Should The Minimum Wage Be Increased?

should the minimum wage be increased

Should the minimum wage be increased?

President Obama, who has been described by many political experts as the weakest President in history, has been trying to push for a raise in the minimum wage with little success. Some may applaud his dedication in helping poor families to get out of poverty but his results have not been impressive many hard up families have said.

Read the Reuters article on minimum wage here


Should the minimum wage be increased?

At the present moment the national rate of minimum wage is $7.25 per hour, President Obama in 2013 said he wanted to increase it to $9 while many unions have said the minimum wage should be $10.10.  Even though he has tried to increase the minimum wage he has not been successful with many blaming the Republicans.

Charities have warned the minimum wage needs to be urgently increased with the poverty rate for children standing at 14.7 million. With reports claiming more families are turning to payday lenders to survive each month, it might seem that President Obama is right that wages should be increased, so why are the Republicans fighting him tooth and nail to stop his mission?

The minimum wage has been one of those big debates that people cannot decide on. There is a side that argues that raising it will lead to more families getting out of the poverty trap. Others argue that the road to the recovery lies in lowering or even eliminating it. There is a third school of thought that believes the current financial woes have nothing to do with wages. So who’s right or who’s wrong? Let’s take a deeper look.

The proponents of minimum wage raise believe that the problems with sub-standard living is because the federal minimum wage cannot keep up with the cost of living. There is truth behind the argument. The minimum wage has been steadily declining since its rise in 1968. They argue that it is no coincidence that the entire attempt to reduce poverty has hit an impasse since that very year. The proponents of minimum wage raise argue that a raise will be beneficial to business owners as it will increase employee loyalty and enhanced performance by the workers.

However, as with everything significant, there is yet another side to the argument. The lower minimum wage camp believes that the true path to reduction of poverty lies in allowing businesses to pay according to the state of the market. Businesses argue that wiping out the minimum wage could pave the way for hundreds of jobs and wipe out unemployment completely. The hourly age might fall, but more jobs will be created will more than make up for it, they argue. Small business owners also argue that raising minimum wage would force them to cut jobs to compensate for the rising cost.

So is it a case of the rich getting richer and the poor getting poorer or is the camp for not increasing the minimum wage right, that it could cause more unemployment?


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