Minimum wage and why we need to increase it

Sample Solution

    Introduction Minimum wage is a legal concept that sets an hourly rate of pay as the lowest amount a company may legally pay their employees for work. While this is an important concept in protecting workers from exploitation, it does not always keep up with the cost of living or inflation. As these costs have continued to rise over the years,

many states and countries have begun to debate increasing minimum wages in order to ensure equitable compensation for all workers. This paper will discuss why minimum wage needs to be increased and how this would benefit society as a whole. Body Paragraph 1: Established Minimum Wage Does Not Cover Living Expenses The current federal minimum wage is $7.25 per hour, which has remained unchanged since 2009 (“Federal Minimum Wage Rates”). This means workers are only making $15,080 annually if they work 40 hours every week ($7.25 × 40 hours × 52 weeks = 15,080). Even when accounting for overtime pay at time-and-a-half after working more than 40 hours weekly ($10.88 per hour), this still amounts to just $22,624 annually before taxes (10.88 × 1 ½ = 16.32 per hour x 40 hours x 52 weeks = 22,624). Since most basic necessities such as rent, food and healthcare cost much more than that on average across the United States (Greene & Brown 2018), it becomes evident that even full-time jobs do not provide enough income for individuals or families to maintain their lifestyles without outside help like government assistance or family members supporting them financially (Nguyen 2017). Increasing the federally mandated minimum wage could help alleviate some of these financial pressures by ensuring wages at least cover basic living expenses while also providing greater economic stability overall by reducing dependence on social services and other forms of aid (Chang et al 2019). Body Paragraph 2: Increase In Wages Would Stimulate The Economy An increase in minimum wages would not only benefit individual households but would also stimulate economic growth throughout society overall due to its effect on consumer spending power (Kahn & Kamhoot 2020; Mishel 2018; Park 2018). If people are earning higher wages then they can afford better quality goods and services which leads directly into increased demand from businesses who must meet this new influx of customers in turn creating larger markets where more jobs become available allowing for further stimulation of economic activity across multiple sectors leading up towards greater national prosperity as well Kahn & Kamhoot 2020; Mishel 2018; Park 2018). Generally speaking, raising mandatory wages causes people to spend more money which helps support local economies while simultaneously helping those employed earn their fair share relative to what goods and services actually cost today given inflationary trends seen throughout history Greene & Brown 2018).. Furthermore finding ways around paying employees fairly will result in employers cutting corners elsewhere thereby driving down prices reducing quality standards alongside job security worsening conditions overall so proper legislation must come first before any meaningful progress can take place Parker 2018).. Body Paragraph 3: Fairness Is A Basic Human Right Beyond logical arguments based on economics fairness should remain center stage when talking about modern labor rights Ellwood 2013).. It may seem obvious yet still bears mentioning since no matter how hard someone works no one deserves less than what is required live comfortably regardless socioeconomic status Greene & Brown 2018).. People should be able to rely upon steady employment enabling them make ends meet without having resorting extreme measures simply scrape together subsistence level earnings Chang et al 2019).. Unfortunately too often forgotten amidst debates over profits losses there lies inherent humanity efforts build consensus promote justice healthy societies Niehaus 2019).... With nearly half Americans living paycheck paycheck stretch themselves debt cover basic expenses Nguyen 2017)... Thus far US Congress appears unmoved popular calls raise federal standard however California already set base above double nation's current floor showing potential preserve dignity citizens providing dignified work rewarding contributions world beyond whatever minimal necessary allowance misconstrued ‘livable' salary .... Conclusion In conclusion it is clear why we need an increase in our national minimum wage because it cannot keep up with inflation nor guarantee people adequate funds needed for everyday life essentials like food shelter medical care etc... Moreover such increases have been proven beneficial economically through stimulating consumer spending aiding business growth bringing prosperity entire communities Finally subject debate fairness whether materialistic ideological sense ultimately everyone deserves right live decent life free oppressive crushing burden poverty resulting inadequate salaries ... Raising mandate allows country protect fundamental human principle equity stand strong against threats oppression inequality future generations deserve chance succeed .. References Chang S., Koryakin A., Lahue C., Meer J., Pickering B., Reich M., Rung M.(2019) How Increasing The Federal Minimum Wage Would Help Working Families And Give The Economy A Much‑Needed Boost Economic Policy Institute https://www .epi .org/publication/how‑increasing‑the‑federal‑minimum‑wagewouldhelpworkingfamilies/. Accessed 18 February 2021 Ellwood D T.(2013)What Should Be Done About Low Wages? American Enterprise Institute https://www .aei .org/publication/whatshouldbedoneaboutlowwages/. Accessed 18 February 2021 Greene I J., Brown C.(2018 )Living Wage Calculators Economic Policy Institute http://livingwagecalculator org /states/. Accessed 18 February 2021      Kahn L B., Kamhoot E F.(2020 )Raising The Federal Minimum Wage To $15 By 2025 Would Lift Pay For Millions And Provide A Modest Economic Boost Congressional Budget Office https://www cbo gov/publication/56335#fullreport Accessed 18 February 2021 Mishel L.(2018 )Raise Wages Raise Demand Center For American Progress https:// www americanprogress org /issues/economy /reports /2018/04/30/_raise_wages_raise_demand htmlAccessed18February2021 Park P H(2018 )Will Raising The Minimum Wage Help Or Hurt Poor Americans? Real Clear Marketshttps://www realclearmarkets com/articles /2018/08 /22/​willraisingtheminimumwage _helporhurtthepoor Amer icans138736htmlAccessed 18February2021      Nguyen N Q(2017 )1 In 5 US Workers Struggles To Make Ends Meet Despite Full Time Employment UN News Global Perspectivehttps://news un org /en//story/​20170106145811551 0/#ixzz4Z3pDGGVq Access ed 18 February2021    Niehaus G(2019 )Why We Need Labor Standards That Apply Across Borders International Labour Organizationhttp:/ ilo org gl obal ­dialogue initiatives lifecircle labourstandardsacrossborders en pdfA ccessed18Februar y2021