Michigan’s minimum wage is now $10.33: Why minimum wages in the US are insultingly low and the failure of partisan politics

On January 1st of this year, the minimum wage in Michigan went from $10.10 and hour to $10.33 an hour. Imagine trying to live off of this insultingly-low of a wage.

For those who are 16 or 17 in Michigan, the minimum wage is worse, landing at $8.78 an hour. For tipped wage earners, their hourly wage in $3.93 an hour, adding new meaning to the term exploitation. 

The fact is that individuals and families who are paying for rent, utilities, transportation and food, cannot live off of the minimum wage in Michigan. Actually, most people can’t live off $15 an hour. And, according to the Low Income Housing Coalition, for people living in the Grand Rapids/Wyoming area, they need to earn $25.50 an hour to afford the average cost of rent in this market. 

The above data helps us to properly put the housing crisis into perspective. While groups like the Grand Rapids Chamber of Commerce created Housing Next like to frame the housing crisis around zoning or supply and demand, the fact is that the income of most working class individuals and families is completely inadequate to afford most rental costs and the capacity to purchase a home. 

What is needed in Michigan is not just more housing units, but for people to be able to earn a living wage. In addition, we need to remove housing from the free market and move towards social housing. This is one of the components of what the Rent is Too Damn High Coalition was proposing last fall, when tenants and other groups came together to make demands of state policy makers. And while Michigan Democrats were in control of state government, they fundamentally ignored these demands (listed below, with more details in this link) by not even holding a single hearing on the housing crisis last fall.

• Rent Control – Remove the state-wide ban on rent control so municipalities can take action to stabilize rents and protect tenants. 
• Social Housing – $4 billion for social housing in FY25 state budget. 
• Housing First – $1 billion for people experiencing and at risk of homelessness in FY25 state budget. 
• A Renter’s Bill of Rights – Renters around the country are insisting on more protections against landlord abuse and empowerment of renters as a class

In 2024, Michigan Democrats are not likely to embrace the list of demands from the Rent is Too Damn High Coalition, in part because this is an election year, along with the fact that the Democrats no longer control a majority of the State House. 

What the Rent is Too Damn High Coalition is proposing for 2024 is to keep pressuring the State Legislature to meet these four demands, while simultaneously hosting Tenant Assemblies across the state, with one scheduled in April right here in Grand Rapids. Right now there is an interest in building tenant power in order to achieve housing justice, especially without relying exclusively on partisan politics. 

In addition, Michigan might benefit from having a state ballot initiative to dramatically raise the minimum wage. People in other states are realizing the importance of such campaigns, since partisan politics has utterly failed the public around wage increases. For nearly twenty years there has been a push to make $15 an hour the new minimum wage. However, while $15 an hour might have worked in 2000, in 2024, $15 an hour is grossly inadequate.

Right now there are currently 22 campaigns across the US to raise the minimum wage. Communities in Michigan should seriously consider such a campaign in this state, not only because of the effectiveness of the Abortion Rights ballot initiative in 2022, but primarily because most people would embrace having a livable wage and a minimum wage of no less than $25.00 an hour.

When the Democrats took control of the Michigan Legislature in 2022, they talked a great deal about wanting to put more money in the pockets of working class residents. However, for Democrats that meant adopting minor reformist economic policies, which have had little impact to create economic security for the majority of Michiganders. A $25 minimum wage ballot campaign would actually put more money into the pockets of working class people in this state and is something for organizers to seriously consider in 2025, since the minimum wage in Michigan will only be a measly $10.56 an hour. People deserve better.