greater for specific groups:
- 39 percent of Black and Latina women
- 38 percent of African American workers
- 33 percent of Latino workers
- 32 percent of women workers¹.
Poverty Reduction:
An increase in the minimum wage directly translates to poverty reduction. Elevating the minimum wage to $17 per hour has the potential to lift millions of families out of poverty. While concerns about potential employment reduction exist, empirical evidence suggests that the overall impact on poverty reduction remains positive. This shift acknowledges the fundamental role of decent wages in providing families with a pathway out of poverty.
Increasing the minimum wage would directly lift millions of families out of poverty. For example, raising it from $290 a week to $600 a week would have a substantial impact¹.
While there are trade-offs (such as potential employment reduction), the overall effect on poverty reduction is positive³.
Food Security Considerations:
Reevaluating the federal poverty threshold is essential to recognizing the increased need for assistance in accessing adequate nutrition. Strengthening the assistance network is crucial in response to evolving challenges. The proposed changes to the poverty line will ensure a more accurate representation of the financial struggles faced by many Americans, fostering a more responsive and effective system for addressing food insecurity.
The proposal to raise the poverty line by $10,000 per household category and increase the federal minimum wage to $17 per hour is a pivotal step toward rectifying economic imbalances and fostering a society where hard work equates to a living wage for all. These changes not only address long-standing issues but also set the stage for a more equitable and just nation, reflecting the values of economic justice and shared prosperity.
Re-evaluating the federal poverty threshold would help us acknowledge that many more people need assistance to access adequate nutrition. Strengthening our assistance network is crucial in response².
Raising the poverty threshold is not only a matter of economic justice but also a step toward a more equitable society where hard work translates into a living wage for all.
Senate Bill Proposal: Federal Minimum Wage and Poverty Guidelines Adjustment Act
Preamble:
This bill, titled the Federal Minimum Wage and Poverty Guidelines Adjustment Act, it aims to address the longstanding economic disparities in the United States by proposing significant adjustments to the federal minimum wage and the poverty line. Recognizing the urgency of these measures, the bill is designed to foster economic justice, reduce inequality, and promote a more equitable society.
Section 1: Federal Minimum Wage Adjustment
1. The federal minimum wage shall be increased to $17 per hour, effective within 90 days of the enactment of this bill.
2. Subsequent adjustments to the federal minimum wage shall be made annually based on inflation rates and the cost of living index.
Section 2: Poverty Line Enhancement
1. The poverty threshold for eligibility in various government assistance programs shall be increased by $10,000 for each household size category.
2. This adjustment shall be applied to the poverty guidelines outlined for the 48 contiguous states, excluding Alaska and Hawaii, as updated annually.
Section 3: Implementation and Enforcement
1. Federal agencies responsible for overseeing labor standards and poverty assistance programs shall take immediate action to implement the adjustments outlined in Sections 1 and 2.
2. The Department of Labor and the Department of Health and Human Services shall collaborate to ensure effective communication and dissemination of information regarding the revised minimum wage and poverty thresholds.
Section 4: Reporting and Evaluation
1. An annual report shall be submitted to Congress by the Department of Labor and the Department of Health and Human Services, detailing the economic impact of the adjustments on workers, households, and government assistance programs.
2. Congress shall conduct a comprehensive review of the effectiveness of the adjustments within three years of the enactment of this bill.
Section 5: Budgetary Allocations
1. Necessary funds shall be allocated to federal agencies to accommodate the implementation of the adjustments outlined in this bill.
2. Appropriations shall be made to support public awareness campaigns to inform businesses and individuals about the changes to the federal minimum wage and poverty thresholds.
Section 6: Sunset Provision
1. The adjustments made to the federal minimum wage and poverty thresholds outlined in this bill shall be subject to review every five years.
2. Congress shall evaluate the continued necessity and appropriateness of these adjustments, considering economic conditions, inflation rates, and overall societal well-being.
Enactment:
This draft bill shall take effect 90 days after its passage into law.
The 2024 Poverty Guidelines for the 48 contiguous states (excluding Alaska and Hawaii) provide income thresholds used to determine eligibility for various government assistance programs. These guidelines are updated annually and are based on household size. Here are the poverty thresholds for different income levels:
- 100% of the Poverty Line:
- Household of 1: $12,910 per year
- Household of 2: $17,380 per year
- Household of 3: $21,950 per year
- ...
- Household of 8: $37,120 per year
- 125% of the Poverty Line:
- Household of 1: $16,138 per year
- Household of 2: $21,725 per year
- Household of 3: $27,438 per year
- ...
- Household of 8: $46,445 per year
- 200% of the Poverty Line:
- Household of 1: $25,820 per year
- Household of 2: $34,340 per year
- Household of 3: $43,056 per year
- ...
- Household of 8: $68,860 per year
- 300% of the Poverty Line:
- Household of 1: $38,730 per year
- Household of 2: $51,640 per year
- Household of 3: $64,550 per year
- ...
- Household of 8: $103,290 per year
Please note that these figures are approximate and rounded. For specific program eligibility, each program may use slightly different guidelines and calculations¹²³⁴.
Newly Proposed Poverty Guidelines for the 48 Contiguous States - Federal Minimum Wage and Poverty Guidelines Adjustment Act
In accordance with the Economic Justice and Equity Act of 2024, the following are the revised poverty thresholds for the 48 contiguous states (excluding Alaska and Hawaii). These income levels are utilized to determine eligibility for various government assistance programs and will be updated annually based on household size. The proposed adjustments involve a $10,000 increase for each line item, reflecting a commitment to addressing economic disparities and providing more accurate support to individuals and families in need.
- 100% of the New Poverty Line:
- Household of 1: $22,910 per year
- Household of 2: $27,380 per year
- Household of 3: $31,950 per year
- ...
- Household of 8: $47,120 per year
- 125% of the New Poverty Line:
- Household of 1: $26,138 per year
- Household of 2: $31,725 per year
- Household of 3: $37,438 per year
- ...
- Household of 8: $56,445 per year
- 200% of the New Poverty Line:
- Household of 1: $35,820 per year
- Household of 2: $44,340 per year
- Household of 3: $53,056 per year
- ...
- Household of 8: $78,860 per year
- 300% of the New Poverty Line:
- Household of 1: $48,730 per year
- Household of 2: $61,640 per year
- Household of 3: $74,550 per year
- ...
- Household of 8: $113,290 per year
These adjustments aim to provide a more realistic representation of financial struggles and ensure that government assistance programs are responsive to the evolving needs of the American population, ultimately contributing to a more equitable and just society.
This proposed draft bill is proposed by Christopher Seymore, candidate for Minnesota US Senate, in an effort to address economic disparities, promote fair wages, and enhance the well-being of American households.
Please follow on Facebook "Chris Seymore For Minnesota US Senate. Vote for Seymore 2024.
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