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New Analysis: Freezing Maryland’s Minimum Wage Would Harm Essential Workers and the State’s Economy

At a time when low-wage essential workers are being celebrated as heroes as they put their health at risk to support vital community needs, some have suggested that these workers don’t deserve the pay increases already promised in Maryland’s 2019 minimum wage law. Going ahead with scheduled increases in the state’s minimum wage is the best option for supporting workers and helping the state’s economy recover from the current crisis, according to new analysis from the Maryland Center on Economic Policy (MDCEP).

“The coronavirus pandemic has emphasized how much our communities rely on people working in many industries that typically pay low wages,” MDCEP Executive Director Benjamin Orr said. “Walking back already promised increases in the minimum wage would take thousands of dollars out of those workers’ pockets at a time when many are already struggling to afford the basics and cause further harm to our economic recovery.”

The analysis shows that:

  • Freezing the minimum wage would cost a typical low-wage worker more than $7,000 in lost wages by 2025, even as basics like housing and health care continue to become more unaffordable. A proposed—though legally dubious—two-year freeze would cost a typical worker well over $14,000 by 2026.
  •  Freezing the minimum wage would do outsized harm to women and workers of color who are overrepresented in low-wage jobs.
  • Freezing the minimum wage would depress consumer demand and weaken Maryland’s economy for years to come.

“I’ve been close to eviction several times, because when you’re not paid enough, you’re always behind on the bills,” said Michelle Holden, a 32BJ SEIU security officer in downtown Baltimore and a single mother and grandmother helping to support her family of five in West Baltimore. “I’m not even getting essential pay for my essential work risking my life to keep people safe, and if something happens to me, my family would be broken. $15 would help dramatically because I could catch up on bills and afford to eat the right food to help fight my diabetes.”

“The efforts to raise Maryland’s minimum wage did not dissuade us from opening our business in the state. In fact, we chose to open our business specifically in Baltimore so we can bring economic opportunity to the region by creating good paying jobs.” Reynard Parks, Co-Owner of NAVITAS Solar USA, said in 2019 testimony in support of raising the minimum wage. Parks expressed support for continuing the path to $15 at a press conference Thursday.

View the full report at http://www.mdeconomy.org/maintain-minimum-wage/ 

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