Today about 1.6 million Americans work for the minimum wage, which is less than 5% of hourly workers. It is a relatively small number as another 2 million people earn even less due to certain exceptions on the U.S. law. Now the federal lowest wage the companies may pay to their employees is $7.25 per hour, totaling in $15,000 per year for the full-time workers. According to the U.S. Bureau of Labor Statistics, most of the minimum-earning workers have the part-time job in the service industry.
For 2014, only in 4 states the minimal wages are lower than the federal minimum wage. In 19 states the minimum wage equals to the federal minimum wage, 21 state and D.C. have the minimum wages above $7.25 per hour.
President Obama announced that the White House is planning to increase the minimum wage for some workers from $7.25 to $10.10 per hour. There are many pros and cons of such a plan. Democrats say that the increase will make many people spend more if they get higher wages. Spending more money will boost the economy, narrow the gap between rich and poor and create more jobs.
However, the Republicans say that the increase of the federal minimum wage may make the companies to cut their workforce and consumers will have to pay higher prices goods and services. They state that raising the federal minimum wage will hurt the American economy.
I believe that the minimum wage should not be increased in the nearest future. The U.S. unemployment rate is very high (6.7%) and today the Federal debt is about $17.5 trillion. Washington has to cut spending, not to increase the minimum wages of federal contractors.
Works Cited
United States Department of Labor . Minimum Wage Laws in the States. N.p., 1 Jan. 2012. Web. 30 Jan. 2014. <http://www.dol.gov/whd/minwage/america.htm>.
Jackson, David. “Obama To Raise Minimum Wage For Some Federal Workers.” USA Today. N.p., 28 Jan. 2014. 30 Jan. 2014. <http://www.usatoday.com/story/news/2014/01/28/obama-state-of-the-union-minimum-wage-executive-action/4956893/>.
