With the economy in a rough position, raising the minimum wage would help those struggling with financial problems. Raising the federal minimum wage would promote growth and would have a positive effect on the overall economy. This effect will come from promoting job growth, thus industry growth as a whole. With more people joining the job market and there being an elevation in the money there is to spend, increases would be shown in both gross national product sales, and an increase in taxes derived from sales tax.
Companies, corporations, the economy, communities, minorities, working women and taxpayers all benefit from minimum wage increases. The benefits are intrinsic and they are economic. For individuals, it helps them to maintain a higher standard of living. Raising minimum wages helps with expenses and lowers the number of people in need of public assistance to maintain their cost of living. The rent, the mortgage, child care, food, utilities, insurance, health care, clothing, entertainment, transportation, savings, investments, and education: these are all of the expenses that provide dignity to human life.
However, most of these items are exchanged at “market” rates that nearly half of the people living in the United States of America are unable to afford without assistance. An increase in minimum wage would also assist in welfare reform, and lower the number of persons receiving welfare, by making wages high enough to motivate people to work more, rather than stay at a low paying job and having to rely on welfare.
Increasing minimum wages can decrease the income gap between the working poor and the lower middle income. It is possible for people to make better lifestyle choices with a decent “living wage” pay scale. Those who are able to earn a wage that enables them to meet the cost of living are more likely to have a sense of pride and a better work ethic. A good work ethic carries with it diminished turnover and lower absenteeism on the job.
This will keep them motivated and feel more secure with them. Because so many more workers earn wages just above the minimum wage compared to those earning the minimum, even a small ripple effect considerably increases the number of workers who benefit from a rise in the minimum wage. Even through the size of these raises quickly shrinks the higher the worker’s wage rate, the greater number of affected workers translates into a significantly larger increase in the wage bills of employers.
It may prevent the younger generation from getting a job because there may not be as many openings available considering that if the minimum wage were to be raised that higher positions may be cut leaving less room. Raising the minimum wage will improve the cost of living, support families and also create healthier lifestyles. Rather than living on paycheck to paycheck, raising the minimum wage could put extra money into someone’s pocket especially when our economy is in such a crucial state. It will motivate those who do not have a job to go out there looking for one.