It is not uncommon for Americans who earn minimum wage to struggle to pay their housing and utility expenses. They earn an average of $500 a month and fight to survive at a basic standard of living.
Many people understand that raising the minimum wage would certainly benefit the working poor earning $7.25 an hour. Yet, a lot of people don’t truly understand the federal minimum wage and its effects.
Some may think that a large number of people earn the minimum wage. However, only 2.6 percent of the nation’s 107.9 million salary workers earn the federal minimum wage, according to the Bureau of Labor Statistics. Many of the people who earn the federal minimum wage are young. Just over 50 percent are between the ages of 16 and 24, and of that age group, 24 percent are teenagers, according to PEW research center.
I was initially against raising the minimum wage. I figured that businesses would suffer from lower profits and people would be laid off of work, which is true to some degree. But once I read about adjusting the minimum wage to keep up with inflation, I found this to be the most appropriate solution to help end the cycle of poverty.
A minimum wage hike would undoubtedly benefit the 3.3 million workers who earn wages at or below the federal minimum. In order for hardworking individuals earning minimum wage to successfully rise above poverty, minimum wage rates must keep pace with inflation and price levels.
Americans who barely make ends meet should not be dependent on the government if they are working to their full capability. Raising the minimum wage to match inflation would allow people to rely less on the government for necessary life resources, which would save the government money since they could spend less on social programs.
Since 1938, the hourly minimum wage rate has been raised 22 times to keep up with rising prices. Instead, minimum wage should be automatically adjusted to inflation so that workers immediately benefit. If Congress passed bills that automated the minimum wage level, they would increase efficiency so that Congress wouldn’t have to propose a new bill to raise the minimum wage as prices rise.
Some cities, including Seattle, are raising the minimum wage to $15. This is too much—a hike too large in the minimum wage would not be beneficial because it would probably strain small businesses.
They would have to pay their workers more and do one of three things: lay off some workers, cut profit margins, or raise prices. As a result of laying off workers, it would become more difficult for the minimum wage workers, who tend to be young and unskilled, to find a job in a competitive job market.
Furthermore, in order to replace their profit losses, some businesses would have to raise their prices, causing the value of the dollar to decrease. It is likely that prices would rise as well, defeating the original intention of raising the minimum wage.
There tends to be a misconceived notion that if you support a substantial minimum wage raise, then you genuinely care about others. If you don’t, then you are insincere and your values are elitist. However, these assumptions must be put aside to truly evaluate the federal minimum wage.
Starting now, the federal minimum wage should reflect inflation. We should not wait to raise it from $7.25 to $10.10 because it will not be instantly lift minimum wage earners out of poverty. While Congress needs to focus on adjusting the minimum wage, Americans must ensure that they are aware of the current minimum wage level and its impact. Once I took the time to understand the statistics and moral arguments for raising the minimum wage through articles and Pew Research, my stance changed. I urge you to do the same.
