November 25, 2014
Is minimum wage a living wage? Raising the minimum wage would put the money in the hands of the engine that powers the economy; this allows local businesses to thrive and lets people live comfortably above the poverty line. Minimum wage is defined as the lowest wage permitted by law or by a special agreement while a living wage is defined as a wage that is high enough to maintain a normal standard of living. These two definitions are the center of an argument that is thriving throughout the United States. A living wage concept began when the minimum wage put a worker below the poverty line. A living wage allows an individual to live a comfortable daily life while a minimum wage puts …show more content…
This will make it easier for others who need jobs to find them. Working families would have more time for community life and their life will be much less stressful. Americans would start to reclaim the middle-class by having more money readily at hand. This money will allow them to buy products on a daily basis that they may not have before and this is beneficial for the economy because the money will be recirculate into the local financial districts.
Another primary reason that raising minimum wage is good is that raising it is good for the economic recovery and the shift will get the economy back on track, spending power has to be in the hands and readily available of those who actually spend in the local economies. Since the top one percent tend to hold onto the wealth or invest in certain financial products the money would be more useful in the hands of minimum wage families and local economies.. If the productivity of each worker is rising strongly and the worker’s ability to purchase is not equal to their working capacity then the working class will struggle. This system of economics is very …show more content…
This time period has also been associated with a dramatic decline in the performance of the US economy. To raise the minimum wage would be a significant benefactor for those who have suffered from the economic decline. Consumer spending and consumption is the constant engine that powers the domestic economy, comprising 70 percent of gross domestic product. (michael). Restoring the consumer demand is an essential key for stabilizing the economy and allowing local businesses to expand and eventually create jobs. Although to many minimum wage seems like an absurd idea. There are many people who think raising the minimum wage is not beneficial because it will increase inflation and trigger another recession, the argument of raising minimum wage is not only a economic discussion but a political fight as well. Unlike higher earners who can afford to save some of their income, working families spend the money they earn on necessities at local businesses, which immediately re-circles the money back through the economy. Raising the minimum wage is a key strategy for increasing consumer spending, and simply one of the only ways to do so that doesn’t harm state or federal budget deficits. As a result, the Economic Policy Institute estimates that the modest increase in the federal minimum wage in July 2009 generated $5.5 billion in consumer