Benefits of Raising the Minimum Wage Essay - 614 Words

â€Å"Paying your employees well is not only the right thing to do, but it makes for good business†-Jim Sinegal, CEO of Costco. Many of America’s employees are not being paid well, however, for the annual income of a full-time employee who works year-round is less than $16,000 (about $15, 080) according to the current federal minimum wage (Rebuilding). To put into retrospect how out-dated the federal minimum wage is, consider that the minimum wage of 1956 amounted to exactly $7.93 in 2009 (Henderson). How progressive is it that our nation’s workers being paid less today than workers from the 50’s? The federal minimum wage should be raised in order to assist families out of poverty, to ensure the effort and loyalty of workers, and†¦show more content†¦Raising the pay of one’s workers is proven to increase productivity in the workplace: Worker productivity increased 104% while the minimum wage rose 101% between 1947 and 1973 (Henderson). Com mon sense also plays a role here. If you were being paid a penny an hour when you really deserve a quarter an hour, would you work your hardest? Would you begin your work enthusiastically at full-throttle? No, you wouldn’t, and the second you saw a better opportunity at another place of employment, you would jump to it. Why should you feel loyal towards a job or company which does not pay you enough to live? The federal minimum wage should be raised in order to ensure the effort and loyalty of workers. The most prevalent and steadfast myth surrounding the raising of the federal minimum wage is that it will doom the economy. This might seem logical at first, but just think about it for a second. Why do minimum wage employees need more cash? The answer is simple: To spend it, to buy the things that they and their families need to survive. â€Å"Most minimum wage workers need this income to make ends meet and spend it quickly, boosting the economy. Research indicates that for every $1 added to the minimum wage, low-wage worker households spent an additional $2,800 the following year† (Fair). Furthermore, EPI estimates that if the federal minimum wage were raised to $10.10 an hour, it would result in overShow MoreRelatedThe Benefits Of Raising The Minimum Wage1656 Words   |  7 Pagesto be should the minimum wage be raised or should it be lowered or eliminated altogether. From where I stand minimum wage should be raised. Everyone is more successful when people are paid a livin g wage. Changes to the minimum wage would strengthen the economy and business, Lift Americans out of poverty, and will be unlikely to significantly impact prices. The only way to grow the economy in a way that benefits 90% is to change the structure of the economy. Paying people a fair wage is a sign of respectRead MoreThe Benefits Of Raising The Minimum Wage706 Words   |  3 Pages Minimum wage is a difficult number to decide on because it affects different income earning citizens in different ways. According to Principles of Microeconomics, by N. Gregory Mankiw, minimum wage is a law that establishes the lowest price for labor that and employer may pay (Mankiw 6-1b). Currently, the minimum wage in the United States is $7.25 per hour. For many years politicians and citizens have argued on what should be the minimum wage that would benefit the economy and society in generalRead MoreBenefits Of Raising The Minimum Wage908 Words   |  4 PagesIn our modern society one of the seemingly least controversial topics is the minimum wage. The popular opinion wants to raise the minimum wage, but is the popular opinion always right? Throughout recent years, politicians have made promises to raise the minimum wage to help low-income earners live a better life. Contrary to popular belief, raising the minimum wage actually hurts low-income earners and low-skilled workers. We must first define a low-skilled worker. A low-skilled worker does not meanRead MoreBenefits Of Raising Minimum Wage1291 Words   |  6 Pages In recent years, the demand for an increased minimum wage has erupted across the nation. During the ongoing debate, a few states, cities, counties, and companies have taken the initiative to raise the minimum wage of $7.25 per hour to the varying wages of $7.50-$11.50 per hour. According the United States Labor Department, 29 states and the District of Columbia pay above the minimum federal level of $7.25 per hour. The raising of the minimum wage has numerous supporters; however, there are individualsRead MoreBenefits Of Raising Minimum Wage1757 Words   |  8 Pages Minimum wage has been a constant battle in the United States for decades. The ultimate goal is to put the American people in the best position possible to succeed and be the least limited. Many believe the immediate thought that higher wages equals higher standard of living a nd mitigating the poverty gap because more money will be in the hands of consumers, but this is a near sighted belief. The long term effects of raising wages not only will cause detriments of loss of employment, mistargetingRead MoreBenefits Of Raising Minimum Wage Essay2170 Words   |  9 PagesRaising minimum wage has become one of today’s most popular issues to debate. Minimum wage has not grown along with inflation throughout the years and it has caused many people to fall into poverty in the United States. But what is Minimum wage? It is the minimum pay a worker is entitled to for their labor. Meaning that it is illegal for employers to pay a worker less than the minimum with the exception of a few jobs like waitressing. On July 24, 2019 the The Federal Government set minimum wage atRead MoreBenefits Of Raising Minimum Wage1250 Words   |  5 PagesCreating jobs, raising minimum wage, donating to the poor are not going to erase the poverty out of the United States of A merica. The government defines poverty as the bottom fifteen percent of annual income. No matter what one does to increase a person’s income there will always be someone in poverty. Across America there are always charities, religious groups, and civic clubs who are giving to the poor--from food giveaways, clothing giveaways, free tutoring, free health screenings, whateverRead MoreThe Benefits of Raising the Federal Minimum Wage1334 Words   |  6 PagesPicture this: You are a single parent of two, you work 40 hours a week plus occasional overtime at a minimum wage paying job, you struggle to put food on the table to feed your family, and then you receive a call from the bank saying that your home is being foreclosed. This is the situation faced by thousands of Americans every year due to low income and wealth inequality. The federal minimum wage (FMW) as of April 2014 is $7.25, which is not enough to keep a family of two above the poverty line.Read MoreRaising Minimum Wa ge Will Benefit Our Economy1576 Words   |  7 PagesThere are many people who will debate whether-or-not raising minimum wage will benefit our economy. Money is what helps us survive and acquire our necessities of life. Most children are instilled with the thought that going to school, getting a good education, and obtaining a good job would guarantee success and happiness; although everyone does not have that privilege, and may end up with lower paying jobs. Almost anyone can get a job at a fast food restaurant, clothing store, or any general jobRead MoreRaising the Minimum Wage: A Counter-Intuitive Solution Essay753 Words   |  4 PagesWhile some believe that raising the minimum wage will resolve poverty issues and lack of pay with the signing of legislation, the raising of the minimum wage to $10.10 an hour (as advocated by President Obama and the Democrats) would cause the poverty issue to be worse than it already is; inflation would occur, employees would be laid off, and minimum wage employees would lose welfare benefits, thus offsetting the wage increase. The Government should consider the effects on the American economy as