Minimum Wage Being Increased to $15

For many years, the United States government has received protests from workers union over the rise in wages. The term minimum wage refers to the amount of money that must be paid to workers by their employers according to the set country labor laws. Currently, in many states, the minimum wage established by the federal government is 7.25$ (Formby, 601). For many, this minimum wage is never enough to support their needs. In fact, many citizens never satisfy their needs and live within the poverty lines. The notion that increasing the minimum wage to 15$ will paralyze the job sector is incorrect. The truth is that raising the minimum wage to 15$ will attract many applications from individuals who are talented in various business sectors. The federal government is aware of this situation but is not willing to take active measures. Some political groups have advocated for the increase in the minimum wage. I support this idea by some individuals and entities in advocating for the rise in the minimum wage to 15$ for the reasons that follow in this essay.

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One of the reasons as to why I support the raising of the minimum wage to 15$ is because it will improve the economy of the country. For the American dream to be achieved, the wages should be raised by the federal government to 15$. People are only motivated by good pay rise which will increase their efficiency and motivation to work. Policymakers agree that implementing this proposal will become very efficient for a country. Increasing the minimum wage will control the cost of businesses by reducing employee turnover, which will, in turn, increase the overall productivity of an economy. Furthermore, increasing the minimum wage will mean that the employees spend their new salary in the local economy which will impact the national economy positively. Anything that is less than 15$ should be considered as a poverty wage. This is because the money that workers are paid hourly does not assist fully in their needs. With the increase in minimum wage to 15$ individuals can find capital to start up profitable businesses that will attract customers and, in turn, contribute to the stabilization of the countrys economy. Countrys that pay their workers adequately have a higher Gross Domestic Product as compared to those that pay minimal wages (Kocer, 302).

Policy experts argue that increasing the minimum wage will cut poverty levels and improve the living standards of the people. This is true since those few individuals that earn wages above 15$ an hour live better lives than those who make lower than that. Without enough money, individuals cannot find better schools and healthcare. In America the CEOs of companies receive close to 300 times the salary of the average worker. This creates a significant gap between the rich and the poor which eventually causes class conflict. The increase in crimes, prostitution, and abuse of drugs occur as a result of minimum wages that cannot offset the burden of the citizens. People seek other ways of earning an extra penny for them to make their ends meet. There will be no effect at all on job creation if the minimum wage is increased. There is evidence from the International Monetary Fund (IMF) that low wages suppress economic growth. Increasing the minimum wage will reduce income inequality as seen from the salaries of Chief Executive Officers as compared to their employees. The need to increase the minimum wage has become a debate for politicians and lawmakers. Some of the individuals that are fighting for power in the government are seeking support from their people to help push for the increase in the minimum wages.

When there is an increase in the minimum wage, the individuals can save the government money. The government taxes all the workers in a country and workers can quickly pay tax if there is a good salary. Some workers have been found to evade tax due to the amount of money that they receive. For instance, individuals who earn the necessary 7.25$ an hour that is set by the government do not fulfill their needs since they are also required to pay government tax at all times. In America, cooperate companies make billions of dollars in revenue but pay their workers dismally (Kocer 366. What follows next is that workers lose touch with those businesses and look for other firms that pay reasonably. When a company increases the minimum wage for their employees, their business usually becomes successful. Some of the companies that add pay to their employees always become successful. Examples of successful enterprises that pay their employees well are Costco and Gap. So why are these two companies successful? It is important to note that good pay per hour attracts many talented individuals with requisite skills. These workers will do whatever they can to bring success to their company. Different countries have their means of calculating minimum wages with governments stipulating their regulations based on National Minimum Wage rate. These rates depend on ones age and level of apprentice

A look at the effects of increasing minimum wage dates back into the 1930s when the minimum wage became established during the great depression. The basic wage at the time was 25 cents, which consequently eroded in value due to the constant inflation rates that continued to affect the economy of America. Cash flows in the country will be localized, contrary to the art of paying other stockholders who live away from their countries. Social safety programs would be more stable assuring aging workers that they are set to benefit from the increased prospects of minimum wages. Governments are also tasked with the responsibility of balancing the lowest wage so that the taxpayers too, do not strain in the entire process. A 30% boost in the workforce guarantees stable income generation in the form of taxes that government would likely impose on the workers (Formby, 601). However, people can only enroll for government jobs if the wages are attractive. The public officials who are caught up in scandals and corruption always have excuses of receiving inadequate wages that cannot meet their needs and requirements. In the United States of America today, there is an increase in rent in the housing sector. This increase poses a challenge to the poor workers who earn less than 15$ an hour which prompts them to do other odd jobs to supplement their small salaries. In summary, the minimum wage set up by the federal government should be reviewed, and changes made to it for the benefit of all.

Works Cited

Formby, J. P., J. A. Bishop, and H. Kim. "The Redistributive Effects And Cost-Effectiveness Of Increasing The Federal Minimum Wage". Public Finance Review 38.5 (2010): 585-618. Web.Kocer, Ruya Gokhan, and Jelle Visser. "The Role of the State in Balancing the Minimum Wage in Turkey and the USA". British Journal of Industrial Relations 47.2 (2009): 349-370. Web.