President Roosevelt and members of Congress adopted the Fair Labor Standards Act in 1938, establishing the federal minimum wage of twenty-five cents an hour. The minimum wage has been raised twenty-two times since then. The current minimum wage is not based on inflation, consumer price indexes (CPI), or cost of living. Minimum wage has decreased in value due to it not being raised to keep up with inflation, CPI, or cost of living. Minimum wage should be increased and at some point be adjusted regularly to keep up with inflation, CPI, or the cost of living.
Raising minimum wage is good for people, businesses, and the economy. More than half of minimum wage earners are under twenty-five years old. Also most minimum wage earners are near or below poverty levels. Raising minimum wage makes people feel good, boosts their morale, and increases their income. People who make minimum wage usually don’t save their money, they spend it. Therefore; a boost in minimum wage means a boost in their spending. This directly results in more sales and businesses making more money.
If businesses are making more money, there’s more demand, and profits are higher they hire more employees. Hiring more employees puts more money into the economy and reduces the unemployment rate. All of this directly impacts the economy in a positive manner. Longfoot 2 Many cities, counties, and states already have minimum wages that are higher than the federal minimum wage. These specific areas have chosen to make their own “minimum wage laws” or “living wage laws”.
These areas have proven that increasing wages regularly to reflect inflation, CPI, or cost of living will result in a positive effect. They have produced lower unemployment rates then national unemployment rates as well as lower unemployment rates than others within their states. Also these areas have proven to have higher job growth, increased business profits, and more businesses established. Increasing minimum wage will benefit businesses, corporate America, and the wealthy.
During the last century the incomes of the wealthiest Americans and corporate businesses have continued to rise substantially while the incomes of the lower ninety-nine percent of Americans has declined, stayed the same, or risen very minimally. Increasing minimum wage will benefit all. As minimum wage rises wages in other professions also rise. The rise in income levels historically results in increased profits across the board to businesses, corporate America, and the wealthiest Americans. Many will argue that raising minimum wage will result in job losses, increased unemployment, and businesses leaving.
This is not true. Most businesses who employ minimum wage workers are restaurants, hotels, retail stores, bars, and others like these. Those who argue this point are usually the owners of these businesses simply because they don’t want to increase payroll costs. These businesses are not going to close or move. If they did another business just like it would move in and take their place to reap the profits of the local area. History has proven that these business do not end up reducing employees, closing, or moving to another area. Longfoot 3.
Most Americans believe and support raising the minimum wage. Generally all groups encompassing race, religion, culture and politics agree except corporate businesses and some republicans. If most Americans believe in, support, and want a minimum wage increase then give it to them. Our government is supposed to be of the people and for the people. We should do what is going to do the most good for the most people not what corporate businesses, lobbyists, and some politicians want. Raising the minimum wage is a benefit to all Americans and the right thing to do.
Increasing the minimum wage has happened twenty-two times since its induction. When minimum wage is increased it has proven to have an overall positive effect on all. The majority of Americans support raising the minimum wage. Increasing minimum wage will not result in reduced business, rising unemployment rates, and businesses leaving. Minimum wage should continue to rise and be based upon inflation, CPI, or cost of living. This would ensure that the value of minimum wage doesn’t decline to a point well below poverty levels.