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. According to Desert News, the annual salary of a full-time worker making minimum wage is $15,080, putting it just below …show more content…
According to Forbes, the keeping the minimum wage the same provides young people with a starting point, and gives enough income to sustain a low-cost lifestyle (Forbes, 2012). The lower income is seen as a “take off” point for many young workers. Forbes argues that the minimum wage jobs aren’t meant to be seen as a career, but rather create that hunger for advancement in the workplace. Forbes also explains that the minimum wage allows employers to budget more workers into their staff because of the lower pay rates. This, in turn, creates more jobs for the economy. Additionally, it is believed that a fair minimum wage reduces the cost of social welfare programs that might have to assist low-income workers from potentially engaging in illegal activities (theft, selling drugs) that reduce economic progress (Forbes, 2012). While some may not want to believe it, there are benefits of keeping the minimum wage where is currently …show more content…
US News explains that for low-income families as a group, a minimum wage hike to $10.10 would raise average family incomes that currently sit below the poverty line by 2.8 percent and reduce the number of people living in poverty by 900,000 (US News, 2014). OxFam released a report recently explaining more benefits to raising the minimum wage. One often overlooked factors when discussing minimum wage is the moral of the Public. Studies show that the moral of Americans would increase greatly if the minimum wage was raised because majority of the public wants it (OxFam, 2014). OxFam also explains the benefits that raising the minimum wage would have on the overall US economy. Economists have long recognized that boosting spending, by putting money in the public’s pocket, has positive effects on the economy. The $32.6 billion in additional income for low-wage workers would be spent on things like rent, food, and other necessities, providing growth for the economy. The wage increase could provide a strong growth in the economy, and create up to 140,000 new jobs. OxFam also explained that low-wage workers obtain about $243 billion a year in federal benefits. “45 percent of America’s 10 million restaurant workers rely on government assistance, and 32 million low-wage workers use SNAP (the Supplemental Nutrition Assistance Program, popularly known as food stamps)” (OxFam, 2014). They go
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. According to Desert News, the annual salary of a full-time worker making minimum wage is $15,080, putting it just below …show more content…
According to Forbes, the keeping the minimum wage the same provides young people with a starting point, and gives enough income to sustain a low-cost lifestyle (Forbes, 2012). The lower income is seen as a “take off” point for many young workers. Forbes argues that the minimum wage jobs aren’t meant to be seen as a career, but rather create that hunger for advancement in the workplace. Forbes also explains that the minimum wage allows employers to budget more workers into their staff because of the lower pay rates. This, in turn, creates more jobs for the economy. Additionally, it is believed that a fair minimum wage reduces the cost of social welfare programs that might have to assist low-income workers from potentially engaging in illegal activities (theft, selling drugs) that reduce economic progress (Forbes, 2012). While some may not want to believe it, there are benefits of keeping the minimum wage where is currently …show more content…
US News explains that for low-income families as a group, a minimum wage hike to $10.10 would raise average family incomes that currently sit below the poverty line by 2.8 percent and reduce the number of people living in poverty by 900,000 (US News, 2014). OxFam released a report recently explaining more benefits to raising the minimum wage. One often overlooked factors when discussing minimum wage is the moral of the Public. Studies show that the moral of Americans would increase greatly if the minimum wage was raised because majority of the public wants it (OxFam, 2014). OxFam also explains the benefits that raising the minimum wage would have on the overall US economy. Economists have long recognized that boosting spending, by putting money in the public’s pocket, has positive effects on the economy. The $32.6 billion in additional income for low-wage workers would be spent on things like rent, food, and other necessities, providing growth for the economy. The wage increase could provide a strong growth in the economy, and create up to 140,000 new jobs. OxFam also explained that low-wage workers obtain about $243 billion a year in federal benefits. “45 percent of America’s 10 million restaurant workers rely on government assistance, and 32 million low-wage workers use SNAP (the Supplemental Nutrition Assistance Program, popularly known as food stamps)” (OxFam, 2014). They go