In late January The Biden Administration made the decision to execute sweeping pay increases, raising all federal minimum wage workers’ pay to at least $15 per hour. Previously, the minimum wage was $10.95. The changes should be implemented by the end of January 2022 and will affect at least 67,000 workers.
“As the largest employer in the country, how the federal government treats its workforce has real impact,” said Kiran Ahuja, Director of the Office of Personnel Management (OPM), in a statement. “The Biden-Harris Administration believes that the federal workforce should be treated with dignity and respect. Raising pay rates across the federal government to a minimum of $15 per hour reflects our appreciation for the federal workforce and our values as a nation.” The OPM’s primary function is to act as the main Human Resources agency and personnel policy actor for all Federal workers.
In the 2020 election, Biden made prioritizing blue-collar workers’ issues a center-point in his campaign. Despite this positive focus, $15 per hour is not technically a living wage. A living wage is the amount of money that a worker needs to sustain themself and their family. Adults with at least one child will not be able to survive on $15 per hour. Biden has not acknowledged this and has not expressed intent to raise the minimum wage in relation to inflation.
Amanda Lea, an art teacher at Barstow, reflects on her past retail job. “Before I got bumped up above $15, I felt really stressed all the time,” Lea says. “I would have, like, barely enough money to pay rent, and necessarily enough to, like, spend on other expenses, so things were always really, really tight. Once I got past that $15 threshold, things were a lot easier for me. I was able to have like a tiny bit of disposable income and spend more money on going out or buying clothes, versus having to, like, struggle all the time.” Lea worked at this retail job prior to major rises in inflation.
Many carry conflicting views about whether or not raising the federal minimum wage causes inflation. However, inflation often outpaces changes to the federal minimum wage, and rises in inflation do not strongly correlate to federal minimum wage rates. In fact, a study done at the W.E. Upjohn Center for Employment Research, found that inflation rates, on average, rise for only the month after wages are increased. This aligns with the fact that in the past year, inflation rates have increased in a record jump while employment rates, though increasing since last year, remained at an abnormal low.
“At Barstow, we have this bubble of privilege where [minimum wage is] not something we have to think about,” says Anita Mohan (‘23), who works at a veterinarian’s office and makes $7.25 per hour. “Realistically, Barstow kids are not paying for their own stuff.”
What’s your Kansas City living wage? Find out here.
