Sen. Chris Murphy (D-Conn.) thinks the federal minimum wage has been stuck in 2009 for way too long. On Thursday, he introduced the Living Wage For All Act, a bill that would nearly triple the federal minimum wage from $7.25 to $25 an hour. The idea is to phase it in over time, giving businesses room to adjust.
Under the bill, large corporate employers would need to hit the $25 floor by 2032. Smaller businesses get a longer runway—until 2039. And once we get there, the minimum wage would automatically rise with the economy, tied to two-thirds of the national median wage. So it wouldn't just be a one-time fix; it would keep pace with broader earnings.
Murphy isn't going it alone. The bill is co-sponsored by Sens. Richard Blumenthal (D-CT), Andy Kim (D-N.J.), and Ron Wyden (D-Ore.). In the House, Reps. Delia C. Ramirez (D-Ill.), Analilia Mejia (D-N.J.), Jesus "Chuy" Garcia (D-Ill.), and Lateefah Simon (D-Calif.) introduced companion legislation.
Wage Stagnation Meets Rising Costs
The federal minimum wage has been frozen at $7.25 since 2009. That's 17 years without a raise, while the cost of housing, groceries, and healthcare has gone up sharply. Murphy's office points out that worker productivity has risen about 92% since 1979, but wages have increased by less than 34%. If the minimum wage had kept up with inflation and productivity since 1968, supporters say it would have hit roughly $25 by 2023.
Murphy framed the proposal as a response to a deepening affordability crisis. "If you work full time in this country, you should be able to afford to live," he said.
The push comes as inflation continues to squeeze household budgets. Sen. Elizabeth Warren (D-Mass.) recently cited data showing consumer prices rose 4.2% year over year in May, while wages increased only 3.4%. That means many workers are losing purchasing power even as their paychecks grow in nominal terms.
Some economists argue the U.S. has a structural wage problem, not just an inflation problem. Mihir Torsekar, an economist at the Coalition for a Prosperous America, has said worker pay hasn't kept up with broader economic growth and corporate profitability, leaving many households financially strained even as inflation moderates.
Debate Over Economic Impact
Supporters of the bill say higher wages could reduce poverty, boost consumer spending, and improve employee retention. Murphy's office notes that about 45% of American workers currently earn less than $25 an hour.
Critics, however, warn that aggressive wage hikes could backfire. Berkshire Hathaway Chair Warren Buffett has previously argued that large increases in the minimum wage could reduce hiring, cut worker hours, and raise prices—especially for small businesses and lower-skill jobs.
The bill would also gradually eliminate subminimum wages for tipped workers, workers with disabilities, and youth workers, moving everyone toward the same wage floor.
The proposal has drawn support from major labor and civil rights organizations, including One Fair Wage, the NAACP, the Service Employees International Union, and the National Education Association.
This content was partially produced with the help of AI tools and was reviewed and published by MarketDash editors.
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