The hot topic on politics and business news is the increase of minimum wage in America. Since the beginning of his election, Obama had on his planner the increase of minimum wages from $8.25 to $10.10. Many workers in America are really looking forward on the incoming changes, where some McDonald’s workers went on a strike to emphasize the importance of this topic and the impact in their life. In the news recently, Obama also highlighted the importance of increasing the minimum wage in America. Even though many middle class workers might like this idea, there are many other complications that can be created from this transition. Everyone would like to have a higher wage, but increasing the minimum wage might have an effect on different companies, in a sense that many companies cannot afford paying their workers with higher wages. In every economical change there are many uplifting things that happen, but also there are downsidse to them. If we increase the minimum wage, every other profession would ask for an increase as well. Someone that makes $100,000 a year, would also ask to make more. In the economy status that the media exposes us to it seems that that wont be possible to do. In the same time, someone that makes minimum wage does struggle at this time to keep up with bills, raising kids, etc.., as the prices of products are also increasing starting from gas to household products.
Many studies have been happening on this topic and it seems that with an increase in wages it would lead to 500,000 loss of jobs; also the study showed that higher wages would push 900,000 people above the poverty line. As Obama’s team is pushing for this change to go through, their opponents argue that the money spend on this issue should be spent on education and job training, this way workers can better themselves with a better education and more prepared for their jobs.
I think our current federal minimum wage, which hasn’t been raised since 2009, seems unreasonably low, but I also wonder if a nearly 40 percent increase isn’t asking a bit much. If it’s going to be raised, it should be tied to inflation so it exists as part of our economic philosophy and can’t be used as a political cudgel. I realize this is impractical in an era of partisan politics, but what I’m in favor of is a comprehensive approach to making life better for American workers. And that will require both sides to compromise.
If the minimum wage is raised, I’ll be happy for the working people who benefit and hopeful that the outcomes will be as good as promised. But if all we do is raise the minimum wage, I’ll worry we’re missing a chance to lift people out of poverty for good, and that a few years from now, we’ll be having this same conversation — again.