President Barrack Obama recently proposed to increase the minimum wage to $9 an hour so as to ensure a decent living for the working class. On one hand, some liberals view the idea as beneficial to the working class that they want the increase to be $15 an hour. On the other hand, most conservatives have opposed the idea with some wanting to repeal the minimum wage entirely. The increase in the minimum wage to $9 an hour is modest and is beneficial to the nation as it strengthens the middle class which in turn leads to a stronger economy.
Minimum wage is an important aspect of the economy as it reduces poverty and enables hardworking citizens to have a decent living. Raising the minimum wage stimulates the economy as it encourages the spending of impacted families (Office of the Press Secretary par. 10). Clearly, this would increase the sale of businesses so that they can pay for the increased wages without incurring any losses. Also, the idea would result in increased productivity as businesses would find methods to improve worker efficiency to cater for the increased costs (Office of the Press Secretary par. 11). Nick Hanauer, an economic equality critic, strongly supported the increase in minimum wage. He went ahead to propose it to be $15 an hour which is more than double the federal minimum (Matthews par. 2). However, such a high increase would bring unintended and undesirable consequences such as increased job losses, increase in the price of products and fewer hiring. For the minimum wage increase to be beneficial, it should be modest.
The modern propagators of raising the minimum wage have good intentions. However, the increase should be modest so that it does not become a hindrance to job growth. While the $9 an hour minimum wage would boost low-income worker with little loss of employment, a $15 an hour is another issue as it may have undesirable consequences to the economy. A modest increase in the minimum wage such as $9 an hour leads to a stronger middle class and the economy in general.
Works Cited
Matthews, Dylan. "A $15 Minimum Wage Is A Terrible Idea". Washington Post. N.p., 2016. Web. 26 July 2016.
Office of the Press Secretary, the White House. "Fact Sheet: The President’s Plan to Reward Work by Raising the Minimum Wage". whitehouse.gov. N.p., 2013. Web. 26 July 2016.
