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5 reasons to raise the minimum wage

Updated on October 6, 2015

5 reasons to raise the minimum wage

The issue of raising the minimum wage is a hot button topic that has stoked controversy in the national dialogue on the same. You will hear many pundits and experts talking about the dangers of raising the minimum wage. Some will boldly claim that raising the minimum wage for all workers in the country will lead to massive layoffs as employers will not be willing to bear the burden of increased labor costs. However, the truth is a little more complex than that. The following are some of the reasons that will show you why it would be wise to raise the minimum wage:

A higher minimum wage does not lead to fewer jobs

Economic research conducted at different times in history has yielding interesting results on the effects of raising the minimum wage. It has been determined that raising this wage will not lead to any significant negative change in the employment of workers across the board. In fact, the raising of this wage will lead to a stimulant effect on the economy as workers will have more discretionary income to spend on buying more goods and services.

Business owners support raising the minimum wage

Surprisingly enough, business owners and employers support raising the minimum wage so as to better motivate their employees to work harder and better while on the job. A survey conducted in June 2014 by The American Sustainable Business Council found that over sixty percent of small business owners are in favor of gradually increasing the minimum wage and thereafter keeping it pegged to the annual cost of living.

The value of the current minimum wage has drastically decreased

While the rates for workers have remained the same since the last raise in 2009, inflation has eroded the value of this rate. This is due to the fