Raising Minimum Wage Increase

Improved Essays
With all the aforementioned, raising the wage would not only help the economy grow but, would also give everyone the feeling of economic security and confidence. While this sounds like a random factor, confidences in the economy will have a ripple effect and stimulates spending, lowers interest rates by making it easier for people to access loans and receive credit, boosts performance and returns in the financial market and encourages investments. There are no easy solutions, but there are remedies that have as their goal, honoring the dignity of labor—no matter who is doing the work. (Thompson 290).
Presented at the State of the Union address, in 2015, President Barack Obama states, “Of course, nothing helps families make ends meet like
…show more content…
While trying to improve overall economic growth and security it is still a concern that minimum wage barely provides a living, actually this proves that workers are underpaid by their employers. Minimum wage is seen as a base number from which wages are calculated, so if the number is raised, earnings will increase as a result. Many workers who earn more than the minimum wage would benefit if it is increased. Raising the wage will have a positive effect above and beyond lowering the poverty rate. A good way to fight poverty is to make sure people have jobs with a decent wage that put them above the poverty level. This will ensure that its value stays at a reasonable level over time through indexing it to the cost of living and establishing a strong first step to economic security. The Fair Minimum Wage Act of 2013 sets the minimum wage at a level that will help workers and their families, be acceptable for the economy, and is consistent with past level of the wage. It will increase the minimum wage in three steps, from $7.25 to $10.10 per hour. The rate will then be indexed to inflation each year thereafter .The Act is intended to help restore the minimum wage to its historic level, making up for decades of destruction with the hopes of lifting families above the poverty guideline. To put it in perspective, a full-time worker that makes the current minimum wage of $7.25 an hour only earns $14,500 per year. A family of four living on those wages is below the poverty guidelines. There is evidence showing that increases in the minimum wage have very little or no negative effect on the employment of wage workers, even in times of weakness in the labor market. Minimum-wage increase can have a small stimulant effect on

Related Documents

  • Improved Essays

    Minimum Wage Rejection

    • 1087 Words
    • 5 Pages

    Supporters say it will help the economy but the facts just are not there. A minimum wage increase will only help a handful of people and the people it will help are not the people who need it. What people do not realize about increasing wages is that it will raise the cost of living at an even faster rate. An increase will also make the value of the dollar go down and there will be inflation, causing the cost of goods to go up, making a minimum wage increase irrelevant because workers will be right back to where they started. Higher wages will make it harder for people to get jobs and that is not helping the unemployment issue.…

    • 1087 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Minimum Wage Amendment

    • 1587 Words
    • 6 Pages

    This is because each year prices rise in consumer products. If the government keeps the federal wage the same each year, then people living on the minimum wage will be unable to compete with the inflation of prices. For minimum wage workers these increases help them in keeping their financial lives in order. The federal minimum wage has lost 7% of its value since it was last raised in 2009. As of 1968 the minimum wage was $1.60 per hour that translates to $10.90 per hour, comparatively higher then today (Raisetheminimumwage.com).…

    • 1587 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    Keeping The Minimum Wage

    • 1057 Words
    • 5 Pages

    Introduction: To Raise, or Not? A popular topic among today’s society is whether to raise the minimum wage, or leave it at its current rate of $7.25. Many people believe that the current rate is too low and doesn’t provide enough money to live off of. While raising the minimum wage would increase the amount of money in our pockets, many fear the increase would cut jobs out of the market. There are costs and benefits to each decision, and it takes a careful analysis to make the right decision Cost of Keeping Things the Same Keeping the minimum wage at the current rate has negatively affected many Americans in the modern era.…

    • 1057 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    The Minimum Wage is a great thing. It prevents Employers from ripping their employees off and underpaying them.The only problem with the current minimum wage is it doesn 't keep up with inflation and brings the full time salary in below the poverty line for minimum wage workers and almost forces a family to need government aid just to put food on the table and to have health care. There needs to be a change. The Government needs to increase the minimum wage to allow U.S. citizens to no longer need government aid, to help the economy and low income families, and to decrease the poverty rate. There is tons of controversy about whether the minimum wage should be increased or stay the same.…

    • 1314 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    The economy will have more money progressing throughout as workers are able to spend more. It would be more logical to help lift people out of poverty than rely on minimum wage. “The businesses best suited to the higher-wage world often lean more heavily on machines than their competitors or derive greater economic benefits from paying their workers a higher wage” (Scheiber, par. 22). The higher-wage employees feel better in their position because they can afford the resources they need to support their…

    • 1007 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Employers that pay higher wages for work that is producing the same at a lower wage has a better chance of going out of business (Sherk). As a business is built, then it can pay higher wages. Expecting small business owners to pay a large wage on the first day before knowing Baker 4 what an employee can do, will just enhance the chance of the business not succeeding (Sherk). Workers should be paid for their talents and hard work. In conclusion, there has been a history of arguments on whether the minimum wage should be raised or not.…

    • 1017 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    The government should increase the minimum wage so people can make a livable wage to support themselves financially and it would help for single parent families. Today there are debates whether the minimum wage increase makes society better off or make it worse. Some economist believes raising the minimum wage can move society away from the poverty line, and it has been a proven way to boost our economy. The evidence that economist received from analyzing the minimum wage is it that it does not lead to higher unemployment rates. Rather than increasing unemployment rate it has shown to increase productivity.…

    • 1024 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Minimum Wage Madness

    • 1272 Words
    • 6 Pages

    How will it impact people living in poverty? Will small businesses be affected by this major spike in wage? Raising the minimum wage is not the way to help America grow. It will cause many problems. There are better alternatives to this that can help boost jobs and will help citizens with jobs financially.…

    • 1272 Words
    • 6 Pages
    Superior Essays
  • Superior Essays

    When analyzing the topic of minimum wage, it is very diverse. Concerning the issue of raising minimum wage, many people hold different outlooks. Primarily, an increase in minimum wage will benefit The United States of America long term, but it also can negatively affect business owners and the less educated. Raising the minimum wage has also been considered to increase job opportunities and decrease the poverty rate. An increase in minimum wage may enhance the lives of citizens, but it could also hurt them.…

    • 1747 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    Minimum Wage Increase

    • 1824 Words
    • 7 Pages

    However, the businesses are less willing to demand more workers, and the excess workers seeking jobs are unemployed because of the shortage of jobs. Thus lowering the living standard of the worker minimum wage was to support. As written by Thomas E. Hall, author of Aftermath: The Unintended Consequences Of Public Policies, “[a]rtificially raising wages elevates the incomes of some low-skilled workers…but lowers the incomes of those unable to find work, many of whom might be willing to work for less than the minimum” (52). This goes to show that the consequences of artificially manipulating the labor market. People willing to supply the market with labor are without…

    • 1824 Words
    • 7 Pages
    Improved Essays