Minimum Wage: It’s More Confusing Than We Think
Writing this article, I had hoped to show why we need to raise the minimum wage and that it’s a black and white issue. Yet, with more research, I realized my original idea lacked the proper knowledge behind it. The more I dove into the topic, the more I realized how important it is to show both sides of the argument. The history of minimum wage looks promising from where it started with the working class, although the debate is one of chaos within the American system. Raising the minimum wage can negatively impact our economy by increasing unemployment and closing the doors of many small businesses; however, increasing the minimum wage could provide greater financial security that many lack.
During the Great Depression in 1938, Roosevelt heard the demands of the labor unions and gave workers a federal minimum wage of 24 cents per hour. At the time, this was a great accomplishment. Over time our federal wage has increased to $7.25 an hour, but by 2019, state and local governments were able to dictate their own minimum wage. From there on, an abundance of different wages from $7.25-$15.00 has evolved. In 2019, a plan to raise the federal minimum wage to $15.00 an hour by 2025 sparked much debate in the Senate. Eventually, it was rejected by the senate, but the idea of a $15.00 minimum wage is still up for debate and pushed for by many progressives and may even become a reality.
With sudden increases in minimum wage, many could become unemployed, and businesses would be forced to increase consumer prices. In a Congressional Budget Office study, increasing the minimum wage to $15.00/hr by 2025 will leave 1.3 million people unemployed in an average week. With that increase, businesses will be forced to cut back on employees or increase the cost of goods, increasing the prices for the consumer; based on the hypothesis of a wage pushed inflation, corporations are forced to increase wages. All of these create an upset in the economy and can lead to possible inflation and further damage to the social aspects of individuals’ lives.
On the other hand, raising the minimum wage can bring more people above the poverty line and help with an overall increase in lifestyle. This raise could lift 1.3 mil Americans out of poverty, as most minimum wage workers are already using some form of gov. assistance. From an increase, many more Americans can have a higher buying power or the added luxury of financial security than before.
Now that our country is stuck in this void, what do we do? That’s up to us when casting in our ballots and activating for what we the people want. I will leave you to make your own conclusion about minimum wage based on these facts because it isn’t a black and white issue. Through this piece, I’ve learned that everything comes with a sacrifice and for this one, do you sacrifice the economy or the people?
Rowan Finney • Dec 18, 2020 at 3:27 pm
Great article! I always think it’s cool when writers admit that they changed and/or updated their ideas- I think it’s pretty brave. I’ve actually never thought about how there could be more than one point of view on minimum wage, except that some people don’t get paid as much as they should for the work they’re doing. I’ve worked two minimum wage jobs, and your article made me realize that if minimum wage increases, so will the prices of everything, from clothing to food to school supplies. America already has been dealing with loads of inflation, so I think it would be smart to avoid causing more inflation. This was super educational!
Sam McDiarmid-Sterling • Dec 14, 2020 at 10:54 pm
Nice job! You did a great job weighing the benefits and drawbacks of increasing minimum wage. I could definitely empathize with the stance taken in the article; previously, I had only thought about the benefits to the workers who receive a higher wage. I don’t think there is a clear solution, and it seems like a tricky balance between giving workers more money as well as economic stability who will re-invest their money, while small businesses might have to close their doors. Additionally, I agree with your claim that the issue of minimum wages has become increasingly political over the past few years. For example, President-elect Joe Biden will most likely seek to raise the minimum wage (if he changes it at all), while President Trump would almost certainly not. Overall, this is an amazing article!
Annika McMillan • Dec 14, 2020 at 1:44 pm
I found this article very interesting to read. I think that people initially would not think that raising minimum wage could have negative effects so you make an important point. There will always be issues that come up which is why it is important to take other perspective into account other than your own. I like how you end your piece with a question to the audience asking them to choose between “the economy or the people.” It brings everything together very well and made me rethink the impact of increasing minimum wage.
Grace • Dec 12, 2020 at 9:02 pm
It is always important to consider the many sides of an issue, because it really does lead to better solutions. The negative effects of a higher minimum wage are interesting to consider. The point about business having to cut back on employees or raise costs is good, but at what level would that actually be affecting certain businesses? I understand how small, independent ones would possibly struggle, but larger ones could counteract both of those possible problems by dipping in to the large amounts of profit they already make to make up the difference. All in all, good article!
Olivia Wong • Dec 10, 2020 at 2:13 pm
I have never thought about minimum wage from a different point of view than just wanting more money. It is really interesting to actually read about how raising minimum wage can really negatively impact our economy, raising unemployment rates and poverty. Thinking about the other side of minimum wage makes me think that maybe minimum wage should just stay where it is and not keep getting higher. The Great Depression fact is also super interesting to know and I also didn’t realize that it was only last year that states were able to dictate their own wages. Very educational!