Minimum Wage, Time For A Raise?

Lately, there has been a lot of talk about raising the minimum wage. Because it would affect the economy greatly if we did raise it, there has been a great deal of controversy targeted towards the issue. The article Time for a Raise? by Patricia Smith explains the problem and some people’s ideas about what the solution should be. Many people think it should be raised because it will benefit many people who work undesirable minimum wage jobs. Others think raising the minimum wage will present new problems to the economy of the US.

 

Smith’s starts off by explaining some problems with the current minimum wage. She explains that although most think the people who earn minimum wage are mostly teens working a summer job, the truth is that more than a fourth of minimum wage workers are 25 years or older, with a family, and working full time, possibly with another job. Many Americans say that raising the minimum wage would relieve some of the financial stress on these families and would reduce that poverty rate. However, some US citizens tell a different story. The other side of this argument is that, by raising the minimum wage, we will ravage our economy. Apparently if we pay low-wage workers more money, companies have to pay all other employees a little extra and these little raises can add up quickly, forcing companies to keep shorter hours, lay off workers, or charge customers more (which will “scare them off”). This means that raising the minimum wage could cost many people their job.

 

In my opinion, Raising the minimum wage a little would be a good idea. Certain states (Washington, California and more) have already raised their state minimum wage higher than the federal level and are doing fine economy-wise. As well, doing this could help to reduce our poverty rate; according to The Economic Policy Institute, increasing the minimum wage by $2.85 would allow 28 million workers to earn an extra 6,000 dollars a year. When you look at the facts, the good things about raising the minimum wage seem to outweigh the bad.