Pros And Cons Of Minimum Wage

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A Raise for Minimum Wage Increasing the nation’s minimum wage requirement could play an important role in strengthening the economy while helping low wage workers improve their quality of life. While the pay for American’s minimum wage worker remains stationary, the cost of living continues to rise. More and more families are relying on these front line jobs to provide for their families. In the State of the Union Address, President Obama claimed that he was in favor of increasing the minimum wage for workers under new federal contracts to $10.10 an hour, instead of the current $7.25 an hour rate. Increasing the pay of minimum wage employees will help restore consumer spending and in turn, power the economy. Local businesses need this…show more content…
The National Employment Law Project finds that about sixty-six percent of low-wage workers are employed by large companies or corporations, not small businesses. “It also found that more than seventy percent of the biggest low-wage employers have recovered from the recent recession and are recording strong profits, yet wages remains unchanged for their frontline employees. The minimum wage hasn't kept up with inflation, making those with families of three or more people well below the poverty level.”(National Employment Law Project) One group claims that by increasing the rate, small businesses will be strapped for making ends meet thus potentially having fewer available job positions. There is also the concern of having to layoff employees in order to make a profit. Another factor to consider is perhaps companies may have to raise the price of a consumer good or product to offset the increase in an employee’s wages. “The costs of living, especially housing, vary widely in America from state to state and city to city. If the point of raising the minimum wage is to provide a living wage, why should the minimum wage in low-cost areas such as Texas or Oklahoma be the same as in high-cost areas such as San Francisco or Manhattan?”(Stroll) Twenty two individual states have already realized the need to increase the minimum wage and have raise their current…show more content…
“Its purpose is to help bring back a more fair federal minimum wage, providing America’s lowest-paid workers with a much needed raise” (Congress). The act would raise the federal minimum wage to $10.10 per hour over the next three years. Each yearly increment would increase the rate by 95 cents. After the three years of this act passing, the Secretary of Labor would determine if it was necessary to increase the minimum wage rate based on the Consumer Price Index. For tipped workers, a minimum pay would be seventy percent of the most recent minimum

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