International Finance Org Urges America To Raise Minimum Wage, Already

Joshua Rosenblat

The International Monetary Fund (IMF) published its yearly review of the U.S. economy on Monday. Among its findings, the organization openly supported raising the minimum wage above the federal minimum of $7.25 per hour—marking the first time the IMF has ever done so.  Though it praised the expansion of American healthcare, the report noted that raising the wage would go towards narrowing the United States' vast income gap. The report stated: Given its current low level (compared both to U.S. history and international standards), the minimum wage should be increased. This would help raise incomes for millions of working poor and would have strong complementarities with the suggested improvements in the [Earned Income Tax Credit (EITC)], working in tandem to ensure a meaningful increase in after-tax earnings for the nation’s poorest households. To complement the increase in minimum wage, the IMF suggested that an expansion of the EITC "to apply to households without children, to older workers, and to low income youth" could also help some of the 50 million Americans living in poverty better their situation.  Though President Obama has urged Congress to raise the federal minimum wage to $9, his efforts have thus far been thwarted by opposition in both chambers. 

Please consider supporting our work.

I hope you found this article important. Before you leave, I want to ask you to consider supporting our work with a donation. In These Times needs readers like you to help sustain our mission. We don’t depend on—or want—corporate advertising or deep-pocketed billionaires to fund our journalism. We’re supported by you, the reader, so we can focus on covering the issues that matter most to the progressive movement without fear or compromise.

Our work isn’t hidden behind a paywall because of people like you who support our journalism. We want to keep it that way. If you value the work we do and the movements we cover, please consider donating to In These Times.

Joshua Rosenblat is a Summer 2014 In These Times intern.
Illustrated cover of Gaza issue. Illustration shows an illustrated representation of Gaza, sohwing crowded buildings surrounded by a wall on three sides. Above the buildings is the sun, with light shining down. Above the sun is a white bird. Text below the city says: All Eyes on Gaza
Get 10 issues for $19.95

Subscribe to the print magazine.