Give America a Raise Act
Summary
The "Give America a Raise Act" proposes incremental increases to the federal minimum wage, ultimately reaching $20.00 per hour, four years after the act's effective date. It also indexes future increases to inflation or GDP growth. The bill further addresses the wages of tipped employees and newly hired employees under 20, phasing out separate minimum wages for these groups and ensuring they eventually earn the standard minimum wage.
Expected Effects
The Act aims to improve the financial well-being of low-wage workers. It will likely lead to higher labor costs for businesses. This could potentially impact employment levels and prices for consumers.
Potential Benefits
- Increased wages for low-income workers, potentially reducing poverty.
- Automatic adjustments for inflation or GDP growth, maintaining wage value.
- Simplification of wage structures by phasing out separate minimum wages for tipped and young workers.
- Enhanced economic self-sufficiency for individuals with disabilities through wage increases and transition assistance.
- Strengthened labor rights and worker conditions by ensuring fair wages and tip retention.
Potential Disadvantages
- Potential for job losses due to increased labor costs for businesses.
- Possible price increases for consumers as businesses adjust to higher wages.
- Increased operational costs for businesses employing tipped workers and those with disabilities during the transition periods.
- Uncertainty regarding the impact of automatic wage adjustments based on inflation or GDP growth.
- Potential strain on small businesses that may struggle to afford the increased wages.
Most Disadvantaged Areas:
Constitutional Alignment
The Act aligns with the Constitution's goal to "promote the general Welfare" (Preamble) by aiming to improve the living standards of low-wage workers. Congress has the power to regulate interstate commerce (Article I, Section 8), which includes setting a federal minimum wage. The phased approach and consideration of economic factors may mitigate potential negative impacts on businesses.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).