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minimum wage

Photo by Melissa Walker Horn on Unsplash, @BrettKlein/Twitter

Australia's minimum wage is an example for us all.

How great is Australia? A relaxed cultural vibe that is progressive, inclusive and seems like a literal day at the beach. They even give us some of our favorite Marvel superhero film actors. Must be tough to make a buck there though, right? Actually, they've got a significant edge on us there as well. Take a look at Australian's minimum wage and how much further it goes for the average worker than for your typical hard-working American.

Australian unions are currently pushing for a 5% increase to the minimum wage to counter inflation. Australia's minimum wage is 20.33 Australian dollars per hour, which is the equivalent of $15.23 (as of the writing of this article).

Meanwhile, Americans are still sitting on the same federal minimum wage we've had since 2009—a whopping $7.25 an hour—while we are also dealing with inflation.

Minimum wage by U.S. state varies—a lot—from $7.25 to $15.90. And most states have different minimum wages for tipped jobs such as wait staff in a restaurant, on the assumption that you'll earn enough tips to make up the base wage. Though employers can choose to pay above the minimum, they aren't required to. And the minimum tipped wage in 17 states is $2.13 per hour.

Let me repeat that. In 17 states in the United States of America in 2022, the tipped minimum wage is $2.13 per hour.

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via Fit Chef Catering

The minimum wage has been one of the most hotly debated political issues in the country over the past decade. Those that are against raising the wage claim it will lead to unemployment and business closures.

Supporters of an increase in the minimum wage believe that it will not only benefit workers but help small businesses by increasing consumer spending, spurring productivity, and lowering workplace turnover.

Business owners tend to be against raising the minimum wage because it raises the cost of doing business. However, a small business owner and chef in central Mississippi raised the minimum wage at his company and things couldn't have gone better.

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via Mike Mozart / Flickr

The Biden administration was prevented from inserting a $15 per-hour federal minimum wage in its $1.9 trillion coronavirus relief package in February due to a ruling by the Senate parliamentarian. It was the closest the federal government has come to raising the minimum wage to a level that activists have been fighting for over the past decade.

However, an unusual set of circumstances have aligned that could push the private sector into creating a de facto $15 minimum wage without any government mandate.

The restaurant business was shaken on Monday when Chipotle announced it was raising its current average wage of $13 an hour by another two dollars, bringing it to around $15. The change should be in full effect by June.

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In 2015, Gravity Payments CEO Dan Price had a life-changing epiphany.

Price, who founded Gravity with his brother in 2004, was out hiking in the Cascade Mountains with his friend, Valerie. She told him her landlord had raised her rent by $200 and she was struggling to get by on her $40,000 a year income. Price, who was making $1.1 million a year as CEO of Gravity, was struck by her story. Not only did he feel for Valerie—a military veteran working two jobs and barely making ends meet—realized that some of his own employees might be facing similar struggles.

And they were. One employee frankly told him his entry-level salary was a rip-off. Another employee had secretly been working at McDonald's outside of work hours to make ends meet. So Price decided to make a drastic change by investing in his employees.

He researched how much money the average person would need in order to live comfortably and settled on $70,000 a year. In one fell swoop, he dropped his own salary to that amount, while also making it the minimum salary for anyone who worked at Gravity.

The move drew media coverage—and dire predictions from pundits. On Fox News and other conservative outlets he was called "foolish," a "socialist" and a "lunatic of lunatics." Rush Limbaugh called the company policy "pure unadulterated socialism" that was "going to fail" and should be a case study in MBA programs on how socialism doesn't work. Talking heads predicted that his employees would end up in the welfare line.

Six years later, Price has proved the haters wrong—by a lot.

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