Raising Minimum Wage in the U.S. Many people working lower end jobs are unable to live a fruitful life due to the low current minimum wage rate in the United States. The current federal minimum wage rate in the United States is $7.25 per hour, which was established in 2009. “The Federal minimum wage of $7.25 per hour is far too low. A full time worker- 40 hours per week for 52 weeks- earning the minimum wage is guaranteed to live at the poverty level.” (Pacitti). For example, the average rent price for a one bedroom home in the Tri-Cities area is $550.00 a month. If the individual is working a full time position at 40 hours per week and the minimum wage rate of $7.25 an hour, he or she will bring home roughly $1,000 a month after taxes. If …show more content…
“In his February 2013 State of the Union Address, President Obama proposed to increase the federal minimum wage from $7.25 to $9.00 per hour and to index this increase to inflation.” (Carson). It has been a constant argument that raising minimum wage by $1.75 would cause an issue of inflation. By raising minimum wage, many fear it will cause the price of products to increase in order for businesses to compensate paying their employees a higher rate of pay. Some citizens are afraid that grocery, gas and housing expenses will just rise as a counter affect to the raise of minimum wage. Another argument regarding the increase is that it would mostly affect the young portion of our work …show more content…
The benefits of raising minimum wage are substantial according to the resources. The employee benefits by being properly compensated for their services. The employer will benefit by receiving a more stable work ethic from the employee along with a high production rate. The government will be benefit by reducing the deficit by putting less tax dollars into the government funded assistance programs utilized mostly by those who are unemployed or making minimum wage. An increase in the Federal minimum wage will do far more good to our economy than