Minimum Wage, Tipping, and Economic Justice video week 1

The federal government allows a tipped minimum wage of $2.13$ per hour if workers’ tips bring them to the full minimum wage; effectively, a base wage of $2.13$ with tips topping up to the required minimum.
The speaker uses relatable costs to illustrate how $2.13$ is insufficient (e.g., "you can't even get on a bus in New York City for that").
The topic sits at the intersection of minimum wage policy, tipping practices, and economic justice.

In 1938, the New Deal era established the federal minimum wage framework for the first time.
Millions of Black workers, farm workers, domestic workers, and tipped restaurant workers were excluded from the standard; tipped workers were told to rely on tips to bring them up to the full minimum wage.
The tipping arrangement effectively meant: you get a $0 wage from your employer as long as tips bring you to the full minimum wage amount.
Over time, this tipped minimum wage for restaurant workers rose from $0 to $2.13$ per hour (the current standard), a change described as occurring over generations.
The shift and persistence of the tipped wage is attributed in part to lobbying power, notably by the National Restaurant Association (NRA).
Nota bene: the NRA mentioned here is a trade lobby representing restaurants (e.g., IHOP, Applebee’s, Olive Garden) and is not to be confused with the gun-rights NRA.

Public opinion: when asked if tipped workers should receive a full minimum wage regardless of tipping, the public broadly says yes.
The research and political debate emphasize a tension: the willingness to maintain a $2.13 base wage is framed as necessary to keep costs down for businesses, but this stance is linked to lobbying influence and campaign contributions from the restaurant industry.
Speaker characterizes opposition to raising the tipped wage as driven by greed, money, and power, highlighting the role of industry lobbyists in shaping policy.
The discussion situates current fights within the broader political context: Democrats (e.g., Bernie Sanders) advocating for a $15 minimum wage, and debates about whether such a policy would cost jobs.
The COVID-19 relief package referenced is the ${1.9} \times 10^{12}$ relief bill; it was introduced with the idea of a $15$ minimum wage and the elimination of the subminimum wage for tipped workers, but the proposal was blocked in the Senate, with critics arguing that it would cost jobs.
The speaker contends that these policy motions were thwarted in partisan fashion, contributing to ongoing disparities in pay for tipped workers.

Demographic snapshot:
- tipped workers are $41\%$ people of color.
- women constitute $66\%$ of tipped workers.
- $37\%$ are mothers.
Three factors drive pay inequities across race and gender:
1) Women and people of color are overrepresented in casual/diner-tier establishments, which correlates with lower base pay.
2) Black and brown workers who reach fine dining/upscale venues are more likely to work in back-of-house roles due to racism, affecting tipping dynamics and perceived value of labor.
3) Black workers receive less in tips than white workers, reflecting racialized tipping patterns.
A cited statistic from a source called One Fair Wage (as referenced) notes disparities for Black women in specific states: in New York and Massachusetts, Black women earn approximately $7.74$ and $7.79$ less per hour than white workers, respectively.
The inequality is described as systemic, rooted in public policy and labor market structure, rather than just individual attitudes.

Reverend Dr. William J. Barber II, national co-chair of the Poor People’s Campaign, has long fought for economic justice and equality.
Barber frames racism as broader than individual prejudice or violence; it includes public policy that blocks access to health care and contributes to death during crises (e.g., pandemics affect the poor and low-wealth populations first and most severely).
Barber co-authored an op-ed addressing Vice President Harris, urging action in a time of national challenges and time-sensitive decisions; the piece argues that racism in policy harms humanity and that leadership should address these structural inequalities.
The Georgia voting-related events are cited as a reminder that racism in policy can manifest in harmful, systemic ways beyond overt acts of discrimination.
The COVID-19 pandemic is used to illustrate how economic injustice translates into health disparities: the majority of early deaths occurred among the poor and low-wealth populations who had to work in person and were exposed first.

The current framework places tipped workers at a precarious baseline, relying on tips to reach a livable wage while facing economic volatility and rising costs of living.
If tipped wages were elevated toward a full minimum wage without adjusting other factors (e.g., menu prices, hours, or tipping culture), there is a debate about potential job losses or business adjustments; studies cited by opponents suggest job losses, while proponents argue wage justice and consumer benefits offset these concerns.
The ethical argument emphasizes that paying a sub-minimum wage to a specific group of workers based on occupation and historical policy choices perpetuates inequality and reinforces systemic racism.

The tipped minimum wage in the U.S. remains a contentious policy instrument, rooted in historical exclusions and reinforced by lobbying power.
There is broad public support for paying tipped workers a full minimum wage regardless of tipping, highlighting a gap between public sentiment and policy.
Racial and gender disparities in tipping are persistent, shaped by job segregation, racism in the hospitality industry, and differences in tipping receipts.
Activists, scholars, and faith-based groups argue that true economic justice requires addressing structural racism in policy, health access, and labor standards.
The central questions moving forward include: should the federal tipped minimum wage be eliminated or raised to the standard minimum wage? how will policy changes impact employment, consumer costs, and restaurant business models? what safeguards ensure workers do not bear more risk when wages are adjusted?

Race, class and Gender Still Matter

- intersectionality - overlapping and simultaneous influence of race, class, gender as systems of inequality that shake every dimension of all peoples experience in society
- race class and gender operate together
xenophobia - against immigrant who are fleeing violence and political oppression in their countries of origin or looking for better opportunities
euphemism - something that means everything but nothing
“Our social location in this system of power shapes what we know, think, what others know about use and possibly what we think of ourselves.” (page 2)
intersectional thinking changes how we understand those who are on different sides of the system of power and privilege
knowledge is also not just about content and information; it provides and orientation of the world
Taking an intersectional view of social issues fosters more effective public policy
race, class, and gender are intersecting categories of experience that affects all aspects of human life; simultaneously structure the experiences of all people in this society
a matrix domination sees social structure as having multiple, interlocking levels of dominations that stem form societal configuration of race, class, and gender relations