Quick summary
• Scott Bessent, Trump’s Treasury Secretary nominee, stated he opposes raising the federal minimum wage, which has been $7.25 an hour since 2009.
• Bessent argued the minimum wage should be a “statewide and regional issue,” rejecting Senator Bernie Sanders’ call for a $15 federal minimum wage.
• A full-time worker earning $7.25 annually makes $15,080, far below the poverty line for families.
• Critics, including the Democratic National Committee and watchdog groups, accuse Bessent of prioritizing billionaires over working families.
• Bessent supports Trump’s 2017 tax cuts, which disproportionately benefited the wealthiest Americans, while his “3-3-3 plan” could lead to cuts in anti-poverty programs.
• President-elect Trump has expressed hesitancy about raising the minimum wage too high, citing regional cost-of-living differences.
• Advocates argue a higher federal wage is essential to lift millions out of poverty and address income inequality nationwide.
Scott Bessent, a hedge fund manager and President-elect Donald Trump’s nominee for Treasury Secretary, faced sharp criticism during his Senate Finance Committee confirmation hearing after stating he does not support raising the federal minimum wage, which has remained at $7.25 an hour since 2009.
“I believe that the minimum wage is more of a statewide and regional issue,” Bessent said during his hearing. Pressed by Senator Bernie Sanders (I-Vt.) on whether he would support increasing the wage floor, Bessent responded simply, “No, sir.”
The federal minimum wage of $7.25 translates to an annual income of just $15,080 for a full-time worker, far below the poverty line for families. Advocates for wage reform argue this figure reflects a systemic failure to ensure livable wages, while opponents claim raising it could harm businesses and vary in its necessity depending on regional cost-of-living differences.
The stagnant federal minimum wage affects millions of Americans. According to a 2022 report from the U.S. Bureau of Labor Statistics, approximately 30 million workers earned less than $15 per hour, making up more than a quarter of the workforce. An additional 33.8 million earned between $15 and $19.99 per hour, highlighting the financial precarity faced by a significant portion of the U.S. labor force.
While some states and cities have raised their minimum wages—such as Washington, D.C., where it stands at $16.10—workers in other areas, particularly in southern states like Mississippi and Alabama, still earn the federal minimum. Despite these regional differences, many argue a federal standard is necessary to reduce economic inequality and ensure basic living standards.
Bessent’s comments have drawn ire from labor advocates and progressive organizations. Alex Floyd, rapid response director at the Democratic National Committee, stated, “Donald Trump and Scott Bessent will give tax handouts to billionaires but oppose raising wages for the poorest Americans. Trump and his billionaire Cabinet have their priorities backwards. Instead of focusing on lower costs and higher wages, they’re only trying to line their own pockets while breaking promises to working families.”
The government watchdog Accountable.US echoed these sentiments, condemning Bessent’s defense of Trump-era tax cuts, which disproportionately benefited the wealthy. “Scott Bessent’s nomination isn’t about helping American families,” the group stated. “It’s about lining the pockets of the ultra-wealthy and doubling down on policies that hurt the middle class.”
Bessent has championed an economic strategy he calls the “3-3-3 plan,” which aims to:
1. Reduce the federal budget deficit to 3% of GDP.
2. Achieve 3 percent GDP growth.
3. Increase oil production by 3 million barrels per day by 2028.
Critics argue that achieving these goals would require deep cuts to anti-poverty programs, potentially exacerbating financial hardship for low-income families. Additionally, Bessent’s support for extending Trump’s 2017 tax cuts, which overwhelmingly favored the wealthiest Americans, further signals a prioritization of corporate interests over working-class needs.
President-elect Trump has expressed a cautious stance on raising the federal minimum wage. In a December interview with Meet the Press, he said he would “consider” an increase but warned against raising it too high, claiming it could hurt businesses. “The other thing that is very complicated about minimum wage is places are so different,” he explained, referencing disparities in cost of living between states like Mississippi and New York.
The debate over raising the federal minimum wage reflects larger questions about economic inequality and the role of government in addressing it. Advocates for a $15 minimum wage emphasize its potential to:
• Lift millions out of poverty.
• Narrow the wealth gap.
• Stimulate consumer spending by putting more money in workers’ pockets.
However, opponents argue that significant wage increases could lead to job losses and higher costs for small businesses, particularly in lower-cost areas. This tension underscores the complexities of setting a federal standard in a diverse economy.
See how National Employment Law Project is fighting to raise the wage floor so it reaches a true living wage for all.
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