Laura Combs
English 101
Begert
19 November 15
Paper #3: Should the U.S. minimum wage be raised?
In this day and age in America, the economy is changing with a blink of an eye. Does it cause a disadvantage because it raises firms’ costs or would some businesses experience higher sales because their customers’ income is higher? Certain companies and people have power over others, drastically impacting where and who money goes to. This creates a huge difference in economic status within Americans. With certain people having an advantage over others, people working that earn a minimum wage salary shouldn’t have to be living a check-to-check life. As cliche as it sounds, there are bills to pay and mouths to feed, and some families in poverty are doing whatever they can to get by. With this in mind, the minimum wage in this country should be raised.
“It has been six long years since the minimum wage was changed.” In 2009 it was raised about two dollars to $7.25 nationally but this is still not enough to support a family. Hopeful-Presidential, democrat Bernie Sanders is determined to raise the minimum wage to $15 an hour. His valid point is to “protect the least powerful members of our society from predation.” (dailycaller.com). President Barack Obama has looked at a reasonable $10.10 an hour, but labor unions are wanting more, hoping for $15 an hour for America’s minimum wage. The increase of the minimum wage have had a great deal of success and outweigh the cost of low-wage workers, “But in the highly volatile low-wage job market, many people regularly move between having a job and looking for one.” (U.S. News).
There is a constant argue of whether or not minimum wage should be raised. Some think it’s pointless or won’t do much, but those people are typically the ones that don't have to worry about money. And with women making up two-thirds of the minimum wage workers, the increase of minimum wage would benefit them greatly, giving them a chance against today’s economic challenges. The increase would of course raise the whole family income, as well as… “employers facing a higher minimum wage might demand less labor, leading to more joblessness and lost income in families with low-wage workers.” (U.S. News).
The Congressional Budget office has found that a hike of about three dollars minimum wage would result in reduction of poverty across America. To be specific, roughly 900,000 people would no longer be living in poverty. President Obama is in favor of it, as well as other democrats. Obama has in fact looked at a reasonable $10.10 an hour, but labor unions are wanting more, hoping for $15 an hour for America’s minimum wage. It is up to lawmakers to enact it. With this is mind though, the CBO had come to realize that there would be some downsides to raising the national minimum wage. With employers covering a higher labor cost, they may have to let some workers go, due to a possible loss of income for their business and purchasing power. Job loss is a recurring worry for Americans, but you have to remember that states won’t drastically raise their minimum wage from $7.25 to $15 an hour. That would be too drastic of a change. Like everything, it will take time, and with a slow and steady pace, people won’t have to worry about losing their jobs. However, a rough downside to raising minimum wage was between 2007 and 2009. This was when the minimum wage was raised 41%. Sure, from the sound of it, it seemed like a good plan, but not to those 16-19 year olds that were unable to find a job. The jobless rate for people those ages rose 10%, from about 16% to 26% between those two years. But looking closely, does this even compare with the middle- aged workers doing whatever they can to support a family? The percentage doesn’t even compare from the number of parents 16-19 to the number of parents 20-retirement age working a minimum wage job. People at that young age still have hope and more employment opportunities than people older that are being relied on by their families to bring food to the table.
“A higher minimum wage can spur businesses to operate more efficiently and employees to work harder. Employers may look for ways to increase productivity, such as setting higher performance standards for employees or investing more to train them. A higher wage may motivate employees to work harder because when they're paid decently, they have more to lose by getting fired.”
The argue against minimum wage also has a great deal to do with political standpoint. For example, a pew research center surveyed people in 2014 about their opinions on the matter. 73% of people voted an increase in the federal minimum wage to $10.10 an hour, a solely Democratic-backed proposal. While they and 71% of independents were in favor of the raise, 53% of republicans were in favor and 43% were opposed. With a great deal of this argument having to do with political viewpoints, as well as religious or communal opinions that affect one’s view on the matter. As frustrating as it may be, we cannot change someone's opinion on such controversial issues such as this one, but it is up to the state and national lawmakers to decide the minimum wage. With an increase within even the past few years, there is hope for more of an increase within the upcoming years. Certain cities already have enacted a minimum that will be set in the next few years. For example, Seattle will be $15 an hour by 2021. San Francisco will be $18 an hour by 2018, and Chicago will be $13 an hour by 2019. In seattle specifically, Robert Reich believes that the current economic state of America is “anemic” because people don’t really have the money or power to get the economy going again. His guess is that “Seattle's businesses will adapt through the years of change in minimum wage without any net loss of employment.” He goes on in a positive, reinforcing tone about how Seattle's employers will also have a wider availability of choices – as the $15 an hour brings in the labor force, some people who otherwise weren’t interested. This means that the workers they have will be reliable and stay longer.“The gains from a higher minimum wage extend beyond those who receive it. More money in the pockets of low-wage workers means more sales, especially in the locales they live in — which, in turn, creates faster growth and more jobs.”
“You know what that means when someone pays you minimum wage? You know what your boss was trying to say? ‘Hey if I could pay you less, I would, but it’s against the law.’” -Chris Rock
Wolf, Connor. “It’s Been Six Years Since Feds Raised The Minimum Wage. What Were The Economic Results?” The Daily Caller News Foundation. The Daily Caller News Foundation, 25, Jul. 2015. Web. 19, Nov. 2015.
Harvey, John. “The real argument for raising minimum wage.” Forbes Leadership. Forbes Leadership, 31, Jul. 2015. Web. 19, Nov. 2015.
Delsiver, Drew. “5 Facts about the minimum wage.” Fact Tank. Fact Tank, 23, Jul. 2015. Web. 19, Nov. 2015.
Stone, Chad. “Raising the minimum wage brings many benefits” U.S. News, 21, Feb. 2014. Web. 3, December. 2015.