Should the Federal Minimum Wage be Raised? In 1938, President Franklin Delano Roosevelt created the first minimum wage to promote the economy during trying times. Since it was first set at twenty-five cents, the federal minimum wage has been increased twenty-two times, the latest being in 2007 (Smith). Yet approximately fifty percent of Americans believe that the minimum wage should be raised again (“Should We Raise”). The federal minimum wage should be increased because it would decrease poverty rates, stimulate the economy, and inflation has surpassed current wages. A raise in the federal minimum wage would help pull millions of Americans out of poverty. Currently, there are over forty-three million Americans who live beneath the poverty line (“Should We Raise”). Of those in poverty, many are trying to support themselves, as well as their families, while living off of a minimum wage job. But this is a demanding task because the low wages are not enough to sustain an entire family, what with the costs of healthcare, schooling, and child care. Furthermore, the current federal minimum wage, set at $7.25, is not considered a living wage that people can survive off …show more content…
Admittedly, if wages were to increase, smaller businesses may not be able to afford as many employees. This could result in businesses hiring less people and laying off other. If this happens, then there will be more unemployed Americans who fall beneath the poverty line (“Should the Federal”). However, with an increased minimum wage there would be more people who have a higher income than people who are unemployed. In fact, according to a study by Alan Krueger and David Card, there was “no indication that the rise on minimum wage reduced employment” (“Should the Federal”). Thus, a higher minimum wage would not increase poverty in America, it would decrease