Pros of raising the minimum wage
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.
Adding a federally mandated cost in the form of increased minimum wage would lead to longer unemployment, reduced work hours or hiring, and increased layoffs for low-wage workers as businesses balance reduced revenues and increased costs.
Arguments for Raising Minimum Wage: It Will Benefit Millions, Lift Struggling Workers Out of Poverty. The CBO report does have some silver linings: It estimates a federal minimum wage hike to $15 per hour would lift nearly one million people out of poverty and nearly 27 million workers would be affected by the increase ...
Also, increases in the minimum wage will actually redistribute income among poor families, where some are given higher wages and others are put out of work. 3. It can create unemployment. In a free labor market, salary rates would reflect the willingness of employers to hire them and the willingness of workers to work.
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.
Historically, minimum wage increases were large, one-shot changes imposed with little advance notice for businesses. ... They also observe that small minimum wage increases do not lead to higher prices and may actually reduce prices.
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.
Raising the minimum wage increases consumer spending and boosts the economy. A study by Doug Hall and David Cooper estimated that a $2.55 increase in the minimum wage would increase the earnings of low-wage workers by $40 billion and result in a significant increase in GDP and employment.
The purpose of the minimum wage was to stabilize the post-depression economy and protect the workers in the labor force. The minimum wage was designed to create a minimum standard of living to protect the health and well-being of employees.
The purpose of minimum wage laws is to prevent employers from exploiting desperate workers. The minimum wage should provide enough income to afford a living wage. That is the amount needed to provide enough food, clothing, and shelter.
Of those paid an hourly wage, never-married workers, who tend to be young, were more likely (4 percent) than married workers (1 percent) to earn the federal minimum wage or less.
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