Natalie Hull

Ms. Sydoruk
Economics
9 October 2015
The Minimum Wage
The minimum wage has been a controversial topic in recent years, garnering much
media attention and debates. Some groups see it as a hand out that contradicts the American
Dream, while others recognize the need to offer hard-working Americans a living wage. Wealth
inequality is growing at a fast rate, owners of corporations taking in millions while their
employees live in poverty.
I believe the minimum wage should be raised at least to $12 an hour, but at best $15 an
hour. While on surface level, the minimum wage (7.25) may seem high now compared to the
1981 wage of 3.35, when adjusted for inflation and cost of living, the current minimum wage
would have to equal over $11 just to match the buying power of the wages of the early eighties.
Since the sixties, the minimum wage has lost more than 30% of its purchasing power. If the
minimum wage was raised to $10 an hour, 46% of families would move above the poverty line.
About 50 million Americans are living under the poverty line. Due to an institutionalized system
of white privilege, nearly half of african american workers, and 60% of Hispanic workers make
less than $15 an hour. By raising the minimum wage, these workers will have the chance to get
themselves out of poverty and create more opportunities for their children.
Tipped workers, such as wait staff, have the lowest minimum wage, on average around
$2, with most of their income relying on customer tips. Many restaurants have eliminated
tipping, instead paying a $10 minimum with chance for commission. The results of this have

been a more stable workplace, less turnover, and increase in the quality of their servers work.
Tipping is an unfair and unsteady method of payment, superficial and uncontrollable factors
coming into play, also with management greed, often taking percentages of workers earned tips.
Raising the minimum wage for wait staff workers, therefore eliminating the need for and reliance
on tips, will create a much more efficient and steady workplace for employees. Cities such as
Seattle and Los Angeles have begun raising minimum wages. When a food chain was
interviewed in Seattle, the company said they would have to raise prices a mere $.05 to
compensate for the raise in wages.
In a 2014 letter to the white house signed by 600 economists and seven nobel prize
winners, it was concluded that the weight of evidence now showing that increases in the
minimum wage [to $10.10 per hour] have had little or no negative effect on the employment of
minimum-wage workers, even during times of weakness in the labor market. Research suggests
that a minimum-wage increase could have a small stimulative effect on the economy as lowwage workers spend their additional earnings, raising demand and job growth, and providing
some help on the jobs front, (Economic Policy Institute).
A recent survey has shown that a raise in minimum wage is supported by small business
owners. According to a national scientific opinion poll conducted for Small Business Majority
by Public Policy Polling, 60% of small businesses nationwide support gradually raising the
federal minimum wage to $12 per hour by 2020 and adjusting it annually to keep pace with the
cost of living. Nearly half of small businesses (45%) strongly support increasing the minimum
wage to $12, (Small Business Majorities). The minimum wage has been growing steadily since
the 30s and not once has the American GDP ever suffered as a result of increased wages. Studies

show a majority of Americans support and increased wage, but the powerful, wealthy few refuse
to acknowledge the needs and desires of the American people, something that has resulted in and
will continue to result in strikes, employee turnovers, and an increasing percentage of Americans
living under the poverty line. As with any reform, there will be negative consequences, but the
benefits for American workers and families far outweigh the few negative results.

Sources:
Sanders, Bernie. "$15 Minimum Wage." YouTube. YouTube, 15 July 2015. Web. 01 Oct. 2015.
"Small Businesses Support Raising Minimum Wage to $15." Small Business Majorities (n.d.): n.
pag. Small Business Majority.org. 29 July 2015. Web. 1 Oct. 2015.
"Over 600 Economists Sign Letter In Support of $10.10 Minimum Wage: Economist Statement
on the Federal Minimum Wage." Economic Policy Institute. N.p., 14 Jan. 2014. Web. 01
Oct. 2015.
"Does a $10.10 Minimum Wage Get You out of Poverty?" Politifact. N.p., 8 May 2014. Web. 01
Oct. 2015.
"Minimum Wage Mythbusters." - U.S. Department of Labor. N.p., n.d. Web. 01 Oct. 2015.
"These Waiters Dont Make Tips. Instead They Make $15 An Hour." ThinkProgress. N.p., 10
June 2014. Web. 01 Oct. 2015.
"Americans Living Below Poverty Line Hits Record Under Obama." Newsmax. N.p., 08 Jan.
2014. Web. 01 Oct. 2015.