Written By Patrick Fritz
Recently President
Barack Obama proposed the idea of increase minimum wage from $7.25 an hour to $9.00
in stages by the end of 2015. It would also rise to the inflation rate if it
were to increase. This bill according to Obama would allow consumer spending to
pick up a little, and help the economy. If this bill were put into place it
would help and estimated 15 million workers who have minimum wage jobs. Raising
minimum wage would also have big effect on students that are working to pay off
college. If this were to be approved it would help out thousands of students
help pay for their college tuition, which is extremely expensive. People with
lower income jobs would increase
the yearly income to $18,720 for a full-time minimum wage worker. Even with an
increase it would still leave a family of four short of the poverty level of $23,050
a year.
I feel that this bill needs to
be passed as it would not only help the lower income workers, but it would also
help boost the economy and increase consumer spending. Economists at the Chicago Federal Reserve
estimated that a $1 increase in the minimum wage would raise consumer spending of
low income families by an average of
nearly $5,000 a year. This is one way that it could help boost the
economy as it would add an estimated 70 billion dollars in consumer spending. If
people have a little extra money they would be more willing to spend it which
would help the economy. Barack Obama said, “It could mean the difference
between groceries or the food bank, rent or eviction, scraping by or finally
getting ahead. For businesses across the country, it would mean customers with
more money in their pockets…” This is a perfect quote to describe the positives
of increasing the minimum wage.
Although I believe that
increasing minimum wage should be increased there are some facts that support
the people who don’t want it to increase. One major issue that comes up is the
fact that it could increase the unemployment rate. The reason this is thought
to happen is that many companies who are based on minimum wage workers such as
Pick n Save or Wal-Mart won’t want to have to pay all their workers more money.
So in order to keep the profits from going down they will not hire as many
people and let some people go.
Despite a few cons that come
with increasing the minimum wage, the immense amount of pros is something that
can’t be passed up. This bill would help out the economy and give hard,
deserving workers a bit of a raise to make their life a little easier. Students
would also be personally affected by this because the majority is working
minimum wage jobs to pay off college tuition. Also because of inflation the
minimum wage has lost some ground that peaked at $10.41 in 1968. If the minimum
wage was ties to inflation since then the minimum wage would now be at $16.50
an hour. This is shows how little some workers are getting paid and why the 15
million people who are receiving minimum wage deserve a raise.
Sources:
- "Obama Pushes for Increase in Federal Minimum Wage - NYTimes.com." The New York Times - Breaking News, World News & Multimedia. N.p., n.d. Web. 19 Apr. 2013. <http://www.nytimes.com/2013/02/13/us/politics/obama-pushes-for-increase-in-federal-minimum-wage.html?_r=0>.
- "Obama's latest stimulus plan: raise the minimum wage - Economy Watch on NBCNews.com." Breaking News & Top Stories - World News, US & Local | NBC News. N.p., n.d. Web. 17 Apr. 2013. <http://www.nbcnews.com/business/economywatch/obamas-latest-stimulus-plan-raise-minimum-wage-1C8350755>.
- "Stand with President Obama: Raise the Minimum Wage | LeftAction." Home | LeftAction. N.p., n.d. Web. 19 Apr. 2013. <http://leftaction.com/action/raise-minimum-wage>.
- "Obama proposes $9/hour minimum wage. OK, says business owner. - CSMonitor.com." The Christian Science Monitor - CSMonitor.com. N.p., n.d. Web. 19 Apr. 2013. <http://www.csmonitor.com/Business/new-economy/2013/0213/Obama-proposes-9-hour-minimum-wage.-OK-says-business-owner.>.