Opinion: Lawmakers should tie minimum wage to the Consumer Price Index to help narrow the income gap
By Tyler Jones Sr.
The writer is a Wicomico County resident and interim communications chair for the Lower Shore Progressive Caucus.
Indexing the minimum wage to the Consumer Price Index is an essential component of The Fair Wage Act. The Act, which fulfills Governor Moore’s promise to accelerate the implementation of the state’s $15-an-hour minimum wage, will provide low-wage workers with a much-needed boost in income and will help to narrow the income gap.
Without indexing, the minimum wage would be subject to the same challenges that have plagued it for years. As the cost of living continues to rise, the minimum wage would become less effective in helping workers maintain a decent standard of living. This would be particularly detrimental to low-wage workers, who are often the most vulnerable members of our society.
Indexing the minimum wage to the Consumer Price Index will help to ensure that the minimum wage keeps pace with inflation and that low-wage workers are not left behind as the economy evolves. The cap of 5% per year is a reasonable compromise that will provide workers with a fair and steady increase in their wages, while also allowing businesses to adjust to the changes.
Furthermore, indexing the minimum wage to the Consumer Price Index will help to create a more stable and predictable business environment. By providing businesses with a clear and predictable wage structure, they can plan and budget more effectively, leading to greater stability and growth in the long term.
In conclusion, keeping indexing in The Fair Wage Act is an important step towards creating a more just and equitable society. It will benefit low-wage workers, their families, and the broader economy, and it will help to narrow the income gap between workers and business owners. It is a common-sense measure that will help to ensure that our economy works for everyone. We hope the General Assembly will keep this vital aspect included in the final bill.
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