(CBO) 7. Minimum wage lost 30% of its purchasing power over the past decades, according to Jack Temple, a policy analyst at the National Economic Policy Inst... ... middle of paper ... ...conomy, families, and people in poverty, the vote should be with raising minimum wage. C. With this many positive effects, I see no way to turn this down. Works Cited Berman, Jillian. "A $10.10 Minimum Wage Could Lift About 5 Million Out Of Poverty."
We would be paying more money for less products or services to compensate for the higher wages paid. A study done by the Employment Policies Institute, found that each 10% increase in the minimum wage boosted quick-service menu prices by 1.6% and could reduce employment by as much as 2.5% (Hsu 2013). Based on those figures, a higher minimum wage could cause as much as a 17% surge in fast-food prices and a nearly 27% slide in employment (Hsu 2013) Should minimum wage be higher? The debate of the ages that I feel doesn’t have a right or wrong answer. Everyone has their own opinions, views, and thoughts about who benefits from a higher minimum wage, who is harmed more by higher minimum wage, and the list goes one.
No one who works full time in one of the wealthiest nation on earth should have to raise a family in poverty. Every day for low wage workers is filled with struggle and anxiety. People are making heartbreaking decisions on which bill to pay, which meal to skip, and whether to buy a gallon of milk or a gallon of gas. The national minimum wage of $7.25 per hours is low. It has remained unchanged for five years while the cost of food, utilities, transportation, and others have risen.
In recent years the minimum wage has been a heated topic. People want to hike it up to 15 dollars an hour which they call a living wage, while others just want to keep it the same. There are also others that suggest to bring the minimum wage to around $10.78 an hour, which should be around the minimum wage now if we account for inflation from the 1960’s. I agree with that to a certain point. We as a nation need to bring up the minimum wage only up to ten dollars so that less people are living in poverty, and not any higher so that states with smaller economies don 't crash and burn.
This take time and also studies to make sure the United State business can afford to pay more. But also now that minimum wages is only $7.25. Now, somehow the President and Congress think that a low-income family can live off less than $15,080 a year in 2012, according to David and Doug. Minimum wages did not fall pass the poverty line till about 1980. But also the value of a dollar was worth way more back then.
Minimum Wage Currently, in the United States, the federal minimum wage has been $7.25 for the past six years; however, in 1938 when it first became a law, it was only $0.25. In the United States the federal minimum wage has been raised 22 times since 1938 by a significant amount due to changes in the economy. Minimum wage was created to help America in poverty and consumer power purchasing, but studies have shown that minimum wage increases do not reduce poverty. By increasing the minimum wage, it “will lift some families out of poverty, while other low-skilled workers may lose their jobs, which reduces their income and drops their families into poverty” (Wilson 4). When increasing minimum wage low-skilled, workers living in poor families,
About eight million Americans go to work every day, yet they are still living below the poverty line (Camden and Stern). More than one million of them are retail workers. If the minimum wage was to escalate, 734,075 people would be lifted out of poverty. Also the 769,191 people that are living on or near the poverty line would see their incomes go above it by 150 percent. These workers are struggling to provide basic necessities for their family and themselves.
Senator Tom Harkin made a great statement regarding inflation senator Harkin said "today, tens of millions of hardworking Americans who are earning at or near the minimum wage can’t even aspire to live a middle-class life or achieve the American Dream. Instead, they are falling further and further behind" (Harkin). This is because of inflation, although minimum wage has increased from $1.60 in 1968 to $ 7.25 in 2013 we actually have less buying power. What that means is that $1.60 in 1968 would get us more food than $7.25 would in 2013. People are tricked into thinking that small incremental increases are good because we are making more, guess what we're actually making less.
But according to the National Employment Wage Project, “if the United States would have kept up with inflation over the past 40 years, the minimum wage would be $10.74 an hour.” That is $3.49 more than the minimum wage is now, which would be $7,259.20 more a year (before taxes). By raising the minimum wage, it would stimulate the economy in many ways. It would “increase the purchasing power of many workers whose wages would also go up” according to the article Raising the minimum wage: Guide to Critical Analysis. Another way that it would help the economy is that it would decrease the amount of people that would need government welfar... ... middle of paper ... ... Oct. 2013. . Jacobs, W.E.Hoagland, Steve.
Minimum wage in 1938 was $1.60, which may seem like very little to workers currently; however, this amounts to roughly $10.70 in 2013 (Rebuilding an Economy). This shows that the minimum wage has lost a lot of value since previous times due to the rising cost of living. The current minimum wage in America is $7.25, which is hardly enough to keep fo... ... middle of paper ... ...1012. Web. 4 Dec. 2013.