Does minimum wage hurt workers?

Pros and cons of minimum wage

The federal minimum wage hasn’t been raised since 2009. Over the past decade or so, proponents of significantly raising the minimum wage have argued that doing so could reduce reliance on government financial assistance programs and increase consumer spending. But opponents say higher labor costs could lead to job cuts.

The federal minimum wage in the US has been $7.25 per hour since 2009

While some argue that raising it is essential for reducing poverty, others fear it could lead to inflation and job cuts. The complexity deepens with states setting their own minimum wages—some even below the federal rate—leading to a patchwork of wage laws.

The US had roughly 1.6 million minimum wage workers as of 2021

Typically, minimum wage workers are young. They’re not only more likely to be a woman than a man, but also more likely to be single than married.

Some argue that restricting illegal immigration would raise wages for lower-income American workers

The Heritage Foundation argues that illegal immigrants' willingness to work for below-market wages suppresses wages for low-skilled American workers—and that reducing illegal immigration would increase wages and job opportunities, particularly for workers without a college degree.

See every time the minimum wage has been raised

Unlike some other nations, the US minimum wage isn’t tied to inflation. So instead of it automatically rising alongside the cost of living, Congress has to vote to raise the minimum wage every time they think it’s necessary.

An economic evaluation of US tariffs

Most economists agree that the implementation of large-scale tariffs on foreign goods would hurt both the American and global economies. This video from The Wall Street Journal explains the rationale for tariffs as a tool for domestic job creation, but explains why they may hurt the overall economy.

Do unions still work?

Workers everywhere from Starbucks to Uber have made headlines about unionizing—and some union experts argue that despite union membership being lower than it was in eras past, unions could still help the economy.

Many states require higher direct wage amounts for tipped employees than the federal requirement

Employers of "tipped employees" are required to pay them $2.13 per hour in direct wages if that amount, combined with the tips, at least equals the federal minimum wage of $7.25. If the employee's tips combined with the employer's direct wages of at least $2.13 per hour do not equal the federal minimum hourly wage, the employer has to make up the difference. However, this differs from state to state. This interactive map shows what tipped workers make per hour in every state.

COVID-19's shock to employment rates sparked some economists to fear deflation

COVID-19 simultaneously disrupted the supply chain and the labor market. Since the unemployment rate had hit record highs, some economists were worried that the supply chain would recover before the labor market. If that had happened, businesses would have been producing goods, but no one would have been able to buy them because they wouldn't have the disposable income to do so.

Technological advancements are historically deflationary

Technological innovation can drive down costs and prices for businesses, which can increase real wages for employees. As a result, people have more money to spend and demand increases.

Americans spend an average of nearly $500 per year on tipping at restaurants and bars

The habit runs contrary to economic rationality: Why pay more for a good or service you have already received when it isn’t mandatory? Researchers found that people tip, in part, to avoid the psychological pain of not fitting in.

Does money buy happiness?

Perhaps you've heard of a 2010 study that found more money actually does correlate with an increased level of happiness, but after $75K per year, the happiness level didn't significantly increase. As it turns out, new research has complicated those findings. Listen to this podcast episode for more information.

Fast-food prices have increased more over the past 10 years than both full-service restaurants and inflation

Apparently, according to experts on the subject, rising labor costs are to blame. Fast-food giants like McDonald's are now seeing the consequences in their underwhelming earnings reports.

Effects of pay transparency legislation

Research on pay transparency’s impacts has been limited given the short amount of time since American states began passing pay transparency legislation. However, this early study from researchers out of Brown and Harvard found that increasing pay transparency could have the potential to decrease worker bargaining power, resulting in lower average wages for employees. Read the research here.

Dollar stores can have negative impacts on local businesses

When a household name dollar store like Dollar General opens in a small town or local community, neighborhood businesses often lose out on key sales, driving revenue down and putting them at risk of closure. This has led some experts to argue that dollar store chains can cause economic stress, rather than relieve it.

Raising interest rates can help control inflation

While controlling a complex and dynamic economy is difficult, interest rates—more specifically, the rate at which banks lend each other money overnight—are a powerful tool. Generally, raising the rate makes purchases more expensive and cools an overheated economy.

How long should you stay at your job?

Is it better to stay at a job longer to make sure you look loyal on your resume, or to job-hop for the resulting pay bumps? After all, Federal Reserve data shows that job switchers increase their salary more quickly on average than those who stay put. This video from CNBC aims to help you figure out the answer to the age-old question of "should I stay or should I go?" Watch it here.

One Fair Wage is a national organization advocating for eliminating subminimum wages

Saru Jayaraman has run One Fair Wage since 2020, an offshoot of a 9/11 relief organization for displaced workers and victims’ families she helped start shortly after the attacks. Seventy-three employees of the World Trade Center’s top-floor restaurant were killed on September 11.

Some argue that a massive emergency fund can hurt more than it helps

A financial advisor makes the case for an emergency fund that isn't too overstuffed. An emergency fund that is too large, he argues, can mean that you'll miss other opportunities to grow your wealth.

Hear how the Black Death reshaped Europe's economy

The Black Death killed tens of millions across Europe, but the labor shortages that followed shifted economic power. With fewer workers available, survivors demanded higher wages and better conditions—sparking what historians call a medieval “Golden Age of Labor.”

Would you opt for a life with no pain?

Philosopher Robert Nozick famously posed a question challenging the philosophy of hedonism—the idea that maximizing pleasure is the greatest good in life. His thought experiment imagined people could plug into a machine that would give total pleasure, suggesting the idea itself is not a compelling or desirable one. Learn the arguments and ideas in this short video.

The clearest sign of a recession is a steady increase of job losses and high unemployment

The National Bureau of Economic Research (NBER) looks at six key economic indicators, including industrial production, to determine when the economy is experiencing a recession.

Overwork contributes to thousands of worker deaths

Can work really kill you? The World Health Organization and the International Labor Organization have estimated that long work hours contribute to thousands of death from strokes and heart attacks each year. This BBC article argues that the culture of overwork and burnout is leading to a public health crisis in desperate need of solutions.

The average wealth gap between homeowners and renters was more than $1.3M in 2022

In 2022, the median wealth gap between homeowners and renters was closer to $390K—a significant divide. Over the past three decades or so, the median wealth gap between homeowners and renters increased by 70%, while the average wealth gap increased by more than 250%.

Critical mineral production may lift impoverished regions out of poverty

Mineral wealth can provide public revenue and economic livelihoods to those in mining regions. However, poor management and lack of oversight can cause human rights abuses, environmental degradation, and significant greenhouse gas emissions.

About 2,000 US babies are born annually without some portion of their limbs, potentially leading to a lifetime of pricey prosthetics.

US housing costs have risen by roughly 175% between 1991 and 2026—but a growing number of Gen Zers are becoming homeowners anyway. In 2025, 4% of homebuyers were Gen Z, up from 3% the year before.

Hedge funds, the private investment firms that trade a wide swath of financial assets, make money by imposing steep fees on investors and from the fund's investment performance.

To reduce wrinkles in clothing, research recommends gentle wash cycles with more water and tumble drying with smaller loads and longer times.

The price of gas is a composite made up of several different factors, with the federal gas tax making up less than 20% of what drivers pay at the pump.

Hookworm infection, though risky, may help fight certain autoimmune conditions by tamping down the immune system's inflammatory response.

The US dollar is the most widely circulated currency in the world, and is involved in nearly 90% of global transactions

Use this tool to calculate the dollar value of your parental mental load, from meal planning to coordinating after-school care, then see resources that help generate solutions.

Art theft is the third-largest source of criminal revenues worldwide, thanks in part to the subjective nature of valuing a work of art.

Some renewable energy sources may weaken the resiliency of electric grids by removing outage buffers provided by coal- and natural gas-fired plants, which provide the system with more time to find a new power source if a plant goes down.

Domino's Pizza's 30-minute delivery guarantee was responsible for the chain's 1980s surge, but it was discontinued after the company was found liable for delivery driver accidents.

How Amazon operates a 'flywheel' business model, a self-reinforcing cycle that drives continuous growth

The rivalry between Alexander Hamilton and Thomas Jefferson centered on federalism—the question of how much power the federal government should hold relative to the states.

A Yale student wrote a profound essay about the consulting industry's influence on elite college students that was published in a book of her writing after she died in a post-graduation car accident.

The most expensive ad of all time was for Chanel No. 5 perfume and cost roughly $33M to produce in 2004—about $57M in today's dollars.

See this overview of the firework rules across all 50 states, ranging from a complete ban on non-professional fireworks in Massachusetts to states with more lax rules like Indiana.

Gerrymandering works through two techniques: cracking opposing voters across districts to dilute their power, and packing them into a few to waste their votes in lopsided majorities.

Pure water does not conduct electricity because this flow of energy requires the movement of charged particles, and water is a neutral molecule.

In 2026, Finland was named the world's happiest country for the ninth consecutive year based on its wealth, social safety network, and high life expectancy, among other factors.

The Russia-Ukraine conflict is the largest ground war in Europe since World War II in terms of casualties, forces mobilized, and displacement of civilians.

Legendary architect Frank Lloyd Wright designed the SC Johnson headquarters in Wisconsin, aiming to make a cathedral-like workplace

The first steps to rebuilding your credit score include getting to know exactly what's on your credit report and figuring out how far you are from the '700 club,' or 'good score' range.

Lesser-known phobias include turophobia, or the fear of cheese, and nomophobia, the fear of being without your cell phone.

Famed poet TS Eliot rejected the manuscript for George Orwell's political fable 'Animal Farm,' writing that its criticism of authoritarianism was not 'the right point of view.'

While El Niño moves warm Pacific Ocean waters east along the equator, La Niña moves them west, shifting where rainfall will become more common for months.