Minimum Wage Vs Living Wage Essay

For many people, they wake up in the morning to go to a nine to five job. Some of these people work 40 hours a week only to earn around $7.25 per hour. That is the federal minimum wage, and it is unconscionable. Earning fifteen thousand a year is a surviving wage. If the wage was increased, these people would live more comfortably. There are many pros that come with a living wage: improved worker morale, a boost in the economy due to consumer spending, reduced government welfare spending, and better living standards. Firstly, if the minimum wage was increased to a living wage, then millions of people would have more money to spend at firms. An increase in consumer spending would mean a boost in the economy. This is evident in a study done by David Cooper and Doug Hall which estimated that a $2.55 increase in the minimum wage would result in GDP increases. Some people might argue that it does the opposite. However, currently, the

The National Low Income Housing Coalition made a report in 2015 which showed that minimum wage workers are unable to afford one-bedroom housing unless their wages are more than double the federal amount. In addition, a poll was done by Oxfam America in 2013 that found more than half of US workers earning less than ten dollars an hour claim they struggle to meet basic living expenses. Half of those polled were worried about being able to buy necessities like water, food, clothing, and sanitation. However, according to a Congressional Budget Office report in 2014, thousands of people can be lifted from poverty if the minimum wage was to increase by just a dollar. If people were able to pay for basic expenses, then there would be less reliance on the government to provide for them through programs. That means less money would be taken out of the pockets of citizens through taxes to pay for things like low-income housing