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August 23, 2019

Should the Government Raise the Minimum Wage?

With millions of Americans struggling to work more than one job just to make ends meet, should the government raise the minimum wage?

Should we raise the minimum wage? That's the $64 million question. Some argue that there are many reasons to raise the minimum wage, but what are they? 

The first federal minimum wage was part of the Fair Labor Standards Act (FLSA) in 1938 under President FDR. It was set at $.25 per hour. 

The minimum wage is the lowest amount of money employers can pay their employees. Some states have their own minimum wage laws, so the wages can differ in those states. 

The minimum wage was first introduced as a way to increase wages for hourly, lower-paid workers. It doesn't rise with inflation, only with congressional action. Which is why the question, "Should the government raise the minimum wage?" is being debated. 

Let's take a look at the pros and cons. 

Should the Government Raise the Minimum Wage? 

Would you answer yes to this question? What is your reason to raise the minimum wage?

Would you say no? What are the negative effects of raising the minimum wage? 

Whatever your view, take a look at the good and bad of raising the minimum wage and then decide. 

Why We Should Raise the Minimum Wage 

If you are in need of money, you wholeheartedly agree with any pay increase. Besides putting more money in your pocket, what else will the increase accomplish? 

  • Higher earnings mean less reliance on government programs like food stamps and unemployment. 
  • It will help workers keep up with the rate of inflation. The minimum wage has been the same for the past 10 years. 
  • Higher wages increase tax revenue. 
  • When citizens make more money, they have more money to spend, putting it into the economy. 
  • Better paid workers are usually happier workers. Employee loyalty and less turnover are good for any company. Less recruitment and training costs will also result. 

Why We Should Not Raise the Minimum Wage

What could be wrong with paying people more money? What is the downside of raising the minimum wage? 

  • Some businesses, especially small, family-run establishments, simply cannot afford a higher minimum wage and would end up laying off employees. 
  • Companies with higher payroll costs will pass the increase onto their customers and consumers through price increases. It then becomes a vicious cycle. 
  • Jobs may be lost to outside sources, like India and Mexico, where employers can pay the workers a lower wage. 
  • Companies may put a freeze on hiring, limiting job opportunities for those just getting into the labor force. 
  • Increased prices may lead to the growth of inflation. 
  • There may be more competition for minimum wage jobs boxing out younger, less experienced workers who normally take these type of jobs.

Where Do You Stand on the Issue? 

Should the government raise the minimum wage? You just read the arguments for and against. Where do you stand?

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