Ohio will need a workaholic to replace U.S. Senator Rob Portman

There is a new push at the federal level, led by US Senator Sherrod Brown, D-Cleveland, among others, to raise the minimum wage to $ 15 an hour from $ 7.25, where he has served since 2009.

The approach outlined in the Wage Increase Act is modest: an immediate increase to $ 9.50 an hour if the measure is passed, then gradual increases to $ 15 by 2025. Starting in 2026 , the federal minimum wage would be indexed to the median wage growth. If you want to do it, this is the best way: slowly and predictably, so it’s manageable for business.

The market is already telling us that $ 7.25 an hour is woefully low. (And note: the federal minimum wage is enforced in 21 states that do not have a state minimum wage or set a level at or below $ 7.25; the Ohio rate is $ 8.80 .) Walmart starts workers at $ 11 an hour, while Target and Costco are already at $ 15. At $ 7.25 now, a full-time worker earns just over $ 15,000 per year; an increase to $ 15 still leaves that worker at $ 31,200.

However, there are risks in raising the minimum wage. A pre-pandemic report from the non-partisan Congressional Budget Office found that raising the minimum wage to $ 15 by 2025 would cost 1.3 million workers their jobs. (A hike to $ 12 or $ 10, also studied, would have similar but smaller effects.) At the same time, the report found that the full hike “would increase the wages of 17 million workers who would otherwise earn less than $ 15. time. Another 10 million workers otherwise earning just over $ 15 an hour could also see their wages increase. “A bit of something for everyone.

In a country as large and economically diverse as this, it is better to have a minimum wage set at the state level to account for disparities in production and the cost of living, with the federal government focusing on l improvement of macroeconomic conditions. Better yet, employers take income inequality seriously and look for ways to increase wages. The economy has held up over the past year in large part because of “essential workers”. It is hardly a stretch to say that they should be on the right track to making $ 15 an hour.

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