Real Living Wage Act of 2025

Economy
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Purpose:
To update the federal minimum wage to reflect present-day economic realities, tie future adjustments to real cost of living metrics, and ensure all working Americans earn a wage that supports a basic standard of living.

Section 1: Short Title

This Act may be cited as the “Real Living Wage Act of 2025.”

Section 2: Immediate Adjustment of Federal Minimum Wage

a. New Federal Minimum Wage Standard

  • Effective January 1, 2026, the federal minimum wage shall be set to $17.50 per hour, reflecting inflation-adjusted purchasing power based on the cost of living in 2024 according to the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey.

b. Exceptions

  • The minimum wage for tipped employees shall be no less than 70% of the standard minimum wage, phased in over three years.
  • Employers with fewer than 5 full-time employees may apply for a temporary exemption (1 year maximum), subject to application and review.

Section 3: Annual Adjustment Mechanism

a. Cost-of-Living Indexation

  • Starting January 1, 2027, and annually thereafter, the minimum wage shall increase automatically based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

b. Wage Floor Guarantee

  • The minimum wage shall not decrease during periods of deflation; it may only remain unchanged or increase.

c. Adjustment Cap

  • Annual increases shall be capped at 5% per year to ensure predictability for employers while protecting wage earners.

Section 4: Commission on Living Wages

a. Creation of the Commission

  • A new Federal Commission on Living Wages shall be established within the Department of Labor.

b. Duties

  • Annually review whether the current wage adequately covers essential costs: housing, food, transportation, healthcare, and child care.
  • Provide recommendations to Congress on regional wage adjustments where needed.

Section 5: Enforcement & Compliance

a. Enforcement Authority

  • The Department of Labor shall enforce compliance, investigate complaints, and apply penalties for noncompliance.

b. Penalties

  • Employers found in violation may be subject to:
    • Fines up to $10,000 per violation.
    • Mandatory back pay to affected workers with interest.

Section 6: Severability

If any provision of this Act is found to be unconstitutional or invalid, the remaining provisions shall not be affected.

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The real minimum wage is always $0, which results when people are unemployed, which happens more frequently when minimum wage goes up.

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Any supporting data on your viewpoint?

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Consider, if you will, California.

Look at what happens when California passes a major minimum wage bill. Look at what happened when California passed its most recent minimum wage bill.

What was the recurring story? Businesses closing up shop because of the increase in minimum wage.

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1. Empirical Evidence Shows Modest Increases Don’t Cause Large Job Losses

  • Studies and meta-analyses, including those by the Congressional Budget Office and economists like Arindrajit Dube, consistently show that moderate increases in the minimum wage have little to no significant effect on overall employment.
  • Many regions and cities (e.g., Seattle, New York) that raised minimum wages saw stable or rising employment in low-wage sectors like hospitality and retail.

2. “Real Minimum Wage is $0” Is a Misleading Oversimplification

  • This phrase is rhetorical, not analytical. While it’s true that unemployed people earn nothing, the implication that raising wages directly causes unemployment overlooks the complexity of labor markets.
  • Unemployment is influenced by multiple factors: automation, economic cycles, regional demand, corporate consolidation—not just wage floors.

3. Higher Minimum Wages Can Increase Job Stability and Productivity

  • Paying workers more often reduces turnover, increases worker effort, and leads to greater job stability—all of which improve productivity and reduce hiring/training costs.
  • Businesses benefit from a more reliable, experienced workforce, especially in service industries where customer satisfaction matters.

4. Demand-Side Economics: Workers Are Also Consumers

  • Low-wage workers are more likely to spend their earnings, fueling local economies. Raising the minimum wage can stimulate demand, which may actually increase employment in many sectors.
  • Henry Ford’s old insight remains relevant: paying workers enough to buy what they produce supports broader economic growth.

5. Real-World Examples Contradict the Claim

  • Countries with higher minimum wages than the U.S. (e.g., Australia, Germany) do not have higher unemployment rates.
  • This suggests that well-calibrated wage floors do not inherently destroy jobs and may, in fact, coexist with strong labor markets.

Conclusion

The claim that higher minimum wages necessarily lead to joblessness and “real wages of $0” is not supported by economic consensus or evidence. A nuanced view shows that moderate increases in the minimum wage tend to benefit workers and communities without significantly harming employment.

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Where, exactly, is your information coming from?

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I asked you first and you said nothing. still waiting. But for sake of sanity;

1. Improved job retention & reduced turnover

2. Better employee morale, health & productivity

3. Increased earnings & poverty reduction

4. Positive business & municipal outcomes

5. Health & well-being

In summary:

Real Living Wage policies deliver robust, measurable benefits:

  • Workers gain stability, better health, mental well-being, and reduced poverty.
  • Employers benefit from reduced turnover, boosted morale/productivity, and cost savings in recruitment/training.
  • Communities/municipalities see economic uplift, reduced reliance on public assistance, and improved public health.

:round_pushpin: Caveats & nuances

Bottom line:
A broad body of high-quality evidence supports the Real Living Wage as a powerful tool to improve economic security, health, and productivity—while also boosting business performance and cutting public costs. Let me know if you’d like specific case studies or data from particular regions!