Should Obama raise the cost of minimum wage?
The issue that is the subject of debate is should President Obama raise the cost of minimum wage? President Obama’s proposal to raise the cost of minimum wage left many Americans astonished in a good and bad way. The eyebrow raising plan brings about many inquiries along with curiosity about how rendering more money to the poor could help out the economy. Currently the federal minimum wage for 2012 is set at $7.25 per hour. President Obama proposes that the wage limit should be elevated to $9 per hour by the year 2015 (Roff, 2013). Minimum wage could be defined as the lowest wage paid per hour to a worker ordained by the federal and state government (Gorman, 2008). Minimum wage was originally adopted in the 1930s, to protect inexperienced or young workers from getting paid unfair salary by their employers (Gorman, 2008). This provided a shield for workers from companies immorally trying to get ahead by over working laborers for very little pay. Unethically, some companies provide no real valued incentives, rewards, or benefits for underpaid laborers who dedicate their lives to these companies. These works are important contributors to our society. They deserve to be treated with respect regardless of where they choose to work. According to Bureau of labor statistics (2013), “In 2012, 75.3 million low wage earners in the U.S. were 16 years old or older. These people signify 59% of low income workers.” (para. 1). Some skeptics are seeing red and believe the plan is a total dud. They speculate moving forth with this idea will send the economy spiraling down a dark pit. In their minds, they are certain of which raising minimum will not create new jobs, but in fact it will send unemployment rates sky rocketing through the roof. These cynics predict thousands of jobs will be lost due to the new proposal. Labors will lose their jobs to companies laying off and hiring more skilled workers, as a result of the new deal. In the struggle to adjust; they project companies will raise the prices of goods and services. In turn this will hurt families living in poverty. In spite of optimists, the plan to raise minimum wage is a surefire way to boost the economy as well as the moral of the workers. There are many reasons why this proposal should proceed. “According to the Census Bureau of 2011, approximately 46.2 million Americans citizens are living beneath poverty level” (Weise, 2012). Raising the minimum wage is a practical solution to solving poverty issues in America. Thorough research and historical practices have evidence initiating this plan is a undisputable and powerful technique to lower unemployment, create more jobs, aid families in poverty, and put money back into hands of the government. Nevertheless raising the cost of the minimum wage has its share of pros and cons; exploring possibilities that will get the economy back on the road to success is really all that matters. The pros to raising federal minimum wage are limitless. Reporter Schoen stated, “This upsurge will aid minimum wage income families in paying their bills and give them the ability to do more then make ends meet. The majority of the cash that is placed into the hands to the consumer will help improve economic evolution by way of more consumer expenditure. Consumer spending accounts for approximately 70 percent of America’s gross domestic product” (Schoen , 2013). Depositing money back into the hands of the people that need it and use it the most is what fuels the economy. A continuous demand of goods or services by the consumer is what keep a business thriving. A higher demand increases the need for more goods. In turn the companies need more workers to help supply an abundance of goods; therefore more jobs are created. The incentive to make more money is expected to drive welfare precipitants out of welfare and back to work. The creation of more jobs will lower unemployment rates. This proposal will...
References: Lowrey, A. (2013, February 13). Raising Minimum Wage Would Ease Income Gap but Carries Political Risks. The New York Times, p. 1.
(2013). Obama 's Mininum-Wage Gambit Puts Republicans on Defensive. Retrieved from http://www.thedailybeast.com/articles/2013/02/18/obama-s-minimum-wage-gambit-puts-republicans-on-defensive.html
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