Currently our economy is facing problems, the implementation of an increase wage rate would boost the U.S economy and help Americans who can’t earn a steady income. Over time this would increase labor productivity. Right now it is crucial so that American workers can be paid a sustainably rate hourly. The term minimum wage was introduced in New Zealand in the 1890’s at $0.25 per hour for workers to earn low pay on an hourly basis. As time progressed the rate changed over twenty times and inflation had increased causing the standard of living to increase and millions of Americans to live at the poverty line.
There has been an ongoing debate as to whether or not minimum wage should be raised to $15 per hour. At the current of $7.25 per hour, millions of Americans are unable to make a living. Since the presidential election of 2016, Bernie Sanders has pushed for the increase to the federal level. Recently the company Amazon has increased it’s hourly rate to $15 for it’s workers in order to establish a living wage. Economically this would benefit the nation and workers entirely. Opposers believe that this increase will affect job market for young millennials. The debate over minimum wage raises the question “Should Congress pass a law to increase minimum wage? I agree because a person working forty hours a week on minimum wage should be able to earn enough to pay for basic living expenses, the outcome of the new minimum wage would help Americans living in poverty line be financially stable, economically grow the job market, and expand major company’s productivity that would reduce worker turnover/absenteeism for employees. However the job market for young millennials would be negatively affected. Essentially benefit the nation and workers entirely.
If minimum wage were to be established as a living wage a different rate of pay, workers would be able to financially support themselves rather than relying on government assistance. With the minimum wage being set nationally at $7.25 per hour, it would be impossible to have a standard of living because inflation increases each year causing prices to go up. “With $15 an hour instead of her current $10 hourly wage, Newsome said, “I would able to meet that light bill every month” (qtd. In McDermott, Ocasio 2). When it comes to point where an individual earning minimum wage and has to decide between paying bills or buying food it’s the reality they have to face. Passing the Fair Minimum Wage Act would resolve earnings for tipped employees and “Give a raise to 16.5 million people currently working for less than $10.10 and lift nearly 1 million Americans out of poverty” (“U.S Rep. 1”). One major company took action to solve this nationwide problem, Amazon had recently increased the company’s minimum to $15 per hour for employees on November 1st. “Amazon is trying to close the gap in the labor market” (Barstow 1). Despite the criticism being faced, Amazon want lend a hand to the millions of Americans working while living in poverty. “It represents a raise to about $30000 a year for a full-time worker, 20 percent above the federal poverty level for a family of four” (Snider, Weise 2). This is nearly double the nationally average salary an individual would make earning the current federal minimum wage. Creating an opportunity for Americans to support themselves and their families.
The minimum wage should be raised because it would boost the economy and create employment opportunities. If the increase was implemented Americans wouldn’t have to work two to three part-time jobs to make ends meet, benefitting millions of americans and getting out of poverty. An individual working only one job to be financially stable would growth the employment market, because the other part-time jobs would be open for individuals to work. U.S Rep. Castor said, “Increasing the minimum wage would create an estimated 85,000 additional jobs nationwide” (qtd. In “U.S Rep. 2”). At a fifteen per hour pay rate the job market would increasingly skyrocket creating nearly one-hundred thousand new employment opportunities and workers nationwide would see a percentile increase in earnings. “This would support nearly one in three Long Island workers in a pay raise” (McDermott, Ocasio 1). In addition to individuals earning more, they would have more money to spend increasing consumer spending. “It will create wealth in our economy. And it will increase economic activity in this country” (Hoar 3). This would boom the usage of goods and services and benefit both consumer and producer. The growth of minimum is one more step towards a secured economy where individuals will have a balance pay in order to keep up with inflation.
Not everyone agrees on the proposition that minimum wage should increase, the opposers see this as main focal point to the unemployment of young teens. The job market is affecting young teens at dramatically and is going downhill. Teen employment is an all time high and the primary cause is due to the increase of minimum wage. Millennials of today hardest task is to find employment, when wages increase employers cut out hiring teens and replace entry level positions with people that have experience. If teens were able to obtain a job whether it be in high school or college, this would give them a chance learn about active income and complete taxes. “Plus, having a job early in life can teach financial responsibility, such as how to balance a bank account and pay taxes” (Bubar 3). Teens obtaining work while in school is a huge opportunity because they are able to build experience and be financially independent for themselves. “The potential future of young teens are at risk, the amount of income earned as an adult can be significantly lower because the opportunity wasn’t given to grow over time and learn in the working environment” (Blahous 2). Millennials of today futures are going up and down due the job market they currently face and is affecting their adulthood. “May lower their expected income over the rest of their lives” (Blahous 3). Economically this is destroying the job market, making it more competitive and less attainable to acquire new skills. Resulting in the chance of getting hired unlikely. However increasing minimum wage would reduce the unemployment nationwide giving the unemployed workers a chance to find work and provide for their families, despite teen unemployment being high.
The effect of minimum wage on major companies would increase productivity and reduce work turnover/absenteeism. When the minimum wage grows employees are less likely to be absent because the mentality is that they are being paid a fair wage and physically want to work. The mindset is from pay is they receive is a sustainable amount. Jon Cooper the president of Spectronics Corp. said “If you pay employees fairly, you will have less employee turnover, and that reduces your training costs” (qtd. In Madore 3). This would save businesses money and be able to expand on productivity and meet consumer demand, which would increase profit margins and reduce costs on employment. If companies are able to pay the new minimum wage work turnover would be dramatically reduced, keeping existing employees to work the company.
President and Ceo of the Pennsylvania Restaurant and Lodging Association said “Don’t lose the employees you have, And the best way to not lose the employees you have is to take care of them” (qtd. In Barstow 3). Some companies have provided benefits for full-time minimum wage workers such as free health care and flexibility in schedules. “Glenn McFerran the district of Insperity said using those uncommon methods will bring value and attract employment” (qtd. In Barstow 2). The labor market would increase while the unemployment would drop, to preserve company workforce aid would be offered to full-time minimum wage employees and the job market would be in high demand.
The outcome of a new minimum would get millions of the streets and be able to have a standard living. Individuals living off government assistance wouldn’t have to depend on monthly aid, instead having a job where they receive a well balanced hourly pay. Americans that have been waiting for employment that or been laid off are able to find work in an increase job market. The economic boost would grow company productivity in the supply and demand market. Workers would be able to gain experience and acquire new skills essentially opening their opportunities in the world.