The federal minimum wage is currently $7.25 an hour. That means that covered workers nationwide must receive $7.25 an hour. The administration of President Joe Biden is seeking to make $15 the national minimum wage. But this idea has run into some pushback in Congress.
Federal law allows states and localities to have a higher minimum wage and some places have done just that, increasing their minimum wage to $9 an hour or even an eventual $15 an hour. But Texas has not mandated a higher minimum wage.
Sometimes, companies drive a certain minimum wage. For example, Amazon's minimum wage is around $15/hour in most of its locations. When Amazon locates a new facility in a city or town, existing employers are forced to pay more so that their workers don't move to Amazon.
But maybe those who want a higher minimum wage should consider Guaranteed (Universal) Basic Income (GBI) instead. Instead of raising the minimum wage, people below a certain income threshold would receive guaranteed monthly payments to spend as they see fit.
Do you think the national minimum wage should be raised? What about the minimum wage in Texas? (Be sure to consider the minimum wage in the year you were born and how far that wage would go.) Certainly, workers would be happy to earn more. But what are the potential pitfalls at the national level? At the state level?
Consider Universal Basic Income (UBI) as an alternative to the minimum wage. How would UBI be funded? What is the minimum household income below which a family should qualify for UBI? Is this a better national and state solution than raising the minimum wage? Why or why not?
Imagine you are a policy analyst working for a think tank. Would you advise national and state legislators to focus raising the minimum wage? Or would you suggest Universal Basic Income instead? Write an introductory paragraph for a report that your staff will produce in which you summarize your argument for raising the minimum wage OR implementing Universal Basic Income (UBI).