For many years, there has been discussion about the minimum wage in the United States. Many people contend that we should exercise caution when raising the minimum wage significantly due to the inflation (greater labor expenses = higher consumer prices) and job losses that would follow. Others think that the minimum wage should be increased to keep up with the cost of living since it is too low to support families.
> Take one side of the issue, and argue for it with strong supporting facts or reasons.
> Support your response with examples from your experiences, observations, or readings.
Overview
The Raise the Wage Act of 2019 was updated on July 18, 2019, and it was approved by the U.S. House of Representatives. It would progressively raise the federal minimum wage to $15 per hour by 2025.
The federal minimum wage is currently $7.25 per hour, and it hasn’t been raised since 2009.
However, because the Senate Committee on Health, Education, Labor, and Pensions decided not to vote on the proposal, the measure was defeated in the Senate (or to discuss any increase in the minimum wage, for that matter). As a result, the argument over raising the minimum wage continues.
A federal minimum wage of $15 per hour may come closer if Joe Biden wins the presidential election in November 2020, as it is one of his policy agendas.
Pros
The main justification put up in favor of increasing the minimum wage is that higher wages will raise the overall standard of life for minimum wage workers by giving them a higher income level that is more suitable for coping with rises in the cost of living.
According to a 2019 Congressional Budget Office (CBO) assessment, an hourly minimum wage of $15 by 2025 would result in a considerable improvement in the standard of living for at least 17 million individuals, including an estimated 1.3 million people who would be lifted out of poverty.
While some advocates of raising the minimum wage believe that a considerably greater number of people and families would escape poverty if they earned more money, a projected decrease in the demand for social services is a related possible benefit.
Cons
The likelihood that businesses may raise prices as a result of raising the minimum wage is one of the drawbacks, as it will encourage inflation.
The argument put up by opponents is that raising the minimum wage would probably lead to a rise in overall wages and salaries, which would significantly raise operating costs for businesses, who would then raise prices for goods and services to pay their increased labor costs.
Price increases result in an overall increase in living expenses, which could effectively offset any benefit that workers could have from having more money in their pockets.
