Maureen O’Herin
English 1A
Should the Minimum Wage be increased?
Minimum wage can essentially be described as the hourly wage rate set by the law, and it exists to ensure that people who work can earn enough compensation to support not only themselves but their families as well. The idea behind minimum wage has been in existence in American since the late 1800s and the early 1900s when the trade unions were formed and started agitation for better pay for workers from different professions. Since then, there have been various changes to the minimum wage over time, with the government adjusting this number in response to different factors, such as agitation from the trade unions or changes in the economic situation of the country. These changes in minimum wage have always sparked controversy as different people interpret their effect on the country’s economy as well as the people themselves differently (Ehrenreich, 29). The debate about whether to raise the minimum wage has been raging for decades in American society. As of 2010 the minimum wage in America has been set to $7.25 per hour. I believe that it is about time that the minimum wage should indeed be raised because it provides the poor people with a better chance at living a comfortable life and supporting their families, and as such will examine some of the reasons that underline the importance of taking such a course of action.
The first reason to consider as support for raising the minimum wage is the sheer number of Americans who work for minimum wage. According to Ehrenreich(128), over 75.3 million Americans, a number that represents over 58.2% of the nation’s entire workforce currently depends on hourly wages not only for their own survival but for that of their families as well. This is a significant proportion of the American workforce, and is a clear indication that should the minimum wage is raised; a large number of the country’s population would stand to benefit from it if one considers their families and other people they support into the equation. It stands to reason therefore that increasing the minimum wage and essentially increasing the earning ability of more than half of the American workforce, more than half the American population will benefit and be in a better position to live a higher quality of life.
The workers that earn minimum wage have the ability to affect the financial and economical state of the system they live in. They also happen to be consumers of the same products and services offered within the nation. As such, increasing the minimum wage will allow the already established 58.2% of the entire nation’s workforce the ability to spend more as they will have more money in their pockets (Ehrenreich, 154). Given that this is a significant number of people, increasing their ability to spend will also be tantamount to giving the economy a boost because they will effectively put more of their money back into circulation through spending. The more people within the economy earn and spend, the more the economy grows and the nation is better able to take care of its projects, responsibilities and charges. Thus increasing the minimum wage has the potential to improve the living standards and conditions of not only the individuals who earn minimum wage but also those of the entire country’s population and future generations. Having lived in another country apart from America, I am well aware of how this trickle effect can happen, as I have noticed the difference in the quality of life in America as compared to other countries that lack an active measure of taking care of minimum wage. America’s quality of life is much higher and even people earning minimum wage live better lives than their counterparts in other countries.
There has also been a large amount of discrepancy in the difference between the economic position of the rich and the poor in America. This unequal distribution of wealth has resulted in a number of both social and economic problems all over the country. There has therefore been a definite need to address this widening gap. Raising the minimum wage would be a step forward in the effort to reduce the divide between the rich and the poor. As of now this divide is huge, and in great favour for the rich while the poor remain unable to afford even basic necessities at times. It is therefore a good idea to increase the minimum wage, even if it is only for moral reasons if not for anything else. Minimum wage earners, who represent some of the poorest members of American community, would then be in a much better position to fend for themselves and as such some of the socioeconomic problems brought about by the stark differences in financial abilities between different American people will be addressed, at least to some degree (Ehrenreich, 201). In my line of work I have come across people from all walks of life, and as such I have personally witnessed this discrepancy between the rich and the poor and I am well aware of the animosity that it breeds as well as the need to do away with such negative feelings within our society.
There are still quite a number of people who are set against the idea of raising the minimum wage for whatever reason. Some opponents of raising the minimum wage will argue that increasing the minimum wage, and indeed setting a minimum wage at all, is counterproductive for a free market economy as it prevents employers and employees from coming to their own decisions concerning how much an individual should be paid for they work they do (Ehrenreich, 65). There is a significant amount of truth in this argument, as setting the minimum wage does prevent the ability of employers and employees to come to their own agreements regarding wages. I however believe that the minimum wage must be regulated; otherwise employers may take advantage of their employees and pay them as little as they can so as to increase their profit margins. The temptation to prioritise profits over the wellbeing of their employees may to too great for some employers, and in such a case it is the employees who would get hurt. Raising the minimum wage would not affect the state of the market economy whatsoever as it lacks the required effort to do so. However, when looked at closely raising the minimum wage has the potential of increasing the rates of unemployment because the employers will shy away from employing more workers to cut on their overhead wage and salary related expenses. For example, in the event that the minimum wage is raised form $ 7 to $10 an hour, a business would face an increase of approximately 25% in costs. Consequently, an increase in cost would translate layoffs to reduce the labour related costs.
Other opponents against raising the minimum wage may argue that it is not an effective anti-poverty tool as it is not significant enough to change the way of life of people who earn minimum wage (Ehrenreich, 98). I am of the opinion that the minimum wage should be raised just the same. The raise may not be enough to pull a family out of poverty, but the extra money it gives them still goes a long way in supporting them as with such families, “every penny makes a difference”. From my experience, the people who earn minimum wage are usually not concerned about long term financial planning but would rather get enough money that would ensure that they and their families’ needs are taken care of at that point in time. So to increase the minimum wage would ensure that such people stand a higher chance at meeting their needs. Furthermore, raising the minimum wage can have more positive effects than just economic ones, such as motivating the workers to work even harder or get better at their jobs such that they can earn more, thus leading to more positive effects as well.
Another argument against raising the minimum wage is that it will tempt teenagers, who make up a significant part of the minimum wage workforce, to drop out of school in search of jobs (Ehrenreich, 106). I do not believe that this is a valid concern as teenagers will drop out of school for very many reasons, thus raising the minimum wage should not be an excuse for them. There are millions of teenagers today who hold different jobs while at the same time continuing with their studies. Furthermore, raising the minimum wage may encourage teenagers to actually look for jobs, and through this they may learn early on in their lives the value of work and money, lessons that will help them later on in life. They are able to learn important lessons such as money and time management as well as understanding in detail the need to work hard. For example, raising the minimum wage will lead to layoffs and fewer job opportunities, therefore, college degree holders will not be able to get better paying jobs and this scenario will work out to discourage teenagers and high school students from pursuing degrees because they will have the mentality that earning a degree does not a guarantee for better employment opportunities or relatively high paying jobs. I for example, did engage in menial labor while I was still in high school and for which I received minimum wage as my compensation. Rather than tempt me to quit school, it gave me the opportunity to learn how to become a good worker even before I got out of school.
Minimum wage, commonly defined as the hourly wage rate set by the law, is essentially the least amount that someone working in America should be paid. Having been introduced over a hundred years ago, the minimum wage has been raised time and again in response to the state of the economy as well as the activities of the trade unions. Raising the minimum wage is a good idea because it essentially boosts the economy, increases the ability of millions to support themselves and their families and is also the morally correct thing to do considering the gap between the rich and the poor in America. These reasons by themselves should be enough to convince anyone that a raise in minimum wage is not only good for minimum wage earners alone but also for the nation’s entire economy and the entire population as well. There are those that are however not easily convinced, and state reasons such as the possibility of doing so reducing the ability of the economy to function freely or forcing young teenagers to quit school and try to earn a living. These are, however, flimsy reasons in my opinion and cannot be used to deter the need to increase the minimum wage today.
Works Cited
Ehrenreich, Barbara. Nickel and Dimed: On (Not) Getting By in America. New York: Picador. 2011. Print.
