Zach Fritzsche

Introduction  Over the years inflation in America has taken place over time from over sea consuming and economic change.  However in all these changes that have taken place over the year there has been one thing that has remained at a standstill which is minimum wage.  Raising minimum wage and its benefits it withholds as well as the potential failure it posses. If raising minimum wage will aid in eliminating poverty.  The need for a higher minimum wage and look into the resulting factors to help families be able to live on a sufficient income that will benefit all of America’s social classes.

Findings  In America poverty is more abundant.  People are unable to find jobs and provide for their families many of which are single mothers.  Women typically in divorce take custody of the children when previously didn’t handle the financial burden. Of family households headed by women 52% have incomes below 25,000 dollars, and 19.7 with 10,000 or less as their income.  These numbers are startling and contributing factors such as race interfere with the ability to escape being poor.  there are intervening variables that contribute to Americans having a 60 percent chance of living at least one year below the poverty line.

Pros  Stimulates the economy: More money to spend.  Provides more jobs: Businesses are earning more from people spending more therefore there is an increased need for jobs, also from people no longer needed 2 jobs.  Reduces expense for social programs: Many of the families at this minimum wage also rely of the governments social programs to provide for their families such as welfare. At a raised income this would eliminate some of families reliance on these programs.  Decreases turnover rate: Once employees are satisfied with their income there will be less time in training new hires because of the loyalty of the current employees.  Reduces Inflation: Rises every year where as minimum wage only has 3 times in 3 decades, would battle inflation and allow a more affordable lifestyle.

Cons  Layoffs: If a company has a tight compensation and wage increases they may have to lay off some employees to make up for it. So some employees will make more while some don’t at all.  Price increase: Businesses may increase their products to provide the income for their employees which has the potential to create the ripple effect and make cost of living go up which defeats the purpose of raising the wage to begin with.  Fewer hires: Companies will not retain as many employees or go to other countries to employ people that will work for less than an hour.  Competition increase: More experienced individuals will be fighting for a minimum wage jobs that will eliminate the under experienced younger hires that are trying to build a resume for themselves.  Applied inconsistency: Some states already have increased their minimum wage such as Washington that is at 9.32 an hour. So it could create a affect of all jobs needing an increased salary, not just minimum.

Conclusions  Raising the minimum wage will be positive. Raising the minimum wage will give families the income needed to sustain a healthy lifestyle for generations to come.  The current wage is hurting America: With wage has fallen in value by 1/3 since its peak in This isn’t doing America any good in creating the powerful country it desires to be and fulfilling the American dream.  Time for a change: There comes a time that change is needed in places it’s been neglected. The time is now and the adjustments will be attended to but it’s time to make this change now.  It will stimulate the economy rather than cause inflation: As I stated in the list of cons, there could be the potential that companies inflate the costs of goods and this could cause a ripple effect into cost of living; however, I don’t believe that will happen. I know that this change will stimulate our economy and cause economic power, growth in business and increased need for jobs to sustain the increased need for output.

Resolution The goal is to have this effective by 2016; a minimum wage starting at $10.10 an hour, reshaping our country into the powerhouse, self-sufficient country it’s meant to be.  There is no greater way to bounce back from the recession than starting off America to a fresh start with an hour.  Never been better timing. Companies and citizens will both benefit in its entirety, once there is a problem as great as poverty there should be action taken.  Achieving the American dream will once again be a reality.  Implementing this change will stimulate all aspects in social class including the rich, and allowing poor to live again.  Grow a value and desire to work, further educations and obey laws.

Sources  1. United States Department of Labor  2. Martin, Clancy. Honest work, who gets what and why case 5.6. New York. Oxforduniversity press,  3. CNN Money  4. When I work raising-the-minimum-wage/ raising-the-  5. USA today /1101/statelinefood-stamps/ / /1101/stateline  6. The white house  7. Raise the Minimum wage: minimum-wage  8. National conference Of State Legislatures: wage-chart.aspx