Should the Federal Minimum Wage Be Increased?

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Should the Federal Minimum Wage Be Increased?

Introduction

Former Californian governor, Jerry Brown, is famous for this quote: The minimum wage has not kept pace with rising costs. Within the past two decades, the United States has witnessed an increasing population. Most of the countrys citizens continue to encounter numerous challenges, including rising costs for primary goods, demand for additional medical services, and increasing daily expenditures. With living costs on the rise, many people in this country propose that the government should increase the federal minimum wage. However, some groups still believe that the move could be counterproductive since some people still remain unemployed, homeless, or underpaid. There is a need for the government to increase the current minimum wage since the strategy will allow employees to feel adequately rewarded, help maximize employment opportunities in informal sectors. The initiative will work synergistically with other programs already in place to fight social challenges and improve overall social mobility.

Increasing the Federal Minimum Wage

Reasons against Increasing the Federal Minimum Wage

The history of minimum wage in the American society goes back to the first half of the 20th century. In different jurisdictions, the term minimum wage would refer to the lowest amount in monetary terms a special law permits (Cengiz et al. 1451). Most of the lawmakers and proponents for a better life engaged in efforts that led to new debates regarding the issue of hourly remuneration. Over 50 percent of the countrys population now live in areas subject to wage floors above the federal minimum of $7.25 per hour (Romich and Hill 22). Some supporters and analysts have over the years acknowledged that the concept of a minimum wage has the potential to alleviate poverty. However, a number of scholars have presented strong evidence to describe the possible impact of minimum wage on increased unemployment and reduced living standards. Due to the nature of these opposing views, the debate still continues regarding the need for the American government to increase the federal minimum wage or not.

The opposing views regarding the question of increasing salaries revolve around the governments inability to afford such expenses and the need to address other social problems, including unemployment. In his work, Leigh uses the case of the American healthcare sector to explain why the government is unable to sustain a higher wage of above $7.25 per hour (206). Currently, some skeptics argue that the country has an increasing wage bill and spending intended to focus on all determinants of health and citizen welfare. In some cases, Leigh is convinced that an increment in the minimum wage could discourage workers earning more and make it impossible for them to offer better services (207). Unemployment and homelessness are some of the notable arguments many analysts present to challenge the outlined thesis. Nonetheless, most of the studies completed in the past have proved otherwise since an increasing minimum wage promotes growth in business sectors while increasing employment opportunities (Cengiz et al. 1451). A balanced approach would, therefore, be appropriate if more people are to benefit from a higher wage.

Reasons for a Higher Federal Minimum Wage

The above opposing views are worth challenging since an increasing salary is necessary due to the rising costs of commodities and services and the global rate of inflation. While the idea to pursue such a move could burden the government, the benefits would outweigh the possible problems and help improve the overall life experience of the average American citizen. Bruckmeier and Bruttel acknowledge that the minimum wage is often considered a social policy instrument that can help reduce both poverty and welfare receipt (247). Currently, around 90 percent of nations across the globe have presented specific laws and policies aimed at setting acceptable minimum wages for various sectors (Bruckmeier and Bruttel 247). The move to adopt most of these regulations arises from the possible benefits of an increasing wage and how it helps cushion citizens and empower them. Based on this understanding, the American federal governments and key stakeholders should be more concerned and increase the current minimum wage to help address numerous social problems.

The decision to increase the minimum federal wage in the United States will make it easier for the government to reduce its expenditures on Medicaid and other social programs already in place. The current minimum wage creates a scenario whereby more citizens are compelled to enroll or get taxpayers funds in the form of housing vouchers or other programs intended to deal with poverty (Leigh 206). Coupled with the number of jobless citizens, a lower minimum wage has been leaving more people vulnerable and incapable of leading high-quality lives. The decision will allow different employers to consider reviewing their salaries upwards. These measures will empower more individuals and ensure that they can afford most of the required primary goods, medical services, and lifestyles.

