The Business of the Minimum Wage
This article discusses minimum wage from an economic point of view. Obama wants to propose an increase in minimum wage from $7.25 to $9.00. Economists are weighing the pros and cons of that proposition. The main issue to think about is which class this change most directly affects. The obvious answer is the lower class, but many teenagers from middle and upper class families work for minimum wage as well. Data and studies have shown that this increase will affect approximately half of those earning less that $40,000 per year. Another concern is that a higher minimum wage may lead to business cutting down on its employees. On the positive end, business productivity may increase. A higher salary leads to more proficient workers. The lower class is shown to spend more than other classes. Therefore a higher salary will lead to more spending, creating more development in businesses. 13 million workers earn the current minimum wage. If they all earn $9.00 and work full-time, the income of those workers in total will be around $50 billion.
The topic of minimum wage is important in today’s society. Increasing minimum wage has its pros and cons. Either route taken will have serious impacts on not just employees, but businesses as well. Personally, I believe that increasing minimum wage will drive a stronger work ethic, which benefits businesses. An increased salary will be spent, distributing earnings to the economy. I believe that this proposition is an excellent way to lessen poverty.