With the workforce so disproportionally represented, these workers with the lowest paying job will greatly benefit from the change. In conclusion, a federal minimum wage increase will significantly improve the standard of living of low-wage workers. To meet their basic needs, workers must be given a living wage. It is not only morally correct to do so, but also beneficiary to both ends. The increase in wages allows for a more supportable income, but it also stimulates the economy.
Raising the minimum wage would help expand the economy because it puts more money in the hands of the consumer, it can reduce poverty rates and gets rid of income inequality as well. One reason that raising minimum wage would help the economy is that it gives a change in income. Generally, an increase in income increases the demand for goods at all prices. If a worker has more money due to a raise
Raising the minimum wage will allow society to keep up with inflation, extract people out of poverty, and stimulate the economy. Even though there are some negatives to increasing the wage, many of the opposing arguments have been found to be false or even have had the opposite effect. Increasing the wage will be beneficial to the workers as well as the businesses, making the wage increase a positive change in the United States economy.
If businesses are earning more, they will need to hire more employees to keep up with the increased sales from the minimum wage consumers who have increased the spending because they have higher earnings. This in turn causes businesses to sell more products. If a business has a jumpstart to more sales, they may discover that they need more employees, producing more job opportunities. Causing employers to recruit more employees to supply the demand of labor, which will be needed due to the increased sales. Currently, the Government provides millions of house with some type of assistance.
So one possible effect of raising minimum wage to $15.00 is that people will initially start spending more on the things they love because they can afford them now. So yes, more money is flowing through the economy but is it enough to balance out? Take in consideration that the Utility Maximizing Model is a Ceteris Paribus based theory so this nor fact or false, it is an
The only reason I was able to reduce my spending in gas was because of the price of gas going down. I spent exactly twenty dollars on gas, which lasted me for a week based on my daily routine. Since the price of gas has gone down I’ve been saving four to six dollars a week. Currently I live with my parents so I don’t worry about buying groceries, but I spend a lot on junk food and sodas. Since tracking our spending I’ve given myself a budget of forty dollars a month for groceries.
Many people, form state legislators to various interest groups, in the United States are advocating increasing the minimum wage. There are several reasons for this, including the thought of it boosting the economy out of recession. Some other reasons are that it will improve the standard of living, boost consumer buying power, and provide a more stable and productive workforce. While these reasons are good in theory, raising minimum wage can be detrimental to small businesses and the economy. While earning more money is a positive thing, the negative of job losses are bigger.
The minimum wage is a large-scale reason of poverty. The federal minimum wage should be increased because raising it would increase the economic activity and spur job growth, decrease poverty, and also improvements in productivity and economic growth have outpaced increases in the minimum wage. Increases in job growth and economic activity will happen when the minimum wage is elevated. If the minimum wage was increased it will “inject 22.1 billion net into the economy and create about 85,000 new jobs over a three year period”. (“Raising the Federal minimum Wage to $10.10 Would Lift Wages for Millions and Provide a Modest Economic Boost") Thousands of new jobs will be created and it will put billions of dollars into the economy.
Well clearly some states should differ from others because the cost of living is much higher in states like New York versus a state like Virginia. A dramatic increase to 15.00 minimum wage is risky, and could prevent more problems, so the trick is finding the right balance to boost the economy and not create more job loss for Americans. Alan B Krueger
Sanctuary cities are extremely beneficial to the economy. According to University of California, Davis economist Giovanni Peri, states with higher populations of undocumented immigrants tend to have skilled workers who make more money and work more hours, resulting in increased productivity (2013). Higher wages lead to more money being put back into the economy because workers have more capital to spend. In addition, higher production rates means lower prices. This profound effect is a result of undocumented workers.
By 1943, the Labor Department had raised the federal minimum wage to forty cents an hour. In 1955, the minimum wage was raised to $1.00 an hour. Since, then the federal minimum wage has been 22 times by 12 different presidents. As of 2009, the federal minimum wage has been $7.25 an hour. (The History of Minimum Wage Laws, 2014) In the chart provided below shows the minimum wage pay scale as the year extended, starting at $0.25
This could lead other shops and industries to raise their prices as well. This would result in a higher cost of living and eventually lead to another push to raise minimum wage once again. It could be argued that by raising the minimum wage people will have more money to spend and therefore businesst activity will increase. This theory is not valid because the weakening of the workforce would greatly outweigh any benefit obtained by people whose wages were raised by just three dollars. “Some policymakers may believe that companies simply absorb the costs of minimum wage increases through reduced profits, but that 's rarely the case.
Increasing the minimum wage can be a component that make the economic stability, because it is beneficial to the labor market by providing more job opportunities and also the business by raising employee performance. In the case of the minimum wage had increased, low paid jobs have higher paid, then more people are willing to work that kind of jobs. Therefore, the humble jobs or other low paid jobs can hire enough people, and provide work opportunities. In fact, increase minimum wage will not increase unemployment, and in contrast, people will have more work opportunities. It is because economist had proved that increasing the minimum wage will not affect unemployment, and also some business such as retail store will hire more people when more people are willing to buy goods.
There are many effects of raising minimum wage to the U.S. economy in both negative and positive ways. When minimum wage is increased, it is supposed to help improve the lives of the workers and their families since they will have more income. It is especially meant to help lower income families. This is great for those families, but the company and economy can suffer from this. When minimum wage increases, companies have to pay more to their workers.