Tuesday, March 9, 2021
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Home USA News Biden advances with proposal to double the minimum wage in the USA

Biden advances with proposal to double the minimum wage in the USA

EThis measure could prove to be a social revolution for the poorest in the United States, the French news agency said.

“Even before the pandemic, the federal minimum wage of $ 7.25 [cerca de seis euros] hourly it was economically and morally indefensible, “said Virginia State Democrat Bobby Scott, project of lei.

Although very popular with the population – even in the ranks of supporters Republicans – and supported for more than a decade by unions, the initiative came up against Republican opposition pressured by ‘lobbies’ from companies that refuse additional costs.

“This is not a radical ideal,” argues Bernie Sanders, a former progressive presidential candidate who called the $ 7.25 an hour “starvation wage”.

“In the richest country in the world, when you work 40 hours a week, you shouldn’t live in poverty”, defends the Vermont senator, who is going to present the proposal and hopes to convince skeptics.

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The economic crisis caused by pandemic affects mainly small companies, especially the restaurant sector, which does not welcome this proposal included in the gigantic rescue plan of 1,900 billion euros (about 1,6 billion euros).

The vice president of the National Federation of Restaurants, Sean Kennedy, welcomed the proposal, not least because he understands the obligation to pay this minimum wage in full, regardless of the tips imposed on customers.

This allows employers to pay employees only two or three dollars when these famous “tips” fill the gap with $ 7.25, AFP.

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However, this measure “will have insurmountable costs” for many establishments that will have no choice but to lay off employees or close their doors permanently, Kennedy predicts.

For the new Treasury secretary, Janet Yellen, “raising the minimum wage will lift tens of millions of Americans out of poverty, while creating opportunities for countless small businesses across the country.”

It all depends on how it will be implemented, argued Janet Yellen, noting that a gradual increase – $ 15 by 2025 – would give “enough time to adjust.”

But the government Biden highlights the virtuous circle: paying those with the lowest wages would generate millions of dollars in additional consumer spending on goods and services provided by small businesses

In 2019, 1.6 million workers were paid with a wage equal to or less than the federal minimum, that is, 1.9% of all hourly workers, according to the Statistics Office.

An hourly rate of $ 15 until 2025 would raise the wages of 27.3 million people and lift 1.3 million families out of poverty, estimated the Congressional Budget Office.

But it also estimates that it could result in the loss of 1.3 million jobs.

For Gregory Something, chief economist at Oxford Economics, in addition to the potential impact, the proposal illustrates the social change that Joe Biden I wanted.

“This confirms a management’s desire to focus more on the social and racial inequalities that led to high tensions in the past year,” says Gregory Something.

The proposal will be difficult to pass, even if Democrats dominate both chambersmaras. Bernie Sanders has already mentioned the use of a device to pass the law by a simple majority.

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