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Poverty has been a constant issue in America since the late 19th century. The country was still recovering from the effects of the Civil War. Most Americans lived in rural areas and were farmers, struggling to make ends meet. Poverty was especially severe in the South, where Reconstruction policies failed to improve the economic prospects of Black Americans.

During the early 20th centuries, America underwent significant economic and social changes. The country experienced rapid industrialization and urbanization, which created new opportunities for wealth and prosperity. However, these changes also created significant social and economic inequalities. The growing divide between rich and poor led to the emergence of a new social class of urban poor, many of whom lived in slums and worked in factories under harsh conditions.

The Great Depression of the 1930s had a profound impact on poverty in America. Millions of people lost their jobs, and poverty rates increased. It is often associated with wasted lives, wasted land, and human waste. The government responded with the New Deal, a series of policies aimed at providing economic relief. The New Deal programs provided millions of Americans with employment and support, and played a key role in reducing poverty during this period.

The post-World War II era saw significant economic growth, but poverty persisted. In the 1960s, the government launched the War on Poverty, a series of programs aimed at addressing poverty and inequality. These programs included the establishment of Medicaid and Medicare, as well as expanded access to education and job training. Despite these efforts, poverty rates remained high in certain communities, especially among Black Americans.

In the book, “The New Deal and the Constitution,” a writer named John Corbin asked the question: “Can a nation call itself free if it finds itself periodically on the verge of bankruptcy and starvation in the face of the fact that it possesses all the materials of the good life?” To improve the quality of life for impoverished citizens (thus "freeing them), The Supportive Initiative for Gaining Monetary Affluence (SIGMA) Act would increase the minimum wage with the rate of inflation. This would lead to reduced poverty, better health, higher job satisfaction, and a stimulated economy.

Isenberg, Nancy. "White Trash: The 400-year Untold History of Class in America." Viking, 2016. http://tankona.free.fr/isenberg2016.pdf

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Significant Event 1: Triangle Shirtwaist Factory Fire/Strike (1911) (Mitch)

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Significant Event 1: Triangle Shirtwaist Factory Fire/Strike (1911) (Mitch)

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On November 24, 1911, 20,000 garment workers took to the streets to protest their abusive textile companies, such as Leisters and Company, The Triangle Shirtwaist Factory, and more. They marched for higher wages, safer working conditions, and a shorter work week. These companies exhibited complete control over their employees, making them work 12-14 hours a day, pushing them to the point of injury, and dismissing them if they demonstrated any form of laxity while on the job. Despite these insufferable working conditions, their wages were not enough to support themselves, much less afford all of the new urban entertainment, such as movies and vaudeville shows, they so craved.

Among the companies that were the subject of the strike, the Triangle Shirtwaist Factory made the fewest concessions to the requests of the strikers. Their arrogance would eventually backfire on them. On March 25, 1911, a fire broke out on the eighth floor of the factory. Company protocol required the women to be locked into the room during their shift. 146 workers burned to death, making the Triangle Shirtwaist Factory Fire one of the worst industrial accidents in history.

This tragedy could have been prevented by government intervention or laws protecting workers. It also represents how little companies value their employees. Through the SIGMA Act, companies will have to improve the work atmosphere and raise the minimum wage, meaning employees will be able to have a higher quality of life.

"Triangle Shirtwaist Strike." Spotlights. Infobase, 2020. Accessed February 15, 2023. ich.infobase.com/Auth/Index?aid=&itemid=WE58&articleId=591463.

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Significant Event 2: The Assembly Line and WWI (1912-1918) (Andrew)

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Significant Event 2: The Assembly Line and WWI (1912-1918) (Andrew)

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The creation of the assembly line system and overall industrialization changed the way manufacturing was done in America. Industrialization created a demand for cheap labor, and impoverished people were often the ones who were exploited. They worked long hours in dangerous and unhealthy conditions, for very low pay. Women and children were especially vulnerable to exploitation, as they were often paid even less than men. This was furthered in WWI when the need for weapons and other goods drove manufacturing up, which caused a higher demand for workers. However, the crippling effects of the war, "exacted a cruel economic and human toll from the core societies of the advanced industrialized world, including conspicuously Britain, France, and Germany” wrote historian David M. Kennedy. This would lead to, after a period of economic success in the '20s to the Great Depression, where the repercussions of the war caught up with isolationist America. Furthermore, many impoverished men who were the breadwinners of their families were drafted to fight, causing their families to not have a provider. Later, when many soldiers would die, their families would not have the same support they previously had, bringing the extreme poverty rate to a high of 64% in 1921 according to OECD. The SIGMA Act that we propose would cause some of these issues to be lessened because workers would be better provided for.

