Today's Economic Issues by Nancy Lind

Author:Nancy Lind
Language: eng
Format: epub
Publisher: ABC-CLIO
Published: 2016-04-12T04:00:00+00:00

Minimum Wage

At a Glance

Since 2009, United States workers in most jobs have been guaranteed to make at least $7.25 per hour of work. This is known as the minimum wage. Most of the debate surrounding minimum wage centers on whether or not to raise or maintain the amount paid per hour. Support for raising the minimum wage comes primarily from Democrats. Democrats tend to believe that the current minimum wage is not enough for a person to live comfortably, keeping many people below the poverty line. They think additional money in more people’s pockets will benefit all levels of the economy, as low-income people will have more money with which to buy goods. Further, Democrats find that changes to the minimum wage have not been linked to the price of consumer goods as established by the consumer price index, a set listing of the price of goods. This means that because of inflation, $7.25 does not buy as much as it did in 2009, and the minimum wage will only continue to be lowered relative to the cost of goods unless the amount is raised.

Opposition to raising the minimum wage generally comes from Republicans. Republicans believe that raising the minimum wage will cause a rise in the cost of goods and higher levels of unemployment, as employers will have to compensate for higher labor costs. They believe that many people who hold minimum wage jobs will lose their job and be unable to find another, therefore a higher minimum wage will in fact hurt the very people it is trying to help. Republicans also note that only a very small percentage of the American labor force makes minimum wage, but the increased cost of goods would harm all Americans, particularly the middle class. Finally, many Republicans argue that having a minimum wage at all is an unfair government intrusion into the private sector, and the market would be able to determine a fair wage for workers without government intervention.

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