Labor Issues: Minimum Wage Misconceptions

There has been a debate on the 2019 labor event about the increase of laborers’ minimum wage. The information is filled with misinformation and confusion. Let’s try to enumerate what are the truths to that.


You might think that most hourly workers receive a minimum wage, but they don’t. Honestly, less than 50% of these hourly workers only earn the federal minimum wage. And in some unfortunate instances, the percentage of those individuals earning less is increasing from some time now. Another misconception is that not all states provide workers with minimum wage. That is even though the law requires all them to comply with federal minimum wage policy. Sadly, the majority of individual cities pay less. Unlike LA, San Francisco, and Seattle, these cities pay more than the minimum. It is also not true that the minimum wages of laborers are growing over time. Though there is the reported peak of increase, not much of it entirely changed, especially during inflation. Also, economic study shows that the US has one of the lowest minimum wages compared to other developed countries.


It is true in some cases that people that are against minimum wage somehow do not care about the poor. Seemingly, the fight over the minimum wage is between the rich and powerful companies trying to keep the minimum wages down. When you think about it, the demand for employers to pay workers enough is hurting them, not knowing that paying less for unskilled employees makes nothing much of a difference in their businesses’ expenditures. But in some fortunate cases, some responsible companies understand the demand for wage increase because they find employees worthy of the job. Thus, they become more willing to pay even higher.

Yes, raising the minimum wage can help us reduce poverty. However, it is not going to solve the issue on its own.

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