States and cities have been increasing their minimum wages annually since before the pandemic struck in early 2020 and have set higher rates for 2022.

https://www.cnn.com/2021/12/31/politics/minimum-wage-increase-2022-15-dollars/index.html

https://www.paycor.com/resource-center/articles/minimum-wage-by-state/

Public Policy is More Favorable

Historically, corporations and supporters have highlighted the negative impacts of small/large and narrow/broad minimum wage increases (2019 example).

https://fee.org/articles/support-for-15-minimum-wage-plummets-when-americans-are-told-its-economic-impact/?gclid=Cj0KCQiAlMCOBhCZARIsANLid6ZmQXEJ_4xmXTiQ3n16kSGLLqLvgeS_hdpoSlXwUR_oD-_b9NK3AfcaAtBvEALw_wcB

Historically, economists generally emphasized the negative short-term and long-term impacts of significantly higher, broadly applied minimum wage increases. Studies in the 1990’s indicated that the negative effects of moderate minimum wage increases could be relatively small, so economists’ articles have been more balanced in the past 3 decades.

https://en.wikipedia.org/wiki/Minimum_wage

Some more liberal leaning economists have been actively suppporting minimum wage increases as the US minimum wage has continued to decline on a real, after inflation basis, US minimums have fallen compared with other developed countries and the US distribution of income has become more unequal and poverty rates have not fallen despite US economic progress.

Economists in support of a federal minimum wage of $15 by 2024

Some economists even point to the self-serving benefits of higher minimum wages for corporations, including greater productivity, innovation and retention.

Businesses can thrive with a higher minimum wage, and government can help

There does not appear to be widespread business or general public support for Biden’s across the board $15 per hour minimum wage proposal.

https://www.pbs.org/newshour/health/how-economists-see-bidens-15-wage-proposal

Biden has been able to increase minimum wages on government contracts.

https://news.bloomberglaw.com/daily-labor-report/biden-orders-15-minimum-wage-on-federal-contracts-by-march?context=article-related

But, large corporations are increasing their own minimum wages and trying to position themselves as supportive of “common sense” public policy changes that do not impact themselves very much. Some critics say that this is because large corporations can absorb higher minimum wages through their economies of scale and pricing power, while smaller businesses cannot and will go out of business, resulting in further growth of power for large businesses.

https://www.usatoday.com/story/opinion/2021/02/26/big-business-behind-push-for-15-minimum-wage-column/4545386001/

Surprisingly, recent survey research indicates that many small businesses also do not stridently oppose modest minimum wage increases.

https://www.verizon.com/business/small-business-essentials/resources/most-small-businesses-support-minimum-wage-hikes/

Corporate Minimum Wage Increases

Perhaps more importantly, large corporations in a variety of industries have voluntarily increased their minimum wages from the $12/hour to the $15/hour plus range in the last 2 years. (Out of self interest).

Banking

Bank of America to raise minimum wage to $25/hr by 2025

https://www.abc4.com/news/national/bank-becomes-latest-to-increase-minimum-hourly-pay-rate/

https://www.americanbanker.com/news/fifth-third-is-latest-bank-to-raise-its-minimum-wage

https://www.yahoo.com/now/wells-fargo-raises-minimum-wage-215921054.html

https://www.bizjournals.com/boston/news/2018/01/25/santander-to-raise-minimum-wage-to-15-per-hour.html

Health Care

CVS raising minimum wage to $15 next year

https://www.lexology.com/library/detail.aspx?g=cdb8465e-3eaf-45aa-8d9d-e7946210ba3a#:~:text=Walgreens%20is%20the%20latest%20retail,more%20workers%20with%20larger%20wages.

https://www.courant.com/business/hc-biz-cigna-tax-benefits-20180131-story.html

Fast Food

https://thehill.com/business-a-lobbying/business-a-lobbying/578847-starbucks-to-raise-us-minimum-wage-to-15-by-next?rl=1

Chipotle to raise prices after committing to pay employees more

https://www.businessinsider.com/mcdonalds-raises-minimum-wage-aims-average-15-per-hour-2021-5

https://www.restaurantdive.com/news/taco-bell-to-raise-average-minimum-wage-to-15-an-hour-by-2024/611490/

Various Industries

Southwest Airlines to up minimum wage to $15 per hour

https://qz.com/2060508/what-amazons-18-average-hourly-wage-means-for-other-employers/

https://www.masslive.com/business/2021/01/wayfair-sets-15-minimum-wage-for-all-us-workers.html

Minimum Wage For Walt Disney World Cast Members Raised to $15

Retailers

https://fox59.com/news/national-world/hobby-lobby-raises-minimum-wage-to-18-50-hr/

https://www.npr.org/2021/02/25/971338686/costco-to-raise-minimum-wage-to-16-an-hour-this-isnt-altruism

https://corporate.bestbuy.com/best-buy-provides-updates-on-evolution-of-employee-pay-and-sales-performance/

https://www.cnbc.com/2020/06/17/target-raises-minimum-wage-to-15-an-hour-months-before-its-deadline.html

https://www.npr.org/2021/02/25/971338686/costco-to-raise-minimum-wage-to-16-an-hour-this-isnt-altruism

https://www.cnbc.com/2021/09/14/sams-club-raises-minimum-wage-to-15-as-tight-labor-market-continues.html#:~:text=Sam%27s%20Club%20said%20Tuesday%20that,than%20its%20parent%20company%2C%20Walmart.

https://www.businessinsider.com/under-armour-minimum-wage-us-canadian-labor-shortage-2021-5

Summary

https://www.goodreads.com/quotes/25909-you-don-t-need-a-weatherman-to-know-which-way-the

Wages for less skilled and less experienced positions are increasing – dramatically – in the USA – in the last 5 years, especially since the pandemic reduced the supply of labor, and going forward. Larger companies have seen the costs of higher turnover and decided that they are going to offer relatively higher wages and find ways to generate enough economic value added to justify these marginal (incremental) investments. Politicians in left-leaning and centrist areas have pushed through higher minimum wages. Lower experience and lower skilled workers are able to take advantage of this situation. This is “good news” for these individuals. It is also “good news” for the economy because it has prompted firms to find ways to restructure work, processes, tools, technology, etc. to add more value from each employee.