Mark Cuban advocates raising minimum wage to $20 amid rising cost of living, ‘That’s embarrassing to me…’
As artificial intelligence quickly becomes a standard tool for businesses aiming to increase profits and minimize expenses, employees’ concerns are justified.
A study by McKinsey and Company revealed in 2024 that 78% of organizations incorporate artificial intelligence into at least one aspect of their operations. There are reasons to question whether this technology will increase the value of workers’ skills or make them obsolete.
Cuba calls for higher wages, highlights role of artificial intelligence in creating jobs
billionaire entrepreneur Mark Cuban Strongly advocate the former view. Rather than seeing AI as a replacement for human labor, he compared it to breakthrough innovations like personal computers and the internet. He believes that the most successful people will be those who seize the opportunity to learn how to effectively use artificial intelligence to work more efficiently and provide greater value.
Cuban said in a post on X that raising hourly wages is a necessary advance but has been delayed for too long.
Meanwhile, workers in some U.S. states earn as little as $5.15 an hour as they toil away clearing tables, restocking store shelves and cooking burgers.
Even as several companies report unprecedented profits and achieve market valuations in the trillions of dollars, millions of Americans living below the poverty line still wonder whether they will be able to share in this prosperity.
“I’ve said before that I think raising the federal minimum wage to $20 is a smart move,” Cuban posted on X last month.
Federal minimum wage should be raised from $7.25 to $20 an hour
The current federal minimum wage is $7.25 an hour. Based on a typical 40-hour work week, this equates to an annual income of $15,080, well less than one-third of the average U.S. wage (about $60,000 per year). As the cost of living continues to rise, more than 40 million Americans are forced to rely on food stamps to survive.
The Shark Tank investor says it’s shameful not to provide workers with a living wage; he’s committed to attracting talent and creating new wealth opportunities.
“When I hear that people who work at companies I invest in (but don’t run) need government assistance, I make sure they all get a raise,” Cuban continued in the social media post. “It embarrasses me that we don’t pay enough. I have created or helped create at least a thousand millionaires. I will continue to work hard to increase that number.”
Cuban has advocated for increased employee wages and wealth accumulation as part of his comprehensive approach to addressing issues related to the wealth of billionaire founders, income taxes and “eat the rich” rhetoric. The entrepreneur, who has a net worth of $6 billion, believes founders take considerable risks when starting businesses that then create jobs for others as they build wealth. While he rejected anti-wealth sentiment, he emphasized the need to improve the financial situation of ordinary workers.
“I believe in the trickle-down effect,” Cuban said. “As long as we do our best, we can put significant assets and higher wages into the hands of people who are living paycheck to paycheck.”
A small business just starting out may lack the means to provide a million-dollar payroll. However, once they are established, Cuban claims they should provide a living wage.