In the American society, a higher federal minimum wage has the potential to reduce the level of income inequality in the country and all the social ills associated with it. In his study Leigh observed that the United States was one of the countries in North America facing the challenge of social injustice (206). This predicament was directly linked to stagnating wages and disparities in workers salaries. When implemented, the move could help minimize cases of animosity against minority groups in the country. According to Leigh, better salaries for many individuals from underprivileged communities could empower them to overcome opioid crises and increasing cases of criminal activities (206). More people would lead better lives and be in a position to pursue their social and economic aims.

The governments decision to review the current minimum wage has trigger new changes and improves the overall performance of other low-income sectors. When more workers in the country earn better salaries, chances are high that they will have more disposable income that will circulate in the economy. Such a move will allow workers in the informal sector to become more innovate and lead better lifestyles (Bruckmeier and Bruttel 248). The identified beneficiaries could also engage in additional business activities and help improve the overall performance of the economy (Jacobs et al. 4). The findings by Cengiz et al. support this argument by revealing that a higher minimum wage could result in more pronounced employment opportunities (1451). Consequently, such gains can help alleviate poverty and allow more citizens to meet the changing demands of their dependants.

A normative approach supports a higher minimum wage since employees need to earn depending on the nature and complexity of the work they do. Most of the studies conducted in the past have reviewed the technicalities, time, and skills individuals require to complete most of their tasks. When these individuals feel underpaid, chances are high that they might become less productive and affect the quality of services available to more citizens (Bruckmeier and Bruttel 262). On the other hand, a decent pay is known to improve workers morale and ensure that the rendered efforts are for the wider good of the society. Organizational theorists go further to acknowledge that individuals need to feel more empowered and satisfied with their working environments. Without competitive salaries, the government can realize that most of the projects it undertakes to address social problems become less productive. This aspect shows conclusively why a higher minimum wage is critical for professionals working in different sectors.

Finally, a higher minimum wage works synergistically with other programs implemented to reduce poverty to cushion citizens and deliver positive economic indications. In their study, Romich and Hill argue that there is a need for the American government to maximize minimum wage to $12 per hour and temporary expanding an existing employer tax credit (22). When done correctly, these measures can help reduce costs for most of the projects put in place. The move will make it possible for most of the people to experience upward mobility and be in a position to lead high-quality and contented lives. Consequently, the efforts will play a positive role towards alleviating poverty and social challenges many societies in the country continue to face.

Conclusion

The question of minimum wage remains a contentious topic in many jurisdictions across the globe. Some skeptics view the idea as counterproductive and capable of triggering unanticipated unemployment rates. However, the available evidence from the consulted publications support a minimum wage since it helps overcome social problems while improving growth in various sectors. Based on these facts, the American federal government needs to review the current minimum wage and increase it to augment most of the social welfare programs already in place and help more citizens transform their overall life experiences.

Works Cited

Bruckmeier, Kerstin, and Oliver Bruttel. Minimum Wage as a Social Policy Instrument: Evidence from Germany. Journal of Social Policy, vol. 20, no. 2, 2021, pp. 247-266.

Cengiz, Doruk, et al. The Effect of Minimum Wage on Low-Wage Jobs. The Quarterly Journal of Economics, vol. 134, no. 3, 2019, pp. 1405-1454.

Jacobs, Ken, et al. The Public Cost of a Low Federal Minimum Wage. UC Berkeley Center for Labor Research and Education, 2021.

Leigh, J. Paul. Arguments for and against the $15 Minimum Wage for Health Care Workers. American Journal of Public Health, vol. 109, no. 2, 2019, pp. 206-207.

Romich, Jennifer, and Heather D. Hill. Coupling a Federal Minimum Wage Hike with Public Investments to Make Work Pay and Reduce Poverty. RSF: The Russell Sage Foundation Journal of the Social Sciences, vol. 4, no. 3, 2018, pp. 22-43.

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