By John Q. Hosedrinker 
During his Senate confirmation hearing, Scott Bessent, President-elect Trump’s treasury secretary nominee, opposed raising the federal minimum wage, deeming it a state and regional matter. This stance contrasts sharply with calls for a living wage and drew criticism for prioritizing tax cuts for the wealthy over wage increases for low-income workers. Bessent’s economic plan, focusing on deficit reduction and GDP growth, reportedly necessitates cuts to anti-poverty programs and potential tax hikes for the middle class to achieve its goals. Critics argue his nomination prioritizes the ultra-wealthy, potentially harming middle-class families.
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The current federal minimum wage of $7.25 an hour is woefully inadequate, a fact underscored by the stark contrast between its stagnation and the soaring costs of living. A recent statement by a Trump administration Treasury pick, flatly dismissing the need for a raise, only further highlights this critical issue. This refusal to acknowledge the real-world struggles faced by minimum wage earners speaks volumes about a disconnect between those in power and the realities experienced by everyday Americans.
The purchasing power of the minimum wage has significantly eroded over the past two decades. While the minimum wage has increased by only $2.50, housing costs, for example, have skyrocketed, leaving many struggling to afford even basic necessities. This disparity is not just a matter of opinion; it’s a quantifiable reality that necessitates a substantial minimum wage increase, at the very least to keep pace with inflation. Simply put, the current rate is far below the adjusted minimum wage that would reflect the purchasing power of the dollar in previous years.
A simple inflation adjustment reveals the inadequacy of the current $7.25 figure. Even a modest adjustment to reflect the increase in prices since 2009 would bring the minimum wage to a significantly higher level. This is the absolute minimum that needs to be done, and even this would only partially address the issue. The true measure of a just minimum wage should be determined by the actual cost of living, ensuring it provides a livable income.
The widening wealth gap adds another layer of urgency to this discussion. While executive salaries have exploded, exceeding a thousand percent increase since the Reagan era, average worker compensation has lagged far behind, increasing by a mere 18%. This dramatic divergence highlights a fundamental flaw in the economic system, where the supposed benefits of economic growth fail to trickle down to the working class.
The Reagan era serves as a cautionary tale. While proponents point to short-term economic improvements, the long-term consequences for the working and middle classes have been devastating. The massive tax cuts for corporations and the wealthy, accompanied by cuts to social programs, resulted in a profound redistribution of wealth upwards. This shift has left a legacy of growing inequality that continues to impact American society today.
The decline in union membership since the Reagan administration provides further evidence of this imbalance of power. The firing of the air traffic controllers, a blatant act of union busting, set a precedent that significantly weakened the labor movement. Subsequent administrations have largely followed this anti-labor trajectory, resulting in the current weak position of unions and employees.
Trump’s administration and his policies exemplified this anti-labor trend. With the appointment of corporate loyalists to key positions and the rollback of labor protections, Trump’s policies explicitly favored employers over employees. His comments expressing disdain for overtime pay underscore this bias.
The experiences of minimum wage workers themselves paint a vivid picture of the struggle for survival. Many work multiple jobs, struggle to afford housing, lack access to healthcare, and face constant financial insecurity. Their stories expose the severe limitations of the current minimum wage, illustrating the reality that the $7.25 wage does not allow people to live a decent life.
The fact that a recent appointee would dismiss the urgent need for a minimum wage increase is deeply concerning. It reflects a fundamental lack of understanding about the struggles faced by millions of Americans, those who keep the country’s economy functioning. It’s a refusal to acknowledge the stark realities of poverty and economic inequality in the United States.
Raising the federal minimum wage is not merely a matter of fairness; it’s an economic imperative. It would stimulate economic growth, reduce poverty, and provide a much-needed boost to the spending power of a significant portion of the population. The time for meaningful change is long overdue. Ignoring this reality is not only morally reprehensible but also economically detrimental to the long-term health of the nation. The current system is unsustainable, and a significant increase in the federal minimum wage is a crucial step towards building a fairer and more prosperous society.