The Minimum Wage in the 2nd 2020 Presidential Debate

     Throughout our nation’s history, the minimum wage has been a prominent topic. Recently, it has become an even greater focus of many politicians and political candidates. Notable Democrats like Bernie Sanders, Joseph Biden, and most of the DNC candidates of the 2020 Presidential Campaign have made it a key issue of their platform. Republicans like President Donald Trump typically adopt a more conservative fiscal method which does not opt for a minimum wage, especially not the Democrat’s common desire for a $15 federal minimum. One instance of this issue coming up recently was in the 2^nd Presidential Debate between Trump and Biden. They both made some comments regarding the issue and their arguments are another verbal discourse which has likely intrigued economic thought in many Americans. Those on the fence constantly hear arguments from both sides pushing for a greater minimum wage and some opposing it wholeheartedly, but the arguments made in this debate included some compelling concepts.
            During the 2^nd debate, Trump and Biden were asked for comment on the issue of the minimum wage. The question was centered around the tough times that many small businesses have been forced to endure recently, while many of them are losing business and cannot afford to continue operating. Biden argued once again in favor of his $15 minimum wage believing it to be necessary and he supported this by mentioning the necessity for a government bailout of these businesses. Biden supports the act of providing government funds to support small businesses in the midst of a pandemic. He believes this sentiment to be an argument for the same necessity of raising the minimum wage to support those workers who have also fallen on hard times this year. Trump rebutted this by arguing for a state option. He also mentioned that the minimum wage is not a viable solution coming from an economically informed perspective. He sees it as a burden for small business, they cannot afford to pay workers more, and these businesses will continue to suffer while workers are not able to be hired with the larger wages. Trump did not necessarily condemn a minimum wage entirely, saying he may support it to an extent, but he did argue against his opponent’s push for a federal law.

    A critical piece of Trump’s argument is his desire for a state option, this alludes to the police powers of the states. The Constitution’s 10^th Amendment may leave this power to them as it is not explicitly granted to the federal government. This view is on par with the Constitution as well as the writings of James Buchanan. Trump mentioned that “Alabama is different from New York. New York is different from Vermont. Every state is different, it should be a state option.” Buchanan wrote in his book Federalism, Liberty, and the Law, that in a federal system of government, the power is divided between the national government and that of the states. This is a desirable outcome because it increases the power of exit for individuals and increases the accountability of government, and it mitigates a monopoly on force and spreads power evenly, lowering the potential for harmful coercion. Considering basic economics, the minimum wage may be, in every case even, a disaster. Considering the principles of economic freedom, especially those provided by Buchanan and our Constitution, it would be a major improvement to allow our smaller political districts (states, cities) to decide on the issue of the minimum wage. This would at least allow for more localized, smaller governments to make a decision of extreme importance for their people whereas a federal mandate may have positive outcomes in certain regions and negatives elsewhere.