Should minimum wage increase?
“The bottom line is that five million low-income Americans working full time for minimum wage, deserve a raise,” says Jim Clyburn. The argument that has continued for years is whether the American federal government should increase the minimum? The two opposing sides on this argument are the Republicans and the Democrats. The Democrats are for minimum wage to increase, unlike the Republicans, who are against it and think of it as a job killer.
There are many reasons why the Democrats are for the increase of minimum wage. Currently, there are approximately 3.8 million people who are working at minimum wage or below it. Fewer than one in four minimum wage ...view middle of the document...
(Dickinson) This would drive a 10 percent reduction in poverty, which, this would help push the rate back down to where it was before Bear Stearns.
There are many reasons why the Republicans are against the increase of minimum wage. Their major concern is that if we were to raise the minimum wage there would be a decrease in jobs and the economy would be worse than it is now. The Republican Party thinks that jobs are not charities and that you need to work for your money if you want a raise. “You’ve gotta totally wipe out this notion of fairness,” says Rush Limbaugh. “That’s not what a job is. It isn’t charity.” Also, “When you rise the price of employment, guess what happens? You get less of it,” says a House Speaker John Boehner. (Dickinson) If the value for the job description is less than the prevailing wages for a worker to adequately fill the job description, then the employer does not need to create the job. (Coddington) The CBO projected that a major increase could reduce payroll by 0.3 percent or even 500,000 jobs. The CBO estimated that the GOP-led sequester killed 750,000 jobs last year. (Dickinson) Since the GOP-Led sequester killed a significant amount of jobs this is why the Republicans are strongly saying that minimum wage should not be increased.
There are approximately more than 85 percent of minimum wage jobs found in restaurants, retail, nursing homes and office buildings. Job descriptions such as mopping floors, deep-fat fryer and changing bedpans can’t be shipped somewhere else like Bangladesh. Globalization has already done its job on the American economy in today’s society. “These are the jobs that are left, and they’re left for a reason,” says Dube. (Dickinson) There are many major companies that could easily afford to increase their minimum wage. For example, Walmart could increase their pay to $12 an hour for its nearly 1 million low-wage associates by boosting prices just 1.1 percent at a cost to the average shopper of just $12.49 a year, or the price of a bag of Cat Chow. (Dickinson) The last time the increase of minimum wage was incorporated into the law was 2007 by George W. Bush.