About the minimum wage...

In the recent Democratic presidential primary, Bernie Sanders made the $15 minimum wage a key aim of his agenda. His appointees to the platform committee were able to embed it into the 2016 Democratic platform. Increasing the minimum wage would have a positive effect on the economy - it will increase the circulation of functioning capital in the economy.

But why do politicians always define the minimum wage at a fixed dollar amount instead of indexing it to a updated metric? The current minimum wage of $7.25 was effective as of July 24, 2009 - 7 years ago! Inflation has increased prices across the board for all consumer goods, yet the minimum wage has not increased. The poorest earners have had the least capacity to improve their incomes to meet their daily needs. But instead of resolving the issue once and for all, Congress, more accurately, the partisan politicians in Congress, use the minimum wage as a wedge issue to their own ends. Republicans claim it will hurt jobs and young (meaning teenage)/part time workers. Democrats argue it would increase demand which improves the economy overall. Both sides aim to divide the electorate into pro or con minimum wage increase for party tribalism.

This is harmful and disrespectful of voters and workers and damaging to the economy by allowing the whims of Congress-persons to order the survival and well being of a large swathe of the population. Congress should instead peg the minimum wage to an annual metric. There are several that would work. I happen to think a full time minimum wage should equal half the per capita GDP of the prior year. For example, as of July 2016, GDP per capita was $51,486.00. Round to a easier number - 51,500 - and divide by 2 for $25,750 annual salary. $25,750 annual salary is equal to $13.34 per hour - less than the $15/hr in the Democratic platform but would increase or decrease based on economic performance as a whole. This approach would do much to protect low wage workers from the vicissitudes of public office holders.