Voters in Nebraska, Nevada, and Washington DC took to the polls to raise minimum wages. Nebraska will raise their minimum wage from its current rate of $9 per hour to $15 per hour by 2026. Nevada will raise its minimum wage to $12 per hour, and Washington DC will raise the minimum wage for tipped employees from $5.35 to $16.10 per hour. Twenty-six other states have increased their minimum wage in 2022 as well, with several now tying the minimum wage to the inflation rate. Twenty states currently pay the Federal minimum wage of $7.25 per hour. This minimum wage went into effect in 2009 and has not been increased since.

In South Dakota, voters followed in the footsteps of six other states and voted to expand Medicaid coverage to low-income households. This expansion will bring over $300 million to the state and expand coverage to childless adults and raise the income threshold. Many of the recent ballot initiatives come after resolutions failed in state legislatures. Many state representatives opposed the Medicaid expansion because of the additional costs the state would bear. However, the ballot initiatives allow voters to go around their representatives by directly voting for higher wages and expanded Medicaid.

Discussion Questions:

1. Which state and/or city has the highest minimum wage in the US?

2. Discuss the pros and cons of setting a minimum wage locally rather than at the national level.

3. What are some expected short- and long-run impacts of raising the minimum wage?

4. What are the conclusion of this case.