Klein, Christopher. “Did World War I Cause the Great Depression? - History.” History.com. A&E Television, April 21, 2021. https://www.history.com/news/world-war-i-cause-great-depression.

University, Michail MoatsosUtrecht, and Michail Moatsos. “Home.” OECD iLibrary. OECD, March 25, 2021. https://www.oecd-ilibrary.org/sites/e20f2f1a-en/index.html?itemId=%2Fcontent%2Fcomponent%2Fe20f2f1a-en.

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Significant Event 3: Great Depression (1929-1939) (Andrew)

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Significant Event 3: Great Depression (1929-1939) (Andrew)

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The Great Depression was a period of horrible economic downturn that affected almost every American. A crashing stock market caused people to lose their life savings in an instant, and millions were thrust into poverty. This event was significant because it showed the world that the lower class of America suffered under the structure of the economy and its implications. Teddy Roosevelt aimed to stop the recession by providing impoverished Americans with jobs through organizations like the Works Progress Administration (WPA) and the Civilian Conservation Corps. This would alleviate some of the unemployment that Americans suffered from. Furthermore, his plan gave the National Recovery Administration the power to shape industrial codes governing trade practices, wages, hours, child labor, and collective bargaining which would help impoverished Americans gain more worker's rights, according to Britannica. Combined with tax reforms, which would raise the corporate tax rate by 1.75 percent, and estate taxes, which would be raised from 20 to 45 percent, the government was able to dampen the dreadful conditions for Americans. However, the damage was done, and millions suffered worldwide because of selfish actions made by banks and the upper class. During the Depression, an act like the SIGMA Act would prevent many from going into poverty, as they would have higher wages using the inflation that was already happening during the time.

Wallenfeldt, Jeff. “FDR's ‘Fireside Chats," the Role of Eleanor Roosevelt, and Crucial New Dealers.” Encyclopædia Britannica. Encyclopædia Britannica, inc. Accessed February 23, 2023. https://www.britannica.com/event/New-Deal/FDRs-Fireside-Chats-the-role-of-Eleanor-Roosevelt-and-crucial-New-Dealers.

Edwards, Chris. “Tax Increases and the Great Depression.” Cato.org. Cato Institute, November 16, 2022. https://www.cato.org/blog/tax-increases-great-depression#:~:text=Revenue%20Act%20of%201932.&text=The%20act%20broadened%20the%20income,tires%2C%20radios%2C%20and%20electricity.

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This recipe for Vinegar Pie from a newspaper during the Great Depression

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Artifact 1: Recipe for Vinegar Pie (1905) (Andrew)

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Artifact 1: Recipe for Vinegar Pie (1905) (Andrew)

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Vinegar pie was a staple dessert of the Great Depression because of its cheap ingredients and apple pie-like taste. Since apples were expensive and many could not afford them, vinegar was used as a replacement for the sour taste. The recipe as a whole shows the resilience of Americans during the Depression and their drive to keep American life the same regardless of the situation that the nation was in.

The Herald Democrat. May 16, 1905.

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The cover from the hit movie "I Am a Fugitive from a Chain Gang."

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Artifact 2: I Am A Fugitive From A Chain Gang (1932) (Mitch)

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Artifact 2: I Am A Fugitive From A Chain Gang (1932) (Mitch)

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In 1932, Warner Brothers released "I Am a Fugitive from a Chain Gang," a grim exhibition of how the southern economy was extremely unaligned with the American dream. It features James Allen, a hardworking WW1 veteran who eventually becomes jobless and a prisoner. He is the embodiment of the Depression's "Forgotten Man," an ambitious and creative mind that was exiled from the labor force.

Isenberg, Nancy. "White Trash: The 400-year Untold History of Class in America." Viking, 2016. http://tankona.free.fr/isenberg2016.pdf

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Roosevelt Signing the Social Security Act

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Significant Event 4: Social Security Act (1935) (Hari)

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Significant Event 4: Social Security Act (1935) (Hari)

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On August 14, 1935, President Franklin D. Roosevelt signed into law the Social Security Act, a landmark economic policy change that served to help millions of impoverished Americans. Before the Great Depression, the US had frail policies and measures to ensure economic security for its citizens. Originally, there were poorhouses, which were often overcrowded and in deteriorating condition, and the poor were helped solely by the generosity of wealthier people. Then, in 1862, the government provided pensions for Civil War Veterans. Prior to Social Security, the main forms of economic security were pensions, or welfare programs based on eligibility. Although most states had them, they were overwhelmingly ineffective because strict eligibility criteria excluded qualification for most elderly people, and the most generous plan paid a maximum of $1 per day.
In addition to these programs already being inadequate, according to the Social Security Administration, there were 4 main causes for social security: the Industrial Revolution, America’s urbanization, the vanishing extended family and a longer life expectancy. Since more people were transitioning away from being farmers and taking on roles in the Industrial labor force, they were no longer as self-sufficient and no longer lived with and took care of elderly extended family. Furthermore, as sanitary conditions in America improved, so did citizens' life expectancy, which left more elderly without jobs or means to support themselves economically.

The Social Security Act changed these problems; it provided for unemployment insurance, health insurance for people in financial distress, and financial assistance for widows with children and disabled people, and most importantly, effective old-age assistance programs designed to pay retired workers age 65 or older a continuing income after retirement. This act was unique because before Roosevelt, most social assistance plans in America were dependent on the government and charities handing out money to people. The Social Security Act, however, was more sustainable because people contributed to their own future economic security by contributing a portion of their work income through payroll tax deductions. The current working generation would pay into the program and finance the retired generation’s monthly allowance, revolutionizing how the nation cared for its less fortunate.

This program had a drastic impact on millions of Americans, especially elderly and retired people, and helped to lift them above the poverty line. Wilbur J. Cohen, who served as Secretary of Health, Education, and Welfare, wrote: "If any piece of social legislation can be called historic or revolutionary, in breaking with the past and in terms of long run impact, it is the Social Security Act." Furthermore, this act served as the groundwork for new policies, and the act was amended multiple times in the following decades to add new benefits. Although the initial act had some flaws, such as excluding certain African Americans, they were corrected in later amendments. Because this program affected such a large number of people, and proved to be effective, even in the present day, 66 million Americans receive social security benefits every month.

This event informs our proposal because it showed what a sustainable policy looks like. Before this, programs for economic security were unsustainable because they relied on governments and charities to donate to the poor, which was not consistent. Social Security allowed for people to effectively pay for their own retirement through taxes, which would ensure that people would have retirement funds for future generations, just like how our proposal ties minimum wage to increases in inflation, ensuring its effectiveness into the future.

"Franklin D. Roosevelt Creates Social Security: August 14, 1935." In North America, edited by Jennifer Stock. Vol. 6 of Global Events: Milestone Events Throughout History. Farmington Hills, MI: Gale, 2014. Gale In Context: U.S. History (accessed February 15, 2023). https://link.gale.com/apps/doc/MZWGFT423844500/UHIC?u=pitt94721&sid=bookmark-UHIC&xid=2dea225f.

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Photograph of an impoverished mother in a labor camp. Titled: "Migrant Mother."

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Artifact 3: Migrant Mother (1936) (Mitch)

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Artifact 3: Migrant Mother (1936) (Mitch)

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The "Migrant Mother," taken by photographer Dorothea Lange during the Great Depression, depicts a worn and weathered mother of seven children, Florence Owens Thompson, sitting with her children in a makeshift shelter in a California migrant labor camp. The image became an iconic representation of the hardship and suffering endured by millions of Americans during the Great Depression, and it helped bring attention to the issue of poverty in America.

Britannica School, s.v. "Dorothea Lange," accessed February 22, 2023, https://school.eb.com/levels/high/article/Dorothea-Lange/47089.

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A panel of a B24 Liberator Bomber plane, the most produced plane of WW2 in the US

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Artifact 4: B24 Liberator Side Panel (1945) (Andrew)

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Artifact 4: B24 Liberator Side Panel (1945) (Andrew)

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The hard work of the thousands of impoverished Americans producing war machines for the cause showed how the Americans that struggled to provide for themselves helped the greater nation and the greater good of the world. This is reflected in our proposal because we aim to repay their hard work every day.

“Antique WWII B24 Liberator Bomber Airplane Aviation Fuselage Shadowbox.” For Sale at 1stDibs. 1stDibs, 2023. https://www.1stdibs.com/furniture/wall-decorations/shadow-boxes/antique-wwii-b24-liberator-bomber-airplane-aviation-fuselage-shadowbox/id-f_24368362/?utm_content=condensed&allowUniversalLink=no&gclsrc=aw.ds&gclid=CjwKCAiAl9efBhAkEiwA4Torin3jtbcIbEjTXmx3E3FGmefo4BwPfDD6kgqNK4B1b_qoaz2TXsY2ZRoCfeUQAvD_BwE.

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Significant Event 5: The Civil Rights Movement (Andrew) (1960-1968)

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Significant Event 5: The Civil Rights Movement (Andrew) (1960-1968)

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The Civil Rights Movement was a combination of significant events that shaped American culture and politics today. Through widespread change, rights were established for many minorities. Specifically for impoverished Americans, the Civil Rights Movement aimed to advance the benefits and support that were previously denied to those in poverty. For example, JFK created a federal pilot program that would aid with feeding the hungry, creating jobs, and training impoverished Americans with skills. This would lay the framework for impoverished Americans during the Civil Rights movement as a supportive time that seeked to relieve many of their economic strifes. Furthermore, the Kennedy Administration and the Johnson Administration understood that people who were in poverty were almost always those that had been denied civil rights, and by giving minority groups like blacks more civil rights, they could also tackle poverty since the two issues were so intertwined.  Overall, the Civil Rights Movement was successful in starting support for impoverished people and would reduce the poverty rate for black Americans by 23% according to the Economic Policy Institute. This period would also encapsulate Johnson's war on poverty. This ties into our proposal because it would be an extension of some of the changes made by administrations during the Civil Rights Movement that aimed to support impoverished Americans.

Former Global Citizen Staff Writer. “The Civil Rights Movement and Its Connection to Poverty.” Global Citizen. Global Poverty Project, January 18, 2015. https://www.globalcitizen.org/en/content/the-civil-rights-movement-and-its-connection-to-po/#:~:text=The%20Civil%20Rights%20Movement%20stirred,employment%20creation%2C%20and%20skills%20training.

Austin, Algernon. “The Unfinished March: An Overview.” Economic Policy Institute. Economic Policy Institute, June 18, 2013. https://www.epi.org/publication/unfinished-march-overview/.

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Graph Depicting the National Poverty Rate from 1947-2013 and the Total Welfare Spending.

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Significant Event 6: Johnson's War on Poverty (1964) (Hari)

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Significant Event 6: Johnson's War on Poverty (1964) (Hari)

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In his State of the Union Address on January 8, 1964, President Lyndon B. Johnson announced: "This administration today, here and now, declares unconditional war on poverty in America. … It will not be a short or easy struggle, no single weapon or strategy will suffice, but we shall not rest until that war is won. The richest nation on earth can afford to win it. We cannot afford to lose it." This war on poverty was part of a larger agenda of Johnson's "Great Society" which pushed for the elimination of poverty through numerous effective acts and policies.

First, in August 1964, Congress enacted the Economic Opportunity Act (EOA), creating the Office of Economic Opportunity, the Community Action Program (CAP) and the Job Corps. The CAP was designed to administer services to the poor, coordinate efforts of federal, state, and local governments, and give the poor a say in policy. The Job Corps provided vocational training for the disadvantaged, as well as a national work-study program funding college education of more than 100,000 Americans at the time. Many other initiatives were introduced, government training for volunteers serving the underprivileged, and funding for farmers and agricultural cooperatives.

The continued commitment over the next decade to this War on Poverty led to the creation of numerous other programs, some of which are still crucial today. For example, Supplemental Nutrition Assistance Program, or SNAP, gave low-income families better access to nutritious food. Medicare and Medicaid were revolutionary healthcare insurance programs for low-income and elderly people, and even today, Medicare serves 39 million people, or 14 percent of the population. The Head Start program provided education, health and social services to families with children aged 3, 4 and 5. The Elementary and Secondary Education Act (ESEA) was created to reallocate funding to school districts with a high percentage of students from low-income families, and give these students a more equal education. Social Security was also expanded under Johnson to be more inclusive and more beneficial.

These and other programs with roots in the War on Poverty have kept millions of families out of poverty, made college education more accessible, and, according to the Center for American Progress, "put the American Dream within reach for those living on society’s margins." In the late 1950s, the first poverty statistics were released, and the poverty rate was approximately 22%, with almost 40 million Americans living in poverty, one of the key reasons Johnson declared the War on Poverty. However, during the War on Poverty, the national poverty rate fell 42 percent from 1964 to 1973, reaching an all-time low of 11.1% in 1973.

Some historians, however, point out flaws with the War on Poverty and claim that its harms outweigh its benefits to society. For instance, some of these policies served to increase impoverished people's dependency on the government. Since poor people now have a way out of poverty through government welfare programs, it decreased their incentive to work, and therefore, hurt poor and lower-middle income families. They claim that high social welfare through these programs increased American dependency and caused a work shortage and unemployment. Therefore, even while it might have helped reduced poverty in the short term, the War on Poverty didn't give people the self-sufficience and upward mobility that it aimed to. Historians also point to the trends of already declining poverty rates before Johnson's administration, attributing the decrease in poverty to a pre-existing trend rather than directly correlating it with the War on Poverty.

Although the effects are somewhat mixed, at the very least, the War on Poverty helped impoverished Americans in the short term. Beyond that, it laid the foundations for these social programs which continue to help impoverished Americans today, and paved the way for future governments to help fight poverty.

This event influenced our proposal because it showed that the government could cause significant improvements in impoverished Americans' lives when it targeted what people needed and focused on policies to improve them. It also showed that social welfare by the government helps. Our proposal includes funding to the Department of Labor in order to allow them to make adjustments to the proposal and ensure the government stays involved.

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Significant Event 7: National Welfare Rights Organization (1966) (Mitch)

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Significant Event 7: National Welfare Rights Organization (1966) (Mitch)

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The National Welfare Rights Organization (NWRO) was an advocacy group that formed in the United States in the early 1960s to fight for the rights of impoverished individuals and families who were receiving public assistance, also known as welfare. The organization grew out of a series of local welfare rights groups and was officially founded in 1966. The NWRO engaged in a variety of advocacy activities, including organizing protests and demonstrations, providing legal aid to welfare recipients, and lobbying government officials for policy changes. They were crucial in shaping welfare policy during the 1960s and 1970s, including the creation of the Food Stamp Program and the Child Nutrition Act. At its height in 1969, the NWRO had a membership of as many as 25,000 people, the majority being African American women who often were on welfare. The organization eventually disbanded in the 1970s due to opposition from conservative politicians who believed that the organization promoted welfare dependency.

The SIGMA Act and the NWRO have the same values. Both fight for the quality of life for impoverished citizens to improve. The SIGMA Act would fulfill the needs of the NWRO, meaning they would no longer need to organize protests or demonstrations and everyone could get back to living a normal, improved life.

Tsuchiya, Kazuyo, “NATIONAL WELFARE RIGHTS ORGANIZATION (1966-1975)” Black Past https://www.blackpast.org/african-american-history/national-welfare-rights-organization-1966-1975/

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Artifact 5: NY Times Article from April 4, 1981 (Hari)

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Artifact 5: NY Times Article from April 4, 1981 (Hari)

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This article is written just before Reagan's cuts to Food Stamps and discusses the implications of this policy. It includes primary source evidence in the forms of interviews with experts in the field and leaders of nonprofit organizations at the time. These people argue that food stamps are effective and criticize Reagan's planned budget cuts. The article also presents arguments by Reagan's supporters as to why budget cuts need to be implemented.

This artifact is important because it gives valuable insight into the views of people at the time. Looking retrospectively, we can see that Reagan's budget cuts were harmful, but at the time, many of Reagan's supporters made predictions in the article that cuts would help, so this article allows us to understand the opinions of those people at the time, and allows us to compare their predictions to what actually happened.

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Significant Event 8: Reagan's Cuts on Welfare (1981) (Hari)

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Significant Event 8: Reagan's Cuts on Welfare (1981) (Hari)

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The Reagan Administration marked a significant change from Johnson's Great Society. In his inaugural speech, explained that the economic decline of the 1970s was “proportionate to the intervention and intrusion in our lives that result from unnecessary and excessive growth of government.” He argued that social welfare programs were wasteful and lured families into dependence. He believed that the government that helps families most helps them least and his rhetoric portrayed poverty as a moral failure.

In 1981 and 1982, Reagan made over $22 billion in cuts to social welfare programs, including federal student loans, social security, Medicare and Medicaid, and other acts that Johnson championed in the 1960s. One of the most significant reforms was to the food stamp program (SNAP). The budget cuts were so sever that hunger and malnutrition became widespread among low-income families. Reagan and his supporters counter that the welfare program reductions were needed to curb the excessive federal spending that was fueling inflation and creating dependency on the federal government.

These welfare reforms created a harmful cycle which made poor people poorer. When a three-year recession hit in 1980, six million more Americans fell into poverty, and a weak social safety net meant that workers often found themselves back in hardship after a small accident or illness. They also served as a major setback to improving conditions for impoverished Americans and made the poverty rate rise slightly. Even today, Claire Bond Potter, a professor of history at the New School for Social Research claims that "the myths of American individualism planted and nurtured under Mr. Reagan continue to cost us dearly as a nation."

This event influenced our proposal because it showed the negative effects of what happens when the government takes away support for poor people. Right now, due to inflation, minimum wage is effectively being reduced, just like what Reagan was doing, so the government needs to take action to counter it. Therefore, it should increase minimum wage to use the example of Johnson's social welfare progress and avoid the downfalls of the Reagan administration.

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Artifact 6: "Another Day in Paradise" by Phil Collins, released in 1989 (Hari)

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Artifact 6: "Another Day in Paradise" by Phil Collins, released in 1989 (Hari)

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Lyrics:
She calls out to the man on the street
"Sir, can you help me?
It's cold and I've nowhere to sleep
Is there somewhere you can tell me?"
He walks on, doesn't look back
He pretends he can't hear her
Starts to whistle as he crosses the street
Seems embarrassed to be there

The lyrics talk about the social problem of poverty and homelessness. In the song, the narrator tells the story of a random man on the street who ignores the suffering of a homeless woman despite the fact that she calls out to him for help. The man deliberately acts as though he can’t hear her and crosses the street to avoid the homeless woman. The message is to not treat homeless and poor people like they are invisible and to not ignore them. Collins said in an interview, "I wrote this after being in Washington DC where I was amazed by how many people I saw living in boxes."

This artifact is important because it illustrates the personal experiences of poverty in the last part of the 20th century. This song was also widely popular and received acclaim from Billboard, meaning its themes were exposed to a wide audience.

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Phil Collins - Another Day In Paradise (Official Music Video)

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Despite two-thirds of Americans supporting a federal minimum wage increase, it has stood at $7.25 an hour since July 2009 when it was last increased. Since then, it has lost 14.8% of its purchasing power to inflation (in 2018 dollars), and 28.6% less than it was at its peak in terms of purchasing power in 1968.

Our proposal is to increase minimum wage along with inflation.

First, there are tangible economic benefits to increasing the minimum wage. According to a 2021 Report by the Congressional Budget Office, raising minimum wage to $15 an hour by 2025 would raise wages of up to 27.3 million workers and lift 1.3 million families out of poverty. This would help millions of low-income families leave the cycle of generational poverty. The annual family earnings of the nearly 56 million affected workers nationwide would rise by an average of $5,600 as a result.

Other benefits for impoverished Americans include better overall health for low-income people because higher wages could make it easier for workers and their families to afford medical care, health insurance, and homes in safe neighborhoods. Higher wages could improve job satisfaction, and epidemiologists have found that higher job satisfaction improves worker health. Increased job satisfaction and higher wages can create a positive feedback loop as well, because people are able to spend more, stimulating the economy, which makes goods more affordable, further helping other impoverished Americans.

Opponents of minimum wage increases often argue that raising minimum wage makes inflation worse. However, the Economic Policy Institute found through a comprehensive study that even under a worst-case inflation scenario where every dollar in extra pay that results from moving the federal minimum wage to $15 contributes to higher prices, the result would be a long term inflation rise of 0.1% per year (or about 1/100th of the increase we’ve seen since 2021). The entire point of this bill is to counter the effects of inflation by allowing worker's salaries to compensate for the price increases.

Another common counterargument is that increasing minimum wage leads to job loss. However, these arguments have primarily theoretical grounds, and lack empirical evidence. According to Business for a Fair Minimum Wage, real states raised their minimum wages above the federal level during the 1997-2007, and these states did not experience significant unemployment or job loss. Additionally, research by the Fiscal Policy Institute and the Brookings Institute even found that states that raised their minimum wages above the federal level experienced better employment and small business trends than states that did not. In a 2013 report, the Center for Economic and Policy Research analyzed extensive research since the 1990s and concluded that “the minimum wage has little or no discernible effect on the employment prospects of low-wage workers" because “the cost shock of the minimum wage is small relative to most firms’ overall costs.” Higher wages could also help employers retain their workforce because their employees are happier, making them more productive, and limiting turnover costs from companies spending money to hire new workers.

Our proposal helps millions of Americans escape the cycle of poverty because they can finally earn a livable wage. It is backed by numerous studies, informed by historical precedent, and has few unintended consequences on other parts of the economy. Also, instead of a traditional minimum wage increase, raising minimum wage along with inflation into the future makes this proposal more sustainable and long-lasting.

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