An estimated 13 million workers would be directly affected and benefited from an increase in the federal minimum wage. An estimated 1,229,000 single parents supporting over 6 million children under 18 would benefit from a minimum wage increase. 59% of the people that would benefit from the increase are women and 16% are African America (Appelbaun). Only a few years ago, in 1998, 1 in 3
U.S. workers had wages below the poverty level (Haley). The benefits of a minimum wage increase far surpass the few disadvantages it creates.
Minimum wage laws in the
U.S. began in 1938 when Congress passed the Fair Labor Standards Act (Alderman). This mandated the minimum wage of the time, which was 25 cents and stated that hours over 40 were considered over-time and were to be paid no less that time and a half. This at first angered all of the large companies and corporations because it was inevitably making them loose money. They were going to have to raise their employees’ pay rates. They were also angered because this was showing that the Congress was able to control aspects of interstate commerce. They now had a minimum that all of their workers had to be paid, regardless of their abilities, duties, or job description. On the other hand, this was very beneficial to the workers because they now had a minimum pay rate that could not be broken. Before, they would work so hard and so long for very little compensation. Although this was one of the most positive aspects of the time for all of the workers, it was still a minimum wage, the bare minimum to be able to sustain life.
Over the years, the minimum wage has gone up as inflation increases and as the spending power of a dollar goes down. Today, the federal minimum wage is $5.15 and has been ever since 1997 (Woodward). The equivalent of $5.15 now is $3.95 back in 1997 when the minimum wage was $4.25 (Appelbaun). This shows that the minimum wage is not increasing enough to compensate with the rise of inflation. The minimum wage should be raised to a category where it could be called a living wage, that is, the wage is enough to cover simple living expenses. $8.50 an hour is needed to bring a family about poverty level and most economists agree an acceptable living wage would be just about that, about $8-$10. This would give the people who really need it, financial freedom. Of the people currently receiving minimum wage pay, only 26% of them are 16-19 years old, while 47% of them are 25 or older (Woodward). This shows that the majority of people receiving minimum wage are not just teenagers trying to get some spending money to go to the movies, they are people that are trying to make a living with some sort of rent or mortgage payment, insurance bills, and countless other expenses. People over 25 need to have a sufficient amount of money to be able to take care of the things they need to, not just be able to get the newest video game. The raise of the minimum wage would not only help individual families but the country as a whole.
If everyone in the
United States who were receiving minimum pay had their wages raised, it would inevitably raise the standard of living. It would create more spending going back into the economy to keep it flowing. A minimum wage increase would also mean that more money would be put into Social Security to help with the elderly people of tomorrow. Social Security would not be running out as fast as it is right now. The increase would also cause most of the salaries of other jobs to go up as well. This would show that the benefits would not only go to the companies that have minimum wage workers, but to most all companies. An increase in the minimum wage also has a positive effect on unemployment rates.
Although the common assumption is that if minimum wage increases, then unemployment will go up, this is not correct. In 1998, a study by the Economic Policy Institute found no significant job loss associated with the 1997 minimum wage increase. The low-wage labor market was working better than it had in a long time, with increased family income, increase hourly wages, lower unemployment rates, and decreased poverty rates (Appelbaun). The increase in minimum wage does not have a negative effect on unemployment rates. Workers are willing to work more diligently for more pay which makes it difficult for employers to lay anyone off. If jobs are offering more money, then more people are going to apply. Owners can then be more specific in the hiring and hire a lot better workers. More quality work would be produced and therefore a better product for the customers.
Better products, happier customers, better-ran businesses, and happier employees. 13 million workers would be have happier, easier, and more productive lives with an increase in the minimum wage. All the way from more money in social security to a more money going back into the economy, the U.S would be a better nation. All the benefits of a minimum wage increase, which easily out weigh the few negative aspects, would be seen throughout all of
America.
