Federal Minimum Wage
Should we raise the federal minimum wage, and if so how high
Over the recent years, many economists and employers in the United States have been debating about the need to either increase or decrease the federal minimum wage. This debate increased when President Barrack Obama revealed his plans to increase the federal minimum wage from $7.25 to $10.10/hr, during the 2014 State of the Union Address. The proponents of this proposal are of the train of thought that increasing the minimum wage will increasingly strengthen the economy, as well as the workforce in general. While this is true, critics are saying such proposals arguing that any increase on the minimum wage would lead to a sever loss of jobs, since businesses will have to lay off …show more content…
By increasing worker’s salary and wages, they will be able to have enough money to take home, which will create some financial security for their families. With a strong financial security, people will be able to buy goods and services, therefore creating job opportunities for other Americans who are in the business sector. According to the article, Minimum Wage that was published on Procon.Org, there was a research study carried out by the Federal Reserve Bank of Chicago, which indicated that, “an increase in the minimum wage will boost the aggregate household spending by $48 billion (Minimum Wage - Procon.Org)”. More opportunity of job creation will also be felt when organization experiences increased productivity from psyched up workers. Therefore the company will earn more from the increased productivity, and it would be forced to employ more people to keep up with the pace. This shows the good aspect of increasing the minimum wage and its positive impact on the economy.
While increasing the federal minimum wage has good effects on the economy and workforce welfare, it is shown with its fair share of disadvantages. For example, it will lead into reduction in job opportunities, and this is further explained in the online article, "Background Of The Issue - Minimum Wage,” whereby it states that in the first 25% minimum wage that happened in 1938 there was losses of jobs. (Minimum Wage - Procon.Org). Moreover, in reality around 1.3 million jobs will be lost in the event that the minimum wage is increased up to
Over the recent years, many economists and employers in the United States have been debating about the need to either increase or decrease the federal minimum wage. This debate increased when President Barrack Obama revealed his plans to increase the federal minimum wage from $7.25 to $10.10/hr, during the 2014 State of the Union Address. The proponents of this proposal are of the train of thought that increasing the minimum wage will increasingly strengthen the economy, as well as the workforce in general. While this is true, critics are saying such proposals arguing that any increase on the minimum wage would lead to a sever loss of jobs, since businesses will have to lay off …show more content…
By increasing worker’s salary and wages, they will be able to have enough money to take home, which will create some financial security for their families. With a strong financial security, people will be able to buy goods and services, therefore creating job opportunities for other Americans who are in the business sector. According to the article, Minimum Wage that was published on Procon.Org, there was a research study carried out by the Federal Reserve Bank of Chicago, which indicated that, “an increase in the minimum wage will boost the aggregate household spending by $48 billion (Minimum Wage - Procon.Org)”. More opportunity of job creation will also be felt when organization experiences increased productivity from psyched up workers. Therefore the company will earn more from the increased productivity, and it would be forced to employ more people to keep up with the pace. This shows the good aspect of increasing the minimum wage and its positive impact on the economy.
While increasing the federal minimum wage has good effects on the economy and workforce welfare, it is shown with its fair share of disadvantages. For example, it will lead into reduction in job opportunities, and this is further explained in the online article, "Background Of The Issue - Minimum Wage,” whereby it states that in the first 25% minimum wage that happened in 1938 there was losses of jobs. (Minimum Wage - Procon.Org). Moreover, in reality around 1.3 million jobs will be lost in the event that the minimum wage is increased up to