Global Perspectives on Minimum Wage Reform: Ethical and Policy Implications of the $17 U.S. Proposal

Abstract

Minimum wage reform remains a central policy instrument for addressing income inequality, poverty reduction, and labor market fairness in both advanced and developing economies. This article examines global perspectives on wage policy through the lens of the proposed U.S. federal minimum wage increase to $17 per hour under the Raise the Wage Act of 2025. Drawing on economic theory, ethical analysis, and international case studies, the study situates the U.S. proposal within broader wage reform trends and evaluates its implications for key stakeholders, including without limitation employers, employees, governments, consumers, and suppliers. Three ethical frameworks: utilitarianism, rights-based ethics, and deontological duty are applied to assess the moral legitimacy of the policy. Empirical evidence from the United States and comparable economies such as Germany, New Zealand, Brazil, and South Africa is synthesized to highlight potential positive outcomes, including poverty reduction, enhanced public health, and wage equity, alongside potential challenges such as employment adjustments, sectoral disparities, and compliance gaps. The analysis concludes that, when paired with phased implementation, regional adjustments, SME support, and robust enforcement, the $17 proposal is both ethically justified and economically viable, aligning with global best practices and advancing the United Nations Sustainable Development Goals on decent work, poverty eradication, and inequality reduction.