I'm betting that this is a case where local/state economies will make a lot of the federal heel-dragging on minimum wage irrelevant.

Here in PDX, we have a minimum wage of $15, scaled to go up annually on July 1. I want to say that almost have of the states have minimum wage laws that require hourly rates above the $7.25 federal standard.

Comparing unemployment pay over the past 14 months is very misleading. Depending on the point they want to make, people either include or leave out the federal CARES payments, which were between $600-$300/week, depending on other programs and how states chose to respond to COVID.

But it is true that unemployment benefits, on average, are better than working full-time at the federal minimum wage. Because the federal minimum wage should have been increased. Of course, most people can't stay on unemployment indefinitely, but why would someone rush out to work for $7.25/hour when they really do get more in unemployment until their benefit runs out (and assuming they qualified in the first place).

quote:

Of course, most people can't stay on unemployment indefinitely, but why would someone rush out to work for $7.25/hour when they really do get more in unemployment until their benefit runs out (and assuming they qualified in the first place).

A couple of friends have groused about this. One owns a company that manages hotels and the other one just grouses. They're both good people but I thought there was a perspective they were missing, so I countered with:

Why wouldn't people make a decision based on its financial impact on them, especially if they are barely making ends meet to begin with? Don't you? Don't we all?

You let people go when all your hotels closed. The people you fired still had rent and other bills to pay. You made the decision you thought was best for your company, but it negatively impacted the people who were fired. In one sense, the shoe is just on the other foot now. Life is like that.

Let's talk tax deductions. I took mortgage interest and property tax deductions for several decades on my second home. Saved me a ton of money. ( Oh, and I never thanked you for contributing your fair share so I could afford the luxury of a vacation home...so, thanks a bunch....) I can assure you I didn't need it in order to be able to keep a roof over my head, food in the frig, or health care should I get sick.... How did you feel about that? (I was a bit more polite, but the point was the same....)

Always a good idea to examine things from various viewpoints, I think.