Sarah Humphrey

Adult 101

Haddad

02 December, 2016

To Raise Or Not To Raise?

Though the Presidential race has come to a close, there still remain hot topic

issues prominent in the hearts of the people. One such topic is the question that has

been sweeping the nation, should the minimum wage be raised? Millions of Americans

across the country who attempt to make a living under minimum wage jobs are

struggling to support themselves and their families. Working for $7.25 an hour provides

little means of survival and no opportunity to move past front-line jobs. Many workers

are demanding that the minimum wage be raised to $15 and hour, but for fast foods

jobs that amount is too (Barach). The minimum wage needs to be raised so American

families can properly support themselves, but the raise should develop gradually.

Minimum wage has not kept up with the price of inflation, and therefore does not

adequately support the modern family. The value of money continues to inflate year

after year, so the minimum wage standard needs to evolve with that change. Raising

the minimum wage is a necessary attribute of the economys progression. The

minimum wage, since being brought into fruition in 1938 at $0.25 an hour, has only

increased with time. By 1961 the minimum wage was raised to a $1.00, by 1974 it was
$2.00, by 1990 it was $3.80, by 2007 it was $5.85, and finally by 2009 it was $7.25 and

has remained there (Wage and Hour Division). However, low wage workers have not

been provided a wage that keeps pace with the rising cost of goods and services. In

1968 the minimum wage was $1.68, which in 2016 is equivalent to $11.16, making the

minimum wage back in 1968 53.9 percent higher than the $7.25 federal minimum wage

today (Should the Federal). How are families expected to live off that?

Raising the minimum wage in the US would increase economic activity and spur

job growth. Many opposers to raising the minimum wage claim that an increase would

force business to lay off employees and raise unemployment levels. However, raising

the minimum wage would actually increase economic activity and spur job growth. The

Economic Policy Institute stated that raising the minimum wage to $10.10 an hour would

inject $22.1 billion net into the economy and create about 85,000 new jobs over a three-

year phase-in period. The Federal Reserve Bank of Chicago predicted that it would

increase household spending by $48 billion the following year, boosting GDP and

leading to job growth. While there are many concerns regarding increases in the

minimum wage, a by economists Alan Krueger, PhD, and David Card, PhD, observed

employment in the fast food industry after New Jersey raised its minimum wage by 80

cents, and found no indication that the rise in the minimum wage reduced employment

(Should the Federal). While there may be many concerns regarding increases in the

minimum wage, an increase would be beneficial for millions of people.

There are many misconceptions about the effects of raising the minimum wage,

but they are more positive than opposers to wage increases believe. Opposers believe

that increasing the minimum wage means small business owners cant afford to pay
their workers. On the contrary, according to the US Department of Labor, an increase

would immediately put more money in the pocket of low-wage workers who will then

spend the money on things like housing, food, and gas. This boost in demand for goods

and services will help stimulate the economy and help create opportunities. They also

believe that wage increase is bad for the economy research has shown that higher

wages sharply reduce employee turnover which can reduce employment and training

costs. Not only that, but a common misconception is that wage increase is bad for the

economy, but since 1938, the federal minimum wage has been increased 22 times. For

more than 75 years, real GDP per capita has steadily increased, even when the

minimum wage has been raised (Minimum Wage Myth Busters). What are believed to

be cons of increasing minimum wage, are actually pros upon closer inspection.

The minimum wage should be increased to better aid low income workers. They

can barely afford to live, let alone provide for their families. The debate over increasing

minimum wage is a hot topic that many have a strong opinion on, but research suggests

that wage increases are a natural progression that raise with inflation and would actually

benefit millions of people and the economy. Raising the minimum wage to $15 is too

high for fast foods workers and the like. However, raising wages to $10.10 and hour

would be an adequate start to aiding workers in actually being able to properly provide

for their families. The only thing left to do is continue to vouch for higher wages and

wait for the result of everyones hard work.

 Works Cited

"Minimum Wage Mythbusters." United States Department of Labor. United States

Government, 09 Dec. 2015. Web. 02 Dec. 2016.

Barach, Jake. "McDonald's Sample Budget Sheet Is Laughable, but Its Implications Are

Not." NASDAQ.com. NASDAQ, 27 July 2013. Web. 02 Dec. 2016.

"Should the Federal Minimum Wage Be Increased?" ProCon.org. ProCon.org, 09 Nov.

2016. Web. 02 Dec. 2016.

"Wage and Hour Division (WHD)." Department of Labor. US Government, 2009. Web.

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Dec. 2016.