Raising the minimum wage on a regular basis helps families keep up with price inflation. Putting more money in the hands of people who will readily spend it helps the economy. ... Lower unemployment and higher wages increase tax revenues. When workers earn higher wages, they rely less on governmental “safety net” programs.
New research shows that the pass-through effect on prices is fleeting and much smaller than previously thought. ... They also observe that small minimum wage increases do not lead to higher prices and may actually reduce prices.
The federal minimum wage of $7.25 per hour has not changed since 2009. Increasing it would raise the earnings and family income of most low-wage workers, lifting some families out of poverty—but it would cause other low-wage workers to become jobless, and their family income would fall.
According to the report, increasing the federal minimum wage to $15 by 2025 will do a lot of good: Lift 900,000 people out of poverty. Raise income for 17 million people (one in 10 workers), to the tune of $509 billion over 10 years. Potentially increase wages for another 10 million people who currently make close to ...
Opponents of raising the minimum wage believe that higher wages could have several negative repercussions: leading to inflation, making companies less competitive, and resulting in job losses.
Raising the wages of low-income workers will stimulate the economy; substantially lower the amount the country spends on social safety net programs such as SNAP; and reduce economic inequality, thereby unleashing additional economic growth in a period of recovery.
A rise in the minimum wage to $15 an hour would lead to the loss of 1.4 million jobs by 2025, the Congressional Budget Office said Monday. ... In addition to the job loss, the CBO estimated that 900,000 people would be lifted out of poverty.
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