Raising Minimum Wage Benefits Everyone.
The discussion of raising the minimum wage is controversial to say the least. Many people have quite complex arguments why it should not be raised. The best way to argue for a raise in minimum wage is to use common sense. The crucial advantage of this approach is that the likelihood of persuading someone that the minimum wage needs to be raised is increased. So, without further ado, here are the simplest reasons minimum wage should be increased.
Inflation. The price of living continues to go up. Food, rent, clothing, childcare, and other necessities of life cost more every year. Some will say, ‘but, raising the minimum wage will raise prices.’ While this is true, the rise in prices would not be as severe as people suspect. For example, one study from Purdue University estimated that raising minimum wage to $15 an hour would raises prices at McDonald's an average of 4.5%. In this case, a Big Mac that costs $3.99 would cost 17 cents more at $4.16.
The second reason is lower taxes. Raising the minimum wage would cause less people to qualify for food stamps. As it stands, many minimum wage earners get healthcare as well as food, rent, and financial assistance from government welfare programs. One paper, from Berkley University, shows that raising minimum wage from $7.25 an hour to $10.10 would cause enrollment in food stamp programs to decrease by somewhere between 7.5% to 8.7%. Annual expenditures would decrease by $4.6 billion.
The third reason is that it will make the economy grow. When people make more money, they spend more money. If minimum wage is raised, people will have more disposable income to spend on things like entertainment, travel, and eating out. To meet this demand, businesses will hire more workers and sell more goods and services. With more money, people will also be able to pay their debts easier. This will lower credit rates for everyone. A Cornell University study from 2015 supports this Keynesian economics approach to minimum wage.
The last reason, in this discussion, is that raising minimum wage will encourage unemployed people to find work. People on assistance such as food stamps, welfare, and unemployment, will be more motivated to find work when they find out that the minimum wage is being raised. Raising minimum wage to $10 an hour may be the most reasonable option at this point. However, raising it to $15 an hour would be a more alluring carrot to incentivize people on welfare and unemployment to find work. For further details, follow this link to a Forbes article on the subject.
Thanks for reading. By all means, feel free to use any, if not all of the arguments in this article to convince others that the minimum wage needs to be raised. Even if the minimum wage is raised tomorrow, this information above will always apply. Thank you for reading.