The Real Meaning Of $ 9 An Hour Analysis

In the TIME Magazine article titled “The Real Meaning of $9 an Hour”, Rana Foroohar explains how Walmart’s modest wage hike to a $9 an hour is not just good for the business, but a proof that the U.S economy is doing better. On February 2015, Walmart decided to raise the minimum wage of its workers well above the federal minimum wage by $1.75. For the minimum wage workers, who have spent much of the past year in protest, this moderate increase of pay might be considered as a major victory towards their fight for $15 minimum. It is also highly likely that other low-income workers will see a raise, not only in retail but other sectors since all compete for the same workers as Walmart. It also appears that Walmart sets the standards for most retail …show more content…
They regard that minimum wage increase is a violation of economic freedom and leads to high unemployment. For example, according to Foroohar, “Congressional budget office found that a $9 minimum wage could put zero to 500,000 low-end jobs at risk” (Foroohar 20). This analysis shows a narrow focus on the loss of jobs only, it does not emphasize on the fact that it pleases the majority of workers considering it will lift one million people out of poverty and increases earnings for millions of low-wage …show more content…
Congress has so far blocked any initiative to change the federal minimum wage by providing the same failed reasons like loss of jobs or higher prices. However, in recent years the U.S. economy has shown sustainable growth with the retail and fast food industry growing at a faster rate than the economy. This means that the loss of jobs can be prevented by the rise in demand for business. Additionally, the industry is also able to compensate the wage increases through different savings. For example, a higher wage means low employee turnover rate which reduces the cost of hiring and training new workers. Thus, compared to the advantages the increase in wage might not cost