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The Fight For 25
Economics
ProphetMargin
ProphetMargin
04/25/25
6 min read

The Fight For 25

In 1938, when the federal minimum wage was established at 25 cents per hour, its purpose was to provide workers with a "minimum standard of living necessary for health, efficiency, and general well-being." Today, that founding principle has been abandoned. While productivity and corporate profits have soared, the federal minimum wage remains frozen at $7.25, unchanged since 2009. The Fight for 15 began over a decade ago as an important movement, but economic reality has outpaced this goal. Nothing less than $25 per hour can now provide American workers with the basic dignity and security originally promised.
For nearly sixteen years, the federal minimum wage has stagnated while the cost of housing, healthcare, education, and basic necessities has skyrocketed. Full-time minimum wage workers cannot afford a one-bedroom apartment in 95% of U.S. counties. Even in places where $15 minimum wages have been implemented, workers struggle because $15 in 2025 simply doesn't buy what it would have in 2012.
The erosion of purchasing power stems from systemic problems. Expansionary monetary policy and significant tax cuts have increased the national debt by trillions. The Federal Reserve's balance sheet expanded dramatically during COVID-19, followed by trillions in stimulus spending. When central banks increase the money supply faster than economic growth, each dollar decreases in value. A single dollar from 1938 would be worth approximately $20.68 today, representing a 95% devaluation. Today's dollar is worth roughly 5 cents compared to the 1938 dollar, yet wages have not kept pace with this transformation.
Housing costs highlight the inadequacy of current wages. Institutional landlords like BlackRock and private equity firms have aggressively purchased single-family homes, converting what was once the primary vehicle for middle-class wealth accumulation into a rental asset class. These corporate landlords maximize profit through neglected maintenance, refused improvements, predatory fee structures, and outmaneuvering individual homebuyers. Because land and housing are limited resources, wealthy investors create a permanent landlord class by buying available stock. In 1970, the median home price was approximately 2.3 times the median annual income. Today, that ratio has nearly doubled to 4.5 nationwide.
A worker earning $15 hourly makes approximately $31,200 annually before taxes. Using the standard affordability metric that housing should cost no more than 30% of income, such a worker can afford $780 monthly for housing. The national median rent for a one-bedroom apartment exceeds $1,400.
American consumers also face financial pressures through tariffs and supply chain disruptions. Recently enacted tariffs are unprecedented in scope and scale, with rates up to 60% on some products. Economic analysts estimate these expanded tariffs cost the average American household an additional $3,500 annually through higher prices on everyday necessities. For minimum wage workers, this additional cost burden requires a corresponding increase in income.
The Big Mac Index illustrates the dollar's declining value. When the federal minimum wage was last increased in 2009, a Big Mac cost approximately $3.57. Today, that same sandwich costs over $6.05, a 69% increase. A minimum wage worker in 2009 could buy two Big Macs per hour with change to spare. Today, that same hour buys just one. If the minimum wage had kept pace with productivity growth since 1968, it would already exceed $24 per hour.
Today's minimum wage workers exist in modern wage slavery. The combination of poverty wages, dependence on public assistance, and employment-tied healthcare creates a coercive system. Walmart exemplifies this problem. Despite generating billions in profits, many Walmart employees rely on food stamps, Medicaid, and housing assistance. American taxpayers effectively subsidize Walmart's labor costs through public assistance to their underpaid workforce.
A corporation should not receive tax breaks while paying wages so low that workers require government assistance. The solution: pay workers enough to live without government assistance. A $25 minimum wage would allow millions to escape this trap while increasing their economic freedom.
Raising the minimum wage to $25 would create significant economic benefits. When workers earn living wages, they spend that money locally, creating a virtuous economic cycle of increased spending and opportunity. Research consistently shows that modest minimum wage increases don't cause significant job losses. Areas with higher minimum wages have seen positive economic outcomes.
If prices increase somewhat due to higher labor costs, this represents a more honest pricing model where consumers pay the true cost of goods and services. More importantly, those price increases would be offset by increased purchasing power. A $25 minimum wage would reduce dependence on public assistance programs, potentially saving billions in tax dollars while improving worker retention and productivity.
Critics claim a $25 minimum wage would devastate small businesses, accelerate automation, and cause inflation. These arguments fail scrutiny. Small businesses already compete for labor in markets where large corporations set wage expectations. A universal minimum wage levels this playing field. Automation continues regardless of wage levels. The benefits of increased efficiency should flow to society as a whole, not just shareholders and executives. Evidence from states and cities with higher minimum wages doesn't support catastrophic predictions about inflation.
What we need is a paradigm shift in how we value human labor. Traditional economic systems treat labor merely as a cost to minimize rather than a foundational component of economic health. A $25 minimum wage represents a return to the original understanding that work should provide economic security and dignity.
Achieving this goal requires coordinated action at multiple levels. Federal legislation remains the most direct approach, but state and local initiatives can build momentum. Consumers have power through their purchasing decisions by supporting businesses that already pay living wages. Evidence suggests fair compensation practices lead to better long-term business outcomes that benefit shareholders. Companies with higher employee satisfaction consistently outperform their peers over time.
The Fight for 25 restores the fundamental promise that work provides a decent life. When minimum wage workers must rely on public assistance despite working full-time, the system is broken. When housing costs consume more than half of income, the system is broken. When inflation erodes purchasing power while wages remain stagnant, the system is broken.
A $25 minimum wage represents an essential step toward an economy that works for everyone. The time for half-measures and incremental changes has passed. We cannot afford another decade of debates over insufficient increases while workers fall further behind. Economic reality demands nothing less than $25 per hour now.