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Fortune
Fortune
John Driscoll

How the Democratic Party lost American workers: It’s the minimum wage, stupid

(Credit: Jamie Squire - Getty Images)

The election results are a wake-up call for Democrats. This election wasn’t a fluke, it was a repudiation of a Democratic Party that many Americans clearly feel does not represent their interests. To return from the wilderness, Democrats need to reassess who they are and what they stand for. There will inevitably be calls for Democrats to pivot to the right after this election. However, exit polls indicate there’s a progressive position they should double down on: raising the minimum wage.

In exit polls, almost two-thirds of voters rated the economy as “not so good/poor,” and 69% of those who said the economy was bad voted for Donald Trump. In 2020, Biden won people making less than $50,000 by 10 points. This year, Trump didn’t just shrink that lead, he outright won the demographic by a point, 49%-48%. That’s the election.

While a disaster for Democrats, those numbers don’t signal a rejection of progressive policies per se. For proof, just look at Missouri, where 57.6% of voters supported a ballot measure to increase the state’s minimum wage to $15, while 58.5% voted for Donald Trump. The results from Missouri aren’t anomalous. When voters had the choice, the minimum wage has won  nearly every single time in the last 20 years, even in red states like Nebraska and Florida. Voters like clear, high impact progressive policies that matter to them, but they don’t believe that Democrats can deliver. Earning back that trust, not swinging to the right, should be the party’s focus.

Harris supported raising the federal minimum wage from the beginning of her campaign but it was lost in the blizzard of her many policy proposals. She only directly addressed the issue, promising to raise it to at least $15 an hour and decrying the current $7.25 an hour minimum wage as “poverty wages,” with only two weeks left to go in the campaign. It was on her agenda, but never the centerpiece. Instead, she ran on a continuation of the Biden economy, which looks strong. GDP is growing. Unemployment is low. Inflation has slowed, and the stock market is at all-time highs. But many Americans don’t feel it, and still struggle to pay their bills. Despite positive economic news, the lived experience of many Americans, especially in the wake of extreme inflation, is anything but positive. When 40% of working Americans still make less than the basic cost of living, reminding them that the economy is doing well doesn’t just ring hollow, it feels insulting. 

Donald Trump’s economic policies are clearly not targeted at improving conditions for low-wage workers. But many of those workers fear the same about the Democrats. And they violently agree with Trump’s complaint that the current economy is not working. The sad truth is that many workers have no confidence that Democrats are willing or able to deliver for them. They have so little faith in Democrats that they chose to side with the billionaire, who passed historic tax cuts for himself and other billionaires, over the alternative.

There’s an enormous number of people in America who have worked in low-wage jobs for decades and have heard Democrats claim that they’re fighting for working people. Over time, as they work harder and earn less, why wouldn’t they think that Democrats are either incompetent or misleading? Many remember that Democrats offered them promises, while Trump gave them a check with his name on it.

It may be a long time before the Democrats control the federal government, and when they do, they need to continue to pass complex bills like the CHIPS Act and the Inflation Reduction Act that grow the economy long term. That's clearly not enough to win elections. The Democratic Party must do what it’s terrible at: playing politics by delivering on policies that matter to the voters they need. Their priorities need to shift to simple, tangible policies that voters feel improve their lives. Draw a distinct line between the Democratic and Republican parties by making it clear that the Democrats’ priority is ordinary people, not wealthy donors or corporations. Focus on the minimum wage. 

Democratic legislators need to prioritize it on a state and local level. Biden should use an executive order in the time he has left in office to raise the minimum wage for federal employees and federal contractors to $20 an hour. And every Democrat should make higher wages a central talking point of the next two years. Go on radio shows, tv shows, and podcasts and ask why Donald Trump refuses to raise the minimum wage. If Democrats inextricably tie the party’s identity with the issue of raising the minimum wage, they will have a much better shot in 2026.

There’s no way of knowing what is in store for the minimum wage over the next several years. Republicans might ignore it as they generally have. Some Republicans might decide it’s worthwhile to pass a nominal, meaningless increase, while others might even push to repeal it altogether. We’re in uncharted territory. But one thing we know is that no Democrat has ever suffered politically for being too pro-worker. Raising the minimum wage is a winning issue, and for Democrats whose main weakness continues to be the economy, it’s an issue that they need to make a central priority. 

More must-read commentary published by Fortune:

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

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