In February 2014, there were about 155 million people in the United States work force. Even with minimum wage made by the federal government and working class civilians that work for the federal minimum wage of $7.25 have a hard time with day to day life, including food payments, mortgage payments, and children. President Obama addressed the many individuals and their families working 40 plus hours for the federal minimum wage the poverty level during his annual 2014 Speech. President Obama made a proposal during the speech to raise the federal minimum wage to $10.10 which would be a $2.85 increase from $7.25 which is the current minimum wage.
A raise to $10.10 would be the second-largest one-year change in minimum wage. The raise would be …show more content…
Estimates from the Congressional Budget Office goes from a 500,000 job loss to an increase in employment. At this time, it is not very predictable about what will happen to middle class workers. According to the CBO 's two-thirds chance, it seems likely that there would be a loss of employment. The loss would probably range from zero job losses to a million job losses, but the number of actual loss is unknown; in fact, it could potentially destroy more than a million, or even more total employment. Having such a vast range of potential employment loss, or even possible growth, leaves an inability to accurately predict the effect on …show more content…
One thing that most Americans can agree on is the fact that any American working full time should not have to live in poverty, and their family should not live in poverty as well. The new increase might bring an end to poverty for some people. The average estimate is approximately 900,000 families lifted out of poverty. However, the issue of inflation also arises. Would the new wage increase force businesses to raise prices of goods? To this point we cannot say how this will affect the economy, nor would it be reasonable to predict certain effects of an increase, but it is evident that America 's poverty needs to be
A raise to $10.10 would be the second-largest one-year change in minimum wage. The raise would be …show more content…
Estimates from the Congressional Budget Office goes from a 500,000 job loss to an increase in employment. At this time, it is not very predictable about what will happen to middle class workers. According to the CBO 's two-thirds chance, it seems likely that there would be a loss of employment. The loss would probably range from zero job losses to a million job losses, but the number of actual loss is unknown; in fact, it could potentially destroy more than a million, or even more total employment. Having such a vast range of potential employment loss, or even possible growth, leaves an inability to accurately predict the effect on …show more content…
One thing that most Americans can agree on is the fact that any American working full time should not have to live in poverty, and their family should not live in poverty as well. The new increase might bring an end to poverty for some people. The average estimate is approximately 900,000 families lifted out of poverty. However, the issue of inflation also arises. Would the new wage increase force businesses to raise prices of goods? To this point we cannot say how this will affect the economy, nor would it be reasonable to predict certain effects of an increase, but it is evident that America 's poverty needs to be