The Maximum Importance of Minimum Wage
When people think about making it in America they think about the achieving the American Dream and making it to the Middle Class and higher, but for most Americans this is not the case. Around the country more and more people are struggling in the job industry because of minimum wage.
Minimum wage isn’t enough to provide for a sustainable lifestyle leaving people to find multiple jobs just to keep up with their rent along with enough food and clothes. A way to fix this is by changing the minimum wage.
The book “Nickel and Dimed” goes over this exact subject. Barbara Ehrenreich studies our economy by starting over again and living off minimum wage. Though the book was published a little over 30 years she still experiences similar lifestyles of our lower class today. Proving not much has changed since then and ultimately bringing up the question why?
A study done by “TheRedPin” shows that the “each decade has ended with a smaller share of adults living in middle-income households than at the beginning of the decade”. In the 1970’s 61% of American were middle class and in 2015 there is now 50%. As of now, affording the American Dream is harder than ever to afford, and home ownership is lower than ever. An American would have to earn up to $800 more a month to achieve the country’s dream.
If you’re wondering why no one is helping to fix this, people already have, in other Countries. The average Joe in countries like Saudi Arabia and Oman are much closer to financing their goals.
The reason why we aren’t finding a way to fix this is because opposers to reforming the minimum wage argue that however well-intentioned it may be, wage increases change the labour market into giving employers a reason to make use of fewer workers. But this may not be the case.
Five months ago Representors of McDonald’s and Subway shops, The International Franchise Association sued the city of Seattle for imposing new wage rules. When it was taken to supreme court they refused to hear the business leaders appeal. So now cities can legislate for higher wages.
And some states could have repercussions from increased minimum wage because by their standards it’s already high enough. For example some states had to raise their minimum wage to federal minimum wage by $1 and others all the way up to $2.50.
An article written by Andrew Soergel claims that “people who are inclined to think minimum wage has these kinds of effects think that my study is obviously correct. And people who see things the other way think there’s some sort of fatal flaws to the analysis.”
Referring the the study on increased wage’s effect on decreasing jobs. He concludes in his estimates that the low-skilled workers in the states in which the minimum wage went up saw larger declines in their employment rates. He is correct about federal wages distorting job opportunities, but with flaws on a full scale finding no evidence on employment.
So what’s the best way to fix the decades old issue that’s a compromise for both sides? Mr. Trump prefers to could abolish the federal wage all together and let states be free to set their own limits. “I’d rather have the states go out and do what they have to do”, he said.
Minimum was imposed by Fair Labor Standards Act of 1938, signed by FDR. And since then its been increasing, helping and hindering parts of the economy. Though it was a great during the Great Depression, it’s time to adjust. Area influenced wages will find a comfortable amount to satisfy their own rent, taxes, minor and major businesses, and workers skill ranges.
What if we think out of the box, instead of raising wages again?
Grayson Marceau, a reader of “Nickel and Dimed” and a concerner of the American Economy
