The Minimum Wage Should Be Increased

1645 Words7 Pages
Congratulations on your victory in the 2016 Presidential race. On the campaign trail, you were uncertain about your stance on whether to increase the federal minimum wage. You stated on one occasion that you were in favor of increasing the minimum wage at the state level but then you switched your position later saying that the federal minimum wage should be increased. The purpose of this letter is to convince you to support other policies that will generate economic growth instead of raising the federal minimum wage because a majority of people experiencing poverty are unemployed. Therefore, I believe that the federal minimum wage should not be increased because it results in job losses, reduces hours for workers, and stunts job growth. The minimum wage increase might benefit a few by bringing them out of poverty, but I do not think that the positive effects out ways the negative. Rather than benefiting a few by raising the minimum wage, we should enact policies like reducing the corporate and capital gains tax to encourage the creation of higher paying jobs, which would in effect reduce poverty. Although increasing the minimum wage would likely benefit some people, there are many unintentional consequences to doing this. According to the Congressional Budget Office, a nonpartisan government agency that advises the congress on economic issues, raising the minimum wage to $10.10 would result in bringing 900,000 people out of poverty. On the surface raising the minimum wage would seem like a great idea because it could bring hundreds of thousands out of poverty. However, under closer examination, the CBO also concludes that a $10.10 minimum wage would also result in a reduction in “total employment by about 500,000 workers, or 0.3 ... ... middle of paper ... ... in less working hours for the workers. It is not an efficient policy to reduce poverty because it unintentional effects of causing more poverty. The main cause of poverty in the United States is joblessness and part-time work, not necessarily the amount someone earns. I think a more effective way of reducing poverty would be to support policies that promote job growth. Such as reducing the corporate and capital gains tax rates, which would lead to the creation of higher paying and full-time jobs. As President, you exercise considerable influence over the agenda of congress and the domestic policy of the nation. You could draft a bill that reduces taxes on corporations and capital gains to reduce poverty, and have a member of congress introduce the bill during next year’s session of congress. I hope you will consider my proposal, when you take office, and good luck.

More about The Minimum Wage Should Be Increased

Open Document