Minimum wages were established in the U.S. In 1938 in the United States Vs. Darby Lumber Co. but were regulated by government through the Fair Labor Standards Act (which helped to get rid of sweatshops and also helped to pay workers for the rigorous work they were doing). When most teenagers get their first job, they are payed the base salary of $7.25 an hour-depending on what type of job it is. You may think it’s not much but if you save it, you can accumulate a fair amount of money (for a teenager at least). However, you have to take in to consideration that that teenager is going to need to do something with that money such as save it or spend it; that doesn’t leave them with much after. You also have to consider the single parents with kids or whatever the situation who are working full time and getting paid minimum wage. Do you think that will provide them with enough money to pay for food or heating etc.?
Throughout the years the debate between either maintaining or raising the minimum wage has been very controversial. You can raise the minimum wage so that people can make more and therefore stimulating the economy and preventing it from high inflation. But where does that money come from? Some people disagree because they think that raising the minimum wage will take away from the small businesses; if a small business has to pay its workers more money, then they won’t be able to hire as many workers or even have to lay some of them off. In addition to this, some businesses/companies may raise the price of their goods as people start to make more money. Another con to increasing the minimum wage is that it was set to help raise the poverty line and stimulate the economy but the goal it was originally set for-according to some people-is not being met. Rather than having some people who don’t have jobs get minimum paying jobs, your everyday teenager is getting a low paying job as a way to earn money. Lastly, if prices go up, that would mean that some low income families who may rely on food stamps or government help may not be eligible for those options if they get paid more which could affect their overall stability and lifestyle-possibly hurting them even more than getting paid minimum wage.
I think that the minimum wage should increase because not only would it stimulate the economy but it could potentially help get people above the poverty line. If the cost of living is high and you barely have enough money to pay for housing, how is that helpful for you if you also have to factor in providing for your family and what not? As people make more money, they will want to spend it and when they do, it goes back into the economy. Also by increasing the minimum wage, it’ll make it so that people will want to find jobs quicker so that they have a way to make a living. “The transfer of income from higher income owners (who tend to save more, meaning a lower MPC) to lower income workers (who tend to save less, with a higher MPC) can actually lead to an increase in total consumption and higher demand for goods, leading to increased employment.” Increasing the minimum wage can also help the workers that are paid lower to increase how they work which will benefit the people who they’re being employed by. In addition to this, even by paying people the minimal amount it’s providing jobs for some (who it may be harder to find jobs for) and making it so rather than being homeless or finding other means of payment, they will have a job.
