Pros And Cons Of Raising Minimum Wage

Raising Minimum Wage The idea of raising the federal minimum wage that has developed nation wide attention, including protesting and arguments, has caused many discussions on why it could potentially help the economy grow and how it could result in the crash of the economy. Many people feel like raising the federal minimum wage is a must, while others think it will destroy the economy. There are many benefits that come with raising the federal minimum wage, but those benefits also come with many disadvantages. The first federal minimum wage mandated by the government was in 1938. When the first minimum wage became law in 1938, it was set at just 25 cents. Today, the federal minimum wage mandated by the government is set at $7.25 an hour.

Like mentioned before, raising the minimum wage would allow millions of Americans to provide their families with basics needs and living expenses. With many Americans thousands of dollars under the poverty line, the low minimum wage forces these people to seek additional help from the government. Employee's surviving at minimum wage are also often the same people who must rely on additional support of government run social programs to support themselves and their families on such a small amount of income (Halvorson). Raising the minimum wage could also encourage many employees to work harder while feeling accomplished by getting paid more. A minimum-wage boost could improve worker morale, which could in turn improve productivity and help keep turnover rates down (Williams). Also, many Americans think that raising the minimum wage would boost the economy. “ Extra pay in the pockets of some 16.5 million workers could trickle down to retailers and provide a boost to the economy” (WIlliams). With these employees spending the extra money that they are receiving, sales are going to go up quite a bit. According to Halvorson, “If these minimum wage employees are spending

If the federal minimum wage was raised, many people would be making quite a bit more than usual. The American’s who are getting paid minimum wage wouldn;t be alone in having their salaries increased. Management and longtime employees of businesses who have worked their way up through pay raises would also likely have their pay increased to match their title and tenure (Williams). This could all cause the price of goods and services to increases to match all of this pay increase. If that were to happen it would negate the minimum wage increase and it could potentially hurt families in the middle-class who were doing fine providing for their families beforehand. “If businesses do not want to increase pay to all of their employees to counter the higher cost of wages, another possible outcome is that they simply cut employees or reduce benefits, such as paid vacations, reimbursed parking, or even gym memberships,” (Williams). Also, a minimum wage increase could damage a worker’s desire to work harder at what they do or to improve in their careers. Worker’s suddenly receiving more money than before might not want to go to college to seek a job suited for them. They could develop the mindset that working for $10 an hour at a fast