Why Minimum Wage Needs to be Raised In today’s society, the minimum wage serves as a foundation for our economy, aiming to ensure that the lowest-paid workers earn a wage that allows them to support themselves and their families. However, in the face of rising living costs and persistent income inequality, the minimum wage has come under scrutiny. Raising the minimum wage is not only moral but also a strategy for creating economic stability, reducing poverty, and promoting equality among people. The current federal minimum wage of $7.25 per hour is insufficient to cover basic living expenses, particularly housing costs. Research indicates that a full-time worker would need to earn significantly more to afford modest housing in the United States.
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Increasing the minimum wage could stimulate economic activity and foster job growth. The purchasing power of the minimum wage has declined over the years, necessitating adjustments to reflect the current economy. Studies suggest that raising the minimum wage would lead to higher wages for millions of workers, injecting billions of dollars into the economy. By boosting household spending and decreasing reliance on public assistance programs, an increased minimum wage could contribute to long-term economic stability and prosperity. Raising the minimum wage can yield significant social benefits, including poverty reduction, improved school attendance, and enhanced public health. Studies indicate that increasing the minimum wage would lift millions of individuals out of poverty and reduce dependence on government assistance programs. Higher wages are associated with increased school attendance and academic performance among low-income children, offering greater opportunities for …show more content…
However, amidst the optimism surrounding this legislation, there are understandable concerns voiced by some franchise owners regarding its potential economic repercussions.For example, Alex Johnson's predicament, owning multiple restaurants in the San Francisco Bay Area, reflects the complexities faced by businesses in adjusting to increased labor costs “Alex Johnson owns 10 Auntie Anne's Pretzels and Cinnabon restaurants in the San Francisco Bay Area. He said sales have slowed in 2024, prompting him to lay off his office staff and rely on his parents to help with payroll and human resources”(The Professional Medical Journal). While committed to treating his employees fairly, Johnson's dilemma illustrates the delicate balance businesses must strike between maintaining profitability and ensuring fair compensation for their workforce. Nonetheless, empirical evidence from California's previous minimum wage increases offers reassurance, demonstrating that such measures often result in higher wages without precipitating job losses "I was surprised at how little, or how difficult it was to find disemployment
Increasing the minimum wage could stimulate economic activity and foster job growth. The purchasing power of the minimum wage has declined over the years, necessitating adjustments to reflect the current economy. Studies suggest that raising the minimum wage would lead to higher wages for millions of workers, injecting billions of dollars into the economy. By boosting household spending and decreasing reliance on public assistance programs, an increased minimum wage could contribute to long-term economic stability and prosperity. Raising the minimum wage can yield significant social benefits, including poverty reduction, improved school attendance, and enhanced public health. Studies indicate that increasing the minimum wage would lift millions of individuals out of poverty and reduce dependence on government assistance programs. Higher wages are associated with increased school attendance and academic performance among low-income children, offering greater opportunities for …show more content…
However, amidst the optimism surrounding this legislation, there are understandable concerns voiced by some franchise owners regarding its potential economic repercussions.For example, Alex Johnson's predicament, owning multiple restaurants in the San Francisco Bay Area, reflects the complexities faced by businesses in adjusting to increased labor costs “Alex Johnson owns 10 Auntie Anne's Pretzels and Cinnabon restaurants in the San Francisco Bay Area. He said sales have slowed in 2024, prompting him to lay off his office staff and rely on his parents to help with payroll and human resources”(The Professional Medical Journal). While committed to treating his employees fairly, Johnson's dilemma illustrates the delicate balance businesses must strike between maintaining profitability and ensuring fair compensation for their workforce. Nonetheless, empirical evidence from California's previous minimum wage increases offers reassurance, demonstrating that such measures often result in higher wages without precipitating job losses "I was surprised at how little, or how difficult it was to find disemployment