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A $15 Minimum Wage: What Will it Mean for Brevard?
A $15 Minimum Wage: What Will it Mean for Brevard?
Floridians voted to raise the minimum wage. What will this mean for companies and workers in Brevard?
In November of 2020, Florida voters made the monumental decision to raise the state minimum wage. Currently set at $8.65 an hour, the wage will increase by $1 every year until it eventually reaches $15 on September 30, 2026. The initiative focuses on increasing minimum wage to $15 in order to help low-income families.
President Franklin D. Roosevelt established the first minimum wage for American workers in 1938. It was only 25 cents per hour, which would be about $4.50 today. The original purpose of minimum wage was to help workers after the Great Depression and ensure they were being properly compensated for their work. In the President’s statement on the National Industrial Recovery Act, he spoke about the intentions of minimum wage.
“No business which depends for existence on paying less than living wages to its workers has any right to continue in this country,” said Roosevelt.
Unfortunately, minimum wage has gotten far more complicated since 1938. Inflation, increases and discrepancies in cost of living, outsourcing labor, and much more have made establishing a uniform minimum wage extremely difficult. Florida’s plan to fix this issue is under major scrutiny.
Florida’s new minimum wage has drummed up lots of controversy, especially after Biden and other Democrats called for a federal $15 minimum wage on January 28th. Their proposal is quite similar to Florida’s, with the wage steadily increasing over four or five years to eventually reach $15 an hour. Before it became a national debate, Florida was very split over the benefits and consequences that come from raising the minimum wage. Arguments center around more spending money for employees, higher labor costs for employers, and whether it would increase or reduce poverty.
Some oppose raising the minimum wage because of its unintended consequences: outsourcing, decrease in the amount of jobs, and higher prices for consumers and businesses. They claim that it will force many small companies to take cuts in profit without seeing much benefit. Jessica Beal, a pharmacist at Hobbs Pharmacy in Merritt Island, voiced her concerns on increasing the minimum wage.
“Even though we are super excited for the raising of minimum wage, we felt that, as a small business, it was going to negatively impact us," said Beal. "Already, our largest expense is labor and the cost of our products is fixed by insurance. We have to figure out new ways to offset the new costs because we can’t raise prices.”
Many small business owners are struggling to find ways to maintain their current system after wage costs increase. Some may decrease employees' hours, let go of employees, or source their merchandise from cheaper manufacturers. On the bright side, increasing wages means that customers may be able to afford higher-quality products, adding a benefit for some businesses.
The reasoning behind the voters' decision to raise the minimum wage was multiple; voters cited potential benefits from the wage increase such as boosting the economy, increasing standard of living, and lowering the public coast of welfare. In general, they believe that raising the minimum wage will be beneficial for everyone because it puts more money and trade into the economy.
Many are questioning if $15 is the correct amount for Florida’s minimum wage. Living wage is the hourly rate someone can live at a normal, yet minimal, standard of life. According to a calculator offered by MIT, the living wage for one adult with no children in Brevard would be about $11 an hour. A living wage for one adult with a child would be $24.30. With the same calculations for all of Florida, the average living wage of one adult with a child would be $25.50.
It’s very clear that the minimum wage does not fit every situation, nor will it ever. But, there still needs to be regulations around how little a company can pay someone. Beal spoke about how the minimum wage increase would be good for local customers.
“A lot of our patients are living paycheck to paycheck, and they can’t afford their medications from a single paycheck. Some patients don’t refill their prescriptions enough because the copay is too expensive. Our customers sometimes struggle to pay for all their medications, especially if they have multiple conditions,” said Beal.
Minimum wage has formed a political rift in the state. Many claim that $15 is far too much to be the minimum, while others claim that it should be far more. Someone in a more rural county, living in very cheap housing, who spends little on entertainment or travel, could live well off of their minimum wage. However, a single parent living in an urban town may never be able to afford the bare minimum even if they’re paid above minimum wage.
That’s why the issue is so complex; no one wage can fit every situation. So should the minimum wage fit those who need it the most, or should it truly be the very minimum? That’s for Florida and U.S. voters to decide.
This is Alicia's second year at Edgewood and first year on the Edge staff. She loves writing, debating, and bettering Brevard. She hopes to educate and entertain the members of her community.
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