NJ Lawmakers Battle To Raise Minimum Wage, Critics Argue $25 Per Hour Is 'Socialist'

A heated battle to raise the federal minimum wage to $25 per hour continues to play out in the halls of Congress, with another high-profile lawmaker from New Jersey throwing his support behind the effort this week.

On Thursday, lawmakers announced plans to introduce the “Living Wage for All Act” in the U.S. Senate. A companion bill has been introduced in the U.S. House of Representatives.

The legislation would gradually increase the federal minimum wage across the United States over the next decade. Large corporate employers would be required to implement a $25 wage floor by 2032, while other businesses would have until 2039 to do so.

The proposal would also guarantee a “living wage” for workers by mandating automatic increases of the minimum wage to two-thirds of the national median wage. Existing subminimum wages for tipped workers, workers with disabilities and youth workers would be phased out gradually.

U.S. Sen. Andy Kim of New Jersey is among the co-sponsors of the bill, which is being introduced by Sen. Chris Murphy, a fellow Democrat from Connecticut.

“A living wage should never be too much for anyone to ask for in this country,” Kim urged.

“Working families are having to stretch their dollars more while billionaires get the biggest breaks because they write the biggest checks,” the senator added. “It’s time we give the American people a real chance at the American Dream – that’s only possible by providing a living wage.”

The push to hike the minimum wage is catching flak from critics, who claim it would increase unemployment, add to inflation, potentially “crush small businesses” and pass on the cost of doing business to customers.

On the flip side of the coin, supporters argue that an update to the federal minimum wage – which has remained at $7.25 per hour since 2009 – is long overdue. Advocates point to worsening economic struggles for working-class families, in addition to widening wealth gaps and record-high corporate profits.

If it crosses the finish line, the Living Wage for All Act would mean that some states have catching up to do – including New Jersey, where the state minimum wage increased to $15.92 per hour this year for most employees.

The House version of the bill has picked up support from several Democratic Congress members in New Jersey, including Donald Norcross (NJ-1), LaMonica McIver (NJ-10), Analilia Mejia (NJ-11) and Bonnie Watson Coleman (NJ-12).

Mejia – who is one of the bill’s champions in the House – said it is “time to build an economy that works for all, not just billionaires and corporations.”

“Working families are paying more for just about everything,” said Mejia, who was recently elected to fill the unexpired term of Gov. Mikie Sherrill.

“Inflation is at its highest level in three years, while the costs of housing, groceries, and everyday essentials continue to climb,” Mejia said. “Yet the federal minimum wage has been frozen since 2009. That is outrageous. If you work full time, you should be able to afford to live with dignity.”

Opponents of raising the minimum wage include former Randolph Mayor Joe Hathaway, a Republican who is running again against Mejia for Sherrill’s former congressional seat.

“A $25 federal minimum wage would crush small businesses and raise costs on working families,” Hathaway recently commented, decrying the idea as a “socialist policy.”

The New Jersey Libertarian Party has also criticized the Living Wage for All Act, alleging that the bill is “woefully blind to the economics behind affordability.”

“Workers might applaud this bill’s passage now, but when their jobs are phased out and the costs of their needed goods and services grow even more unaffordable, they will realize that once again, the government has made their situation worse,” party chair Bruno Pereira said.

Supporters of the bill continue to push for its passage, however, including John Driscoll, chair of Magnit Global.

“From my own experience as a CEO, I know that a well-paid workforce is more focused, motivated, and productive—and therefore will deliver stronger returns in the long run,” said Driscoll, a member of the Patriotic Millionaires advocacy group.

“Workers and businesses alike will win under the Living Wage For All Act,” Driscoll added.

• Related: More NJ Lawmakers Back $25 Federal Minimum Wage Bill
• Related: NJ Raises Minimum Wage To $15 – But It Still Isn’t Enough To Live On
• Related: These 88 Corporations Paid Zero Fed Income Taxes Last Year, Report Says

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