Empowering the Workforce: The Economic Benefits of Minimum Wage Increase - Paper Example

The minimum wage increase would lead to development in the economy. Almost $120 billion extra given to employees would be taken to the economy to cater to basic needs such as food, rent, and clothes (Meer, 2016). Economists have realized that increasing the power of purchase by directly placing money in people's pockets to be spent by consumers has a positive wave of effects on the whole economy. In a recent poll,67% of small business managers are supporting the minimum wage rise to $15/hour. They argue that this would increase the demand by consumers hence they would retain or employ other workers. Wage increase does not appear to force employers to reduce jobs. Studies have not found any statistically major influence on the workforce, as cities and states across the nation have increased pay.

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Increased wages would reduce the use of government plans and save the taxpayer’s money. Employers are always forced to seek assistance from the government when they are not being paid enough to survive, this means that taxpayers are funding the corporations (Meer, 2016). In 2016, the Economic Policy Institute discovered that, amongst the recipients of public help, the majority are employed or have a working member of the family; they are found at the lowest part of the wage scale. If workers are offered a wage increase, it would explicitly reduce the total spending on public aid, mostly among employees impacted by a national minimum salary raise.

A huge majority of Americans are for the idea of a wage increase. More than half of the states have increased the minimum pay to reinstate simple equity in the labor force. Every job has pride and value. After 10 years of hard work, employees earning low wages warrant a rise to prevent them from poverty.

There is no doubt that the minimum wage has been a success. It has been greatly supported by those in the political arena and the public; although it is shocking how only a small number of employees receive it, it also seems to have more collective effects on pay inequity than expected. It has continued doing so without clear hostile effects on labor. Despite the success, we are in a bizarre position of opposition. Our direct attention is paid to low economic conditions. However, with the predictions now recommending a unique constant squeeze on incomes, even after advanced revenues, there has been a shocking minimal proposition of a more determined, long-lasting approach on how the NMW might be used, one of the few recognized gears for raising low-end payments, after the return of economic growth.

The failure to increase the state's minimum income has for the longest time deprived American laborers of improvement in terms of the quality of life. Even after regulating the increase, the lowest earning employer still receives a salary lower than what their colleagues were paid in the previous years. Increasing the national minimum salary will ensure that even the least paid employers are not living in poverty. Additionally, automatically increasing the minimum wage will raise the median salary increase, and low-earning employees will share a similar route of salary increase with the labor market at large.

References

Meer, J., & West, J. (2016). Effects of the minimum wage on employment dynamics. Journal of Human Resources, 51(2), 500-522.

Jardim, E., Long, M. C., Plotnick, R., Van Inwegen, E., Vigdor, J., & Wething, H. (2017). Minimum wage increases, wages, and low-wage employment: Evidence from Seattle (No. w23532). National Bureau of Economic Research.

Giuliano, L. (2013). Minimum wage effects on employment, substitution, and the teenage labor supply: Evidence from personnel data. Journal of Labor Economics, 31(1), 155-194.