Minimum Wage

Minimum Wage

To increase or decrease the minimum wage is the question. This topic has been long debated in coffee shops to the White house, and in the homes all across the United States will few or no results that make either opposing side satisfied. Recently, in the news workers in, the fast food industry, in several states went on strike demanding for a wage increase. Their efforts only got the attention of the media because their wages remain the same. Even though increasing the minimum wage will not end poverty, the increase of minimum wage will decrease unemployment and low income workers. Increase the minimum wage will stimulate the economy that will be beneficial to everyone.

Increase versus No Increase

(Veldhuis, N 2007) argues, increasing the minimum wage will not help bring an end to poverty. Rather it will reduce employment, on- the job training and benefits. There will always be poor persons, however increasing the minimum wage to those who are employed or future workers in those industries will assist in decreasing the percentages of low income families. On- the job training would not be need as much, because individuals are more likely pursue additional education to help them land jobs that pay more. It is vital to highlight that minimum-wage increase does not have adverse labor market effects. Contrary to this article assertions, raising the minimum wage does not cause job loss research conducted by (Card and Krueger, 1994) revealed that minimum wage increases did not cause job loss. An increase in the minimum wage would help working families hit by the recession and provide a boost to the economy.

No Full- Time Employee should be on the Poverty Line

An individual that works 40 hours per week annual income should not fall below the poverty line. Individuals have chosen not work, instead they receive financial support from the state and live a standard of life that is better if they did work. This mentality is what causes our economy to suffer, and continue a cycle of individuals that do not work and further increase unemployment numbers. Tax payers would not have to pay so much in taxes if more people were employed, but the pay has to be higher than what these individuals receive when they are on government assistance.

In conclusion, although minimum wage will not put an end to poverty, minimum wage must increase for two main reasons. First, no full time worker income should fall on or below the poverty line. But most importantly, it decreases unemployment and low income workers.