The year was 1979, I was a college freshman trying to pay my way through college at Morgan State University, in Baltimore, Maryland. I worked as a dishwasher/busboy and then security guard. I was happy to earn the minimum wage of $2.90. Heck, I was just happy to have a job! There was a $.05 cent premium for working the midnight shift, so I preferred to work that shift, and it allowed for more studying while I worked, unless there was a break-in, which happened more often than (not always while I was studying).

Today there are some workers in our economy who simply earn the minimum wage. In economic terms, the minimum wage is an example of a “price floor,” a price (wage) below which the employer could not go by law, so it led to a surplus of workers (more unemployment). If it were not for the minimum wage legislation, many employers (buyers or demanders of labor) would pay wages below that and be able to employ more workers (suppliers of labor), and there would be less unemployment, but there probably would be more exploitation of those workers as they were being paid less than they are worth.

The federal minimum wage was first established by the Fair Labor Standards Act of 1938 during the Great Depression as part of the New Deal. It first started at 25 cents an hour (equivalent to $5.40 in 2023, using the usinflationcalculator.com). In 2009, the federal minimum wage was increased to $7.25 ($10.30 in 2023) an hour and has remained the same since then. It is important to note that different states and some municipalities have different minimum wages, which tend to be higher than the federal.

In Michigan, the minimum wage was recently raised from $10.10 to $10.33, and employers are obligated to pay at least that to employees; so, in Michigan, at least, the minimum wage is keeping up with inflation. The minimum wage also varies for those workers who receive tips, but their hourly pay must add up to at least that minimum wage, at the end of the day. In 2022, 30 states and the District of Columbia have wage rates higher than the federal minimum wage, as do a large number of municipalities. It ranges from $7.25 in several states to $16.50 in Washington, D.C.; ironically, where the federal legislators enact the minimum wage laws.

When the minimum wage was first enacted, some say it was to protect “unskilled workers,” that is those who worked jobs that even a 5-year-old could do. Essentially, since these workers did not require specialized training or education, they could be exploited by employers and the market. Indeed.com defines unskilled labor as work that does not require a certain set of skills or formal education. Examples provided include cashiers, grocery clerks and cleaners. Really?! In this day and age, I cannot really think of labor that is truly unskilled. There are skills required to be a cleaner or (cashier — been there done that — your shift end tally better not be over or under!). I am racking my brain and cannot think of any truly unskilled laborers. Even bagging groceries requires some minimum skills (to avoid cracked eggs or mashed bananas). A 5-year-old cannot do any of these jobs truly effectively.

Every worker in our economy deserves a decent wage as they do their part to support our economy. For any employee working full-time, today’s minimum wage is not a living wage anywhere in the United States. A living wage is the minimum wage for a worker to meet their basic needs and stay above poverty. The living wage calculation for a single adult, no children, in Michigan was $16.27 in 2022, compared with the minimum wage of $10.10.

Any change in the minimum wage will have some impact on wages and subsequently prices and employment. As a former minimum wage earner, I appreciate that the law exists, however, in many instances, these workers, who are necessarily a crucial part our economy and tend to be more skilled, especially with the advent of more technology, deserve better. In order to make a living, many end up working multiple jobs and many more hours, hoping for that time-and-a-half to approach a living wage. For all the minimum wage workers out there, I strongly suggest more education and upskilling. It made a difference for me.

— Kojo Quartey, Ph.D., is president of Monroe County Community College and an economist. He may be reached at kquartey@monroeccc.edu.

This article originally appeared on The Holland Sentinel: Kojo Quartey: The minimum wage is not a living wage