Another Government Issue

The government issue I would like to talk about today is the minimum wage. The federal minimum wage today is 7 dollars and 25 cents per hour. That is awfully low for a family. While this amount would barely if even enough for one adult. Working 40 hour weeks this would earn a person just over 15,000. For someone who has a family this is not enough for a living. Instead if the minimum wage is increased to something more reasonable, not only would it create more jobs but it would allow for the circulation of more money. People will be making more money, therefore they will also be spending more. That is pretty much how the economy works. The more someone has to spend. The more they will spend. Also the poverty level would decrease as well. The newly created jobs will allow people to become employed, and it will also make more people be over the line of poverty. And with more people over the line of poverty, the government has to spend less on welfare programs for the poor. The government can then spend that money somewhere else where it needs it like highways or better education. Although increasing the minimum wage will not solve all the problems, it will help some of the important ones. Increasing the minimum is the solution America needs.

Comments

Jacob said…
While increasing the minimum wage sounds like it would be nice and lovely, there are so many factors to play into this idea that makes it such an unrealistically problem solver.
So here are a few reasons why I don't agree with the author when it comes to increasing minimum wages.
1.) By increasing the minimum wage you take the risk of inflation which inevitable will happen; Take for example a gallon of milk, what does it cost these days around 4-5 dollars? well by increasing the minimum wage you also have to pay this factory worker who helps produce the milk and get them out the stores more and now that the company has to pay them more, they are making less, so to increase their profit, they'll start by increasing the price of milk.
2.) What about those people who went to school to do what they do? Most Vet techs require some kind of 2-year degree behind them to be qualified for their job and on average they make around 15 dollars an hour, now you want to pay someone working at fast food the same amount? Auto technician, another good example who make around 15 dollars an hour, no doubt they had to learn that skill from a vocational school or at least spend some time under a shop to learn how to fix vehicles. I.T. guys (gals), Painter, Construction Worker, the list goes on. When you increase wages on jobs that take minimum skill to the same amount of wages like vet tech and auto technicians, you make these jobs become obsolete. Why do something that takes so much more work and time when I can just go sit at a cash register instead and make the same amount of money?
3.) layoff may happen, increasing wage may mean that business can't afford to keep everyone under their payroll. Which in terms will make the whole unemployment rates for America increase.

Overall my opinion on this is that the jobs that pay the least require the least, minimum wage jobs are supposed to be those of students working to better themselves or people who are just satisfied with how they are now. I believe that if you want to make more money you have to work hard to make more money, which in many cases requires getting a college degree or learning a skill of some type.
December 14, 2018 at 11:13 AM
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