Reducing The Minimum Wage For A Living Wage Essay

759 Words Nov 14th, 2015 4 Pages
The great Frederick Douglass once said, “Where justice is denied, where poverty is enforced, where ignorance prevails, and where any one class is made to feel that society is an organized conspiracy to oppress, rob and degrade them, neither persons nor property will be safe.” In a day and age where the middle class is collapsing and the average family is struggling to make ends meet, increasing the federal minimum wage to a living wage is imperative to help the economy and stimulate consumer spending, create more jobs, and diminish poverty for the working poor.
Some economists argue that increasing the minimum wage stimulates consumer spending because consumers have more to spend which in turn helps the economy. According to Think Progress, raising the wage by $1.75 would increase household spending by about $48 billion the following year, which amounts to .3 percent of GDP. If the possibility of job losses is taken into consideration, the authors calculate that spending would still go up by $28 billion, or .2 percent of GDP” (Study: A Minimum Wage). Opposers of the minimum wage increase might be unaware that various studies have been conducted illustrating the positive effects of minimum wage increase: “the Chicago Federal Reserve Bank finds that minimum wage increases raise incomes and increase consumer spending, especially triggering car purchases. The authors examine 23 years of household spending data and find that for every dollar increase for a minimum wage worker…

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