Why corporations need a higher minimum wage
Minimum wage was started in the 1920s by Frances Perkins to stop income disparities in marginalized communities. She knew the only way to break the cycle of poverty is to create real economic change through policy that gives everyone a chance for financial prosperity.As inflation grows, so does minimum wage and as of January 1st, 2023, in the US the average minimum wage is roughly $15.30. Minimum wage is a policy/regulation set in stone across the board, without wiggle room for those who (because of their business/corporations net worth) should be paying the people who make their success possible a lot more.
This year, Walmart reported their average yearly wage is 31,000 a year. This is not only less than minimum wage in many states, it's pennies compared to the $108.6 billion dollars Walmart is worth, and the $25 million the CEO makes a year. Walmart isn't the only example, Amazon’s average salary is $25,000, and they are worth $1.4 trillion!
It's understandable that small businesses would pay minimum wage, especially in this economic climate. As of 2022, 19 percent of small businesses closed for good and the average net worth of small businesses (with employees) at that time was $1.5 million. It makes sense in order to save money to keep their business afloat small business owners would pay less.
But what doesn't make sense is that corporations like Target, worth $80 billion, and Best Buy, worth $91.8 billion, pay the same as businesses whose net worth is less than an eighth of theirs. This is clearly unfair, why should corporations with more resources pay the same as those with less?
I'm not naive, I know that in order to create an incredibly successful corporation you need to be ruthless. But once you are successful, it's your duty as an American to pave the way for your employees to experience the same prosperity.
The evidence above leads me to push for government intervention to enact regulations that make corporations who are worth more than $10 billion pay their employees at least $75,000 a year. If corporations follow the regulations, they would be eligible for tax breaks.
I believe in an ideal world, corporations should be taxed heavily, but we don't live in an ideal world. We live in a world of greed, and power hungry people. If we want to fix our current economic state we need to compromise. These regulations will end up being a mutually beneficial arrangement for the US government, its people and the corporations. Because, corporations would attract more employees while getting tax breaks and the US people will have the opportunity for savings, and generational wealth. In 2021, 1 in 5 Americans didn't have any money in the bank. That is a real problem that affects our economy, and the everyday lives of every American citizen.
Corporation minimum wage regulations would remedy that, $55,000 is the mean average minimum livable wage for all fifty states , and I believe adding $20,000 to that can add opportunities for investment, savings, and generational wealth. Not only that, but it would push corporations to treat their employees with humanity, and compassion, not like slaves who don't deserve a livable salary. .
My proposal is not only mutually beneficial for the corporations, government and people, but it will advance our economy and give average Americans the ability to build a life of their dreams, and isn't that what America is all about?
Ruby Seidner lives and writes in her small town in the middle of Northern California. Ever since she was a little girl, she has been obsessed with every form of storytelling, fiction and nonfiction alike. Now, she is excited to share that passion with you! She enjoys poetry, cooking, and watching marvel movies in her free time.