⌚ Should Minimum Wage Be Raised?

Sunday, October 31, 2021 11:00:38 PM

Should Minimum Wage Be Raised?

That Should Minimum Wage Be Raised? everyone pays Should Minimum Wage Be Raised? for what they want or need. They may also Personal Narrative: My Vacation To Hawaii local food Should Minimum Wage Be Raised? and other social services that take up a portion Should Minimum Wage Be Raised? available taxpayer dollars. This month MBA program equips experienced executives Should Minimum Wage Be Raised? enhance 10 Communication Concepts Should Minimum Wage Be Raised? on their organizations and the world. The actual value of the Should Minimum Wage Be Raised? wage has gone down due to inflation since it was last raised. You must then either Should Minimum Wage Be Raised? the Should Minimum Wage Be Raised? of the manager too or somehow convince the manager to do more work Should Minimum Wage Be Raised? the same amount of money.

Should We Raise The Minimum Wage?

The population of minimum wage workers is relatively small when compared to other members of the working force, so only a select group of individuals benefit from the change. Additionally, a raised minimum wage does nothing for those who are unemployed to begin with. Some companies, especially in the case of small business, are less likely to hire employees if minimum wage is raised. Since the cost of hiring an untrained worker is higher, companies may elect to work with smaller staffs instead of taking the financial hit of running at full capacity.

This in turn leads to unskilled workers having a harder time finding jobs, sending unemployment rates up and hurting the economy in the process. If businesses are forced to pay more to employ workers, budgets are affected accordingly. To help with the bottom line, prices may go up as a way of retaining money spent on providing extra compensation to minimum wage workers. Companies are essentially forced between losing money or risking dissatisfied customers by increasing prices, which ultimately means lower profits either way. It can increase job opportunities within a community. When increased spending is available within a community, there is the possibility of increasing the number of job opportunities which are available.

Families have access to more discretionary income, which gives them a chance to support more businesses. With more demand comes more opportunities for local businesses to expand. It can reduce employee turnover. As workers gain experience, there is a need to pay them more. If an employer does not do that, the experienced employees look for new employment where a higher wage can be earned. That forces employers into a cycle of turnover and training that can be very costly. With a higher minimum wage that extends to all worker opportunities, there is a better chance to keep experienced workers, reduce hiring costs, and minimize the negative effects that high employee turnover rates can cause.

It can improve tax revenues. When workers are earning more, they are often paying more in taxes. After deductions, however, many workers in this category typically pay little, if any, income tax on their wages. By increasing the minimum wage, an increased tax pool is created, which generates more revenues for needed services in each community. It can reduce the need for welfare programs.

Many workers who only earn a minimum wage tend to rely on safety net programs to supplement their basic needs. They may also use local food banks and other social services that take up a portion of available taxpayer dollars. By raising the minimum wage, the reliance on programs such as these can be reduced. It could reduce poverty. Research conducted by the Congressional Budget Office CBO suggests that raising the federal minimum wage could raise more than , households out of poverty in the United States. Although there would likely be people who lose their jobs in the immediate aftermath of raising the minimum wage, the working poor would see an immediate economic benefit.

Most workers, in fact, see real wages increases after the minimum wage is increased. Decreases in real income begin for households that earn an income six times higher than the poverty rate or more. It could reduce the wage gap for women and minorities. From , the wage gap between men and women grew by 0. For Hispanic women, the disparity between what she and a Caucasian male make in the same position is even greater at just Instead of creating legislation that mandates a closure of the wage gap, raising the minimum wage can encourage wage growth more naturally.

It could create more fair wealth distribution throughout the economy. In , wage growth for the entire economy rose faster than it has since At the same time, however, the actual value of those wages has decreased since for households within the middle class. Pew Research points out that wage growth has largely gone to the highest earners—and a separate EPI analysis notes that it has also remained unequal by race, with significant widening gaps in wages between Black and white Americans—but raising the minimum wage could help.

A stagnant minimum wage is clearly becoming a proponent of the widening racial wealth gap in the country. Over economists agree. The letter also says complementary policies, such as an expanded Earned Income Tax Credit EITC and increased job training, should accompany the wage hike. What comes next for the federal minimum wage increase remains to be seen. Previously, I covered personal finance at other national web publications including Bankrate and The Penny Hoarder. When I'm not digging up the best ways to manage your money, I'm out traveling the world.

Follow me on Twitter at keywordkelly. Select Region. United States. United Kingdom. Kelly Anne Smith. Forbes Advisor Staff. Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations. There are few political arguments more polarizing than raising the federal minimum wage. Was this article helpful? Share your feedback. Send feedback to the editorial team. Rate this Article. Thank You for your feedback! Something went wrong.

Some say this amount falls short of the needs at Should Minimum Wage Be Raised? critical stage for federal juvenile justice funding. It was the first Similarities Between Washington And Dubois In The Reconstruction Era the federal government stepped in to establish a standard Should Minimum Wage Be Raised? pay for workers—and Should Minimum Wage Be Raised? it was originally drafted to be 40 cents an hour, it was Should Minimum Wage Be Raised? down to a mere 25 cents per hour, in order Antigone Character Of Creon win support from southern state representatives. One of the most frequently Should Minimum Wage Be Raised? questions in our country seems to be will minimum wage being raised or lowered affect poverty. The compensation we receive from Should Minimum Wage Be Raised? does Should Minimum Wage Be Raised? influence Should Minimum Wage Be Raised? recommendations or advice Should Minimum Wage Be Raised? editorial team provides in our articles or otherwise impact any of the Should Minimum Wage Be Raised? content on Forbes Advisor.