The Pros of Raising the Federal Minimum Wage to $15/hour

THE PROS OF RAISING THE FEDERAL MINIMUM WAGE TO $15/HOUR 8

The Pros of Raising the Federal Minimum Wage to $15/hour

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The Pros of Raising the Federal Minimum Wage to $15/hour

Section 1: Sources

1. Doyle, A. (2019). Pros and Cons of Raising the Minimum Wagehttps://www.thebalancecareers.com/pros-and-cons-of-raising-the-minimum-wage-2062521

2. Fahimullah, F., Geng, Y., Hardy, B., Muhammad, D., & Wilkins, J. (2019). Earnings, EITC, and Employment Responses to a $15 Minimum Wage: Will Low-Income Workers Be Better Off?. Economic Development Quarterly33(4), 331-350. https://journals.sagepub.com/doi/abs/10.1177/0891242419880269

3. Jardim, E., Long, M. C., Plotnick, R., Van Inwegen, E., Vigdor, J., & Wething, H. (2017). Minimum wage increases, wages, and low-wage employment: Evidence from Seattle (No. w23532). National Bureau of Economic Research. https://www.nber.org/system/files/working_papers/w23532/w23532.pdf

4. Shook, J., Goodkind, S., Engel, R. J., Wexler, S., & Ballentine, K. L. (2020). Moving Beyond Poverty: Effects of Low-Wage Work on Individual, Social, and Family Well-Being. Families in Society101(3), 249-259. https://journals.sagepub.com/doi/abs/10.1177/1044389420923473

Section 2: Outline

I. Introduction

· Increasing the federal minimum wage to $15/hour is a debatable topic

· The rate has stagnated since 2009

· Current federal minimum wage is $7.25/hour

· An increase to $15/hour is advantageous because it will:

· Improve workers’ living standards

· Eradicate poverty

· Make employers more responsible

· Enhance the nation’s overall productivity

· Enhance society’s welfare.

II. The Pros of Raising the Federal Minimum Wage to $15/hour

· Improve workers’ living standards

· Many American workers earn less to keep up with the rising cost of living

· Increasing the minimum wage to $15/hour will raise income level, thus living standards

· $15/hour will ensure employees receive adequate and reasonable wages to access and afford fundamental needs

· Eradicate poverty

· Employees will live above the poverty line

· Current inflation rate is not concurrent with the federal minimum wage of $7.25/hour

· Workers and their families will access basic needs

· Covid-19 pandemic has sent a signal of why increasing the wage is essential

· Employers will become more responsible

· They will pay their workers appropriately

· Employee exploitation will stop

· Enhance the nation’s overall productivity

· Employers will hire professionals

· Dependency on cheap and unskilled labor will end

· This will improve labor quality and overall productivity

· Professionals and skilled workers will get the job done effectively

· Improve society’s welfare

· Workers will get wages commensurate with the cost of living, thus enhancing the living standards of many people

III. Conclusion

· Raising the federal minimum wage to $15/hour has many pros

· It will improve workers’ living standards, eradicate poverty, make employers more responsible, enhance the nation’s overall productivity, and enhance society’s welfare

· The federal government should act now

Section 3: The Pros of Raising the Federal Minimum Wage to $15/hour

In recent years, the debate whether the federal minimum wage should be increased to $15/hour has continued to gain momentum. Despite the Fair Labor Standards Act (FLSA) allowing for a continuous wage increment, the federal minimum wage in the United States has not increased since 2009 (Shook et al., 2020). However, there have been calls for an increment in this rate from $7.25-$15/hour. This essay’s goal is to assess the various pros of raising the federal minimum wage to $15/hour. Raising the federal minimum wage to $15/hour is advantageous because it will improve workers’ living standards, eradicate poverty, make employers more responsible, enhance the nation’s overall productivity, and enhance society’s welfare.

Generally, the pros of increasing the federal minimum wage to $15 per hour would be felt at the employee, employer, and societal levels. Concerning the positive or beneficial implication on workers, increasing the federal minimum wage bill will enhance the living standards of millions of impoverished workers across the United States. Recent labor statistics show that many American workers earn insufficient amounts to keep up with the rising cost of living. The current rate of $7.25/hour is inadequate to ensure workers earn enough to meet all their needs (Shook et al., 2020). Raising the minimum wage to $15/hour will ensure employees receive adequate and reasonable wages to access and afford fundamental needs, thus improving their overall welfare.

Besides, raising the federal minimum wage to $15/hour will ensure workers live above the poverty line. According to Doyle (2019), the present U.S. inflation rate is not concurrent with the federal minimum wage of $7.25/hour, hence caging thousands of employees below the poverty line. In this sense, increasing the minimum wage will help curb the poverty menace in the country. At least every worker and their families will manage to afford basic needs such as food, health, education, and housing. During the current Covid-19 pandemic, many people have been subjected to poverty, and the current rate of $7.25/hour has not helped much. Millions continue to file for the non-employment cover. Increasing the minimum wage to $15/hour would be a great relief to these individuals.

Raising the federal minimum wage to $15 per hour is also advantageous because it will make employers more responsible and pay their workers appropriately. Employers continue to exploit workers in the current federal minimum wage, which does not match the staff’s expertise, skills, and experience. Studies have indicated that new hires often become victims of low pay because of the inappropriate federal minimum wage (Shook et al., 2020). The rate has given employers powers to exploit workers intentionally. Increasing the minimum wage to $15/hour will end this behavior and injustice.

Apart from influencing employers to pay their staff appropriately, increasing the federal minimum wage will also compel these individuals to hire professionals instead of depending on unskilled and cheap labor. In other words, employers will acknowledge that labor is essential and expensive. As a result, the labor quality and overall productivity of the United States will improve. Jardim et al. (2017) pointed out that the quality of its labor determines a nation’s overall productivity. A high-quality labor force comprising skilled and professional individuals would ensure the set production goals and objectives are attained efficiently and effectively than the unskilled and less experienced workforce.

In addition, raising the federal minimum wage to $15 per hour is advantageous since it will positively impact society by improving its overall welfare. Workers will get wages commensurate with the cost of living, thus enhancing the living standards of many people (Fahimullah et al., 2019). Finally, the ripple effect of raising the minimum wage is that the action will put more pressure on organizations to increase their pay in other areas, benefiting all workers in the long run.

Conclusion

To sum up, raising the federal minimum wage to $15/hour is advantageous because it will improve workers’ living standards, eradicate poverty, make employers more responsible, enhance the nation’s overall productivity, and enhance society’s welfare. The federal government should emulate the steps made by San Francisco and California states to increase the minimum wage to $15/hour. The legislature should exercise its powers under the Fair Labor Standards Act (FLSA) to enact a law to ensure this goal is achieved for many Americans to benefit.

References

Doyle, A. (2019). Pros and Cons of Raising the Minimum Wage. https://www.thebalancecareers.com/pros-and-cons-of-raising-the-minimum-wage-2062521

Fahimullah, F., Geng, Y., Hardy, B., Muhammad, D., & Wilkins, J. (2019). Earnings, EITC, and Employment Responses to a $15 Minimum Wage: Will Low-Income Workers Be Better Off?. Economic Development Quarterly33(4), 331-350. https://journals.sagepub.com/doi/abs/10.1177/0891242419880269

Jardim, E., Long, M. C., Plotnick, R., Van Inwegen, E., Vigdor, J., & Wething, H. (2017). Minimum wage increases, wages, and low-wage employment: Evidence from Seattle (No. w23532). National Bureau of Economic Research. https://www.nber.org/system/files/working_papers/w23532/w23532.pdf

Shook, J., Goodkind, S., Engel, R. J., Wexler, S., & Ballentine, K. L. (2020). Moving Beyond Poverty: Effects of Low-Wage Work on Individual, Social, and Family Well-Being. Families in Society101(3), 249-259. https://journals.sagepub.com/doi/abs/10.1177/1044389420923473