President Obama has called for raising the minimum wage in his speech as early as March 10th, 2013. However now should we raise the minimum wage?
There is no doubt that we have two warring camps: we should raise the minimum wage, and we should not raise the minimum wage. Opponent considers the decision of raising the minimum wage to be unintelligent because we would increase poverty when we raise the minimum wage rather than improve the living level. Meanwhile, they still insist that raising the minimum wage to lead to the result that more and more company will close, we have to love more jobs.
In my opinion, it’s just the opposite; we should raise the minimum wage in today society. Because Raising the minimum wage not only can help American to recover the economy but also can it increase the sense of national pride. On a family level, raising the minimum wage can help unskilled and uneducated workers and their families. On a business level, raising the minimum wage will accelerate the recovering process of the economy. More importantly, the higher minimum wage will help people acquire their confidence again so that they can be proud of being an American.
To begin with, raising the minimum wage will help the poor to improve their family conditions, and therefore indirectly promote economy’s development. According to an article debating over minimum wage, some argue that “workers who earn the minimum wage are not the primary breadwinners but are secondary earners — an elderly parent earning some retirement income or a spouse with a part-time job.” (Kevin A. Hassett and Michael R. Strain “The minimum wage debate” March 10, 2013, Los Angeles Times) People may think that minimum wage has nothing to do with America’s financial problem and the so-called “secondary earners” make no contribution to society’s financial growth. They are, However, very wrong. First of all, according to the article “Why we need to raise the minimum wage” from Los Angeles Times, out of all the Americans who have jobs, there are still 8 million workers who live below poverty line. What we can’t overlook is those secondary earners are making contributions to our economy. Economist James Galbraith says “With more family income…and because payroll- and income-tax revenues would rise, the deficit would come down. Social Security worries would fade.” (Marshall Auerbach, “Five reasons why we should raise the minimum wage, Salon.com, Monday, JUL 30, 2013) Once minimum wage is raised, millions of people in America will have immediate purchase power increase. Consequently, higher minimum wage would stimulate America’s economy by creating more demand for the variety of products and an increase in demand for more labor will be the result. Just like Mr. Galbraith said the deficit would eventually come down and a positive chain reaction kicks in. Anne L. Thomson reported, “Commerce Department reported that consumer spending, which makes up 70 percent of the economy, dropped in June for the first time in nearly two years — both deeply worrying economic indicators.” (Anne L. Thomson, “Raise minimum wage, make lives and economy better,” special to CNN, Fri September 2, 2011). Raising the minimum wage will change families’ conditions, increase consumptions and fuel economy for America, so situation such as the one Mr. Thomson reported will not happen anytime sooner.
Furthermore, raising the minimum wage will also boost the economic recovery process on the business end. On the contrary, some people still insist that raising the minimum wage will destroy many operating posts. For example, higher minimum wage means higher cost for business owners to bear, which could lead to the higher unemployment rate. However, I think that raising the minimum wage will firstly improve and promote consumption, and it will also create the more operating post. For example, according to CNN’s report, “folks with jobs are still having trouble meeting their families’ basic needs. Accounting for inflation, weekly wages has fallen by 1.3 percent in the past eight months” (by Anne L. Thomson, “Raise the minimum wage, make lives and economy better,” special to CNN, Fri September 2, 2011). Low minimum wage not only will make workers feel they are not appreciated, but also unable to improve efficiency in the work fields. Higher minimum wage tells the worker that their jobs are valuable and worth their time. With a higher payroll workers and their family will stop worry about their next meal or even work on other part-time jobs. Instead, they would focus on what they do and increase efficiency an effect known in the economy as the “Efficiency Wage Effects.” Also, Andy and Carl said, “Raising the minimum wage is not about reducing inequality, but it is also about restoring the true value of work. Every American’s hard work should be rewarded.” (Andy Stern and Carl Camden, “Why we need to raise the minimum wage, March 10, 2013, Los Angeles Times). Raising minimum wage may seem like a raise in cost of production at first, but in the long run, profits made from efficiency and increased productivity will balance out the raised minimum wage at the beginning. Increase minimum wage will benefit company and economy in the long run.
Finally, the increase in minimum wage will help people to feel a sense of pride to be an Americans. As Shamus says “While the economic arguments for raising the minimum wage are important, we should also not forget to think about the morality of our economy.” (Shamus Khan, “The Promise of More: Why We Should Raise the Minimum Wage,” TIME, Feb 21, 2013) I think once we have to face questions like whether to raise the minimum wage or not, we should look at America’s present situation before making the conclusion. America is no doubt in her heaviest debt in ages, and the unemployment rate was one of the highest points in history. However, as should America government crumble by financial difficulties or should America government believe in the free market and capitalism of which the country was founded upon. The key word is “Morality.” America’s economy was based on good faith, from Economy theories on paper to Barack Obama’s Stimulus plan. To fire up America’s financial engine again, people’s belief in a good market is needed, which a raise in minimum wage would show. There is no denying that minimum wage workers are one of the basic foundations of the country. The increase in the minimum wage will enhance their stability, and lead America to a better future.
There is no denying that raising the minimum wage will help the economy recover, but it doesn’t mean that we should unregulated raise our minimum wage, we have to manage the normal range, because of our target is improving our living level, and help economy recover and growth.
- “The Case Against Raising the US Minimum Wage.” Insert Name of Site in Italics. N.p., n.d. Web. 22 Mar. 2017 <https://panampost.com/jose-azel/2016/06/28/the-case-against-raising-the-us-minim>.
2.”The minimum-wage debate – latimes.” Insert Name of Site in Italics. N.p., n.d. Web. 22 Mar. 2017 <http://articles.latimes.com/2013/mar/10/opinion/la-oe-hassett-the-case-against-t>.
- “Raise minimum wage, make lives and economy better – CNN.” Insert Name of Site in Italics. N.p., n.d. Web. 22 Mar. 2017 <http://www.cnn.com/2011/09/02/opinion/thompson-obama-minimum-wage/index.html>.
- “Why we need to raise the minimum wage – latimes.” Insert Name of Site in Italics. N.p., n.d. Web. 22 Mar. 2017 <http://articles.latimes.com/2013/mar/10/opinion/la-oe-stern-camden-why-we-should>.
- “The Promise of More: Why We Should Raise the Minimum Wage.” Insert Name of Site in Italics. N.p., n.d. Web. 22 Mar. 2017 <http://ideas.time.com/2013/02/21/the-promise-of-more-why-we-should-raise-the-min>.