You're right that $7.25 an hour is not a living wage in most places, and I think everyone agrees people should be able to support themselves through honest work. The question is whether a federal minimum wage hike is the best tool to achieve that.

First, some context: according to the Bureau of Labor Statistics, only about 1.3% of all hourly workers — roughly 621,000 people — actually earn the federal minimum wage or less. That's because 30 states plus D.C. already have higher minimums, and market forces in a competitive labor market push wages well above the floor. The median hourly wage in the U.S. was $22.26 as of mid-2023.

The Congressional Budget Office analyzed a $15 federal minimum wage proposal and found it would raise wages for 17 million workers but eliminate approximately 1.4 million jobs. Those job losses hit the least-skilled workers hardest — teenagers, part-time workers, and those without high school diplomas. A study published in the Journal of Labor Economics found that minimum wage increases lead to reduced hours, fewer entry-level positions, and accelerated automation.

Small businesses are particularly vulnerable. The National Federation of Independent Business reports that labor costs are already the top concern for small business owners. A mandated wage increase doesn't come from corporate profits in most cases — it comes from raising prices, cutting hours, or eliminating positions.

The cost of living varies enormously across the country. A $15 minimum wage might make sense in San Francisco, where a studio apartment costs $2,500 a month, but it would devastate small businesses in rural Mississippi, where the median household income is around $48,000.

Better alternatives exist: the Earned Income Tax Credit directly subsidizes low-income workers without destroying jobs. Expanding skills training and apprenticeship programs helps people command higher wages naturally. These approaches lift people up without pricing them out of the labor market.

The goal of helping low-wage workers is admirable. The disagreement is about the method, not the intention.