The minimum wage crisis is critical to address. Hundreds of families around New York City suffer daily because the minimum wage is not increasing, whereas rent and a variety of other expenses are heavily affected by inflation.

In 1963, the famous March on Washington for Jobs and Freedom took place. There were about 250,000 people who attended, traveling from around the world to Washington, D.C.,  to participate in this movement. Those who participated demanded an increase in minimum wage and overall better pay for all of those employed. 

The protest was a success — slight but meaningful increases took place and the Fair Labor Standards Act of 1966 was passed.  

“The hourly rate hasn’t kept up with the cost of living since 1970. The earnings of a minimum wage worker with a family of four fall well below the poverty line,” said Andrew Bloomenthal, a Syracuse graduate who specializes in financial journalism. 

New York City is currently known as one of the most expensive cities to live in. Rent is averaged to about $3,470 per month, while the minimum wage as of January 1st, 2024 is $16 per hour. Previously, the minimum wage was $15 due to constant complaints and issues arising from the overworked people of New York City. 

Even when the minimum wage increases, inflation does simultaneously, resulting in little to no change for those working in minimum-wage jobs.

By definition, inflation is the increase in the price of goods and services. This can be due to various factors, such as increased raw materials and labor costs.

Another thing to note is that inflation can also be caused by workers requesting a pay increase, which would lead to having to sell the items being produced for larger prices, thus creating a never-ending cycle of increased inflation and too little pay. 

Unfortunately, solving this issue is tricky and more complicated than it may seem. 

According to Adam Hayes, a Cornell graduate specializing in writing economic sociology journalism, “No, the federal minimum wage is not tethered to inflation. The annual minimum wage set by the federal government does not change each year in response to changes in prices.”

By continuously having the minimum wage rate lower than inflation, it harms those who rely on minimum wage pay to live comfortably. 

Research conducted by Drexel University reports that “While the minimum wage has been adjusted numerous times since its implementation in 1938, it has failed to keep up with inflation and the rising cost of living.” 

There have been solutions posed to try and aid the crisis currently happening – multiple different laws have been suggested to try and raise the minimum wage. For example, in January of 2023, Governor Hochul proposed and executed a plan to raise the minimum wage corresponding to inflation percentages. 

Statistically speaking, rent has increased about 8.86 percent since 1980. However, the wage increase has yet to match this increase in the slightest bit. 

The clear difference between the rate of rent and wage is further proof of this inequality and explains for those protesting against the current rate of minimum wage.  

In November of 2022, it was reported by Eyewitness News that multiple protesters including various workers of different occupations, business owners, and lawmakers gathered at New York City Hall to protest about the unfair minimum wage rates. Their goal was to increase the minimum wage from $15 to $20.

This protest was inspired by a previous protest regarding minimum wage where the group “Raise New York,” raised the minimum wage  to $15 per hour. 

Furthermore, the minimum wage debate corresponds directly with broader issues regarding systemic inequalities. By raising the minimum wage, these systemic inequalities such as the distinct pay gap between white workers and workers of color can drastically lessen. 

“Our new research shows that Congress’s decision in 1966 to both raise the minimum wage and expand it to workers in previously unprotected industries led to a significant drop in earnings inequality between Black and white Americans,” stated Ellora Derenoncourt and Claire Montialoux, economists at the University of California, Berkeley.

This crisis is actively causing immense housing, renting, and overall life issues for minimum-wage workers living in New York City. Low-wage workers cannot afford necessities and struggle to survive day-to-day life. 

Other issues arising from the minimum wage crisis are the harmful effects on small businesses, and gaps in enforcement and compliance.

With the topic of small businesses, the main buyers for these smaller businesses are those who make minimum wage or somewhere close to that. 

If people are unable to pay rent, how can they afford purchasing from family-owned businesses?

That, in turn, harms businesses that heavily rely on these sales to be able to afford their day- to-day lifestyles and support their households. It’s a never-ending cycle that will not change unless wages change. 

Low minimum wage rates put people in a tough position where they are forced to get a second or even third job. Hundreds of people everyday are overworked and underpaid, forced to work day and night shifts daily to have enough money to support their household. 

The percentage of people working multiple jobs is about 8.4 million people currently, which is about 6% of all women and about 4.7% of all men in the workplace. 

Working multiple jobs is extremely tiring and sometimes still isn’t enough to support these workers’ families. 

However, raising the minimum wage is not the easiest task to perform. Raising the minimum wage comes with a multitude of challenges. Some people question and fear minimum wage increases and businesses pass higher labor costs which raises the price of consumer goods to make up for the lost money. 

There are even jobs that fit in a sub-minimum wage category such as those in the restaurant industry, or more specifically waiters and waitresses. Where these workers are paid lower than minimum wage because they are expected to cover the difference in tips. 

“Despite some improved state laws, employers of tipped workers are required by federal law to pay a mere $2.13 an hour,” stated Ellora Derenoncourt and Claire Montialoux, economists at the University of California, Berkeley.

Tipped workers are more likely to be living in poverty, due to them having to rely on tips to be able to live. To be paid comfortably, they are often working harder with little to no results.

Additionally, those in the service industry who rely almost entirely on tips are left to wonder each day if they will make enough money to carry them on the days they make less. It’s constantly a surprise if they’ll be able to afford living, especially in a city as expensive as New York City. 

Raising the minimum wage will not solve all the issues within the working industry – problems are rooted deep within the system and fixing the pay rates won’t change. However, raising the minimum wage might be the one decision that changes people’s lives entirely and makes it a little bit easier to live comfortably. 

People’s lives are being affected at this very moment, and low-paying jobs are one of the issues pushing these working people into poverty and harsh living conditions.

Raising the minimum wage will not solve all the issues within the working industry – problems are rooted deep within the system and fixing the pay rates won’t change. However, raising the minimum wage might be the one decision that changes people’s lives entirely and makes it a little bit easier to live comfortably.