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
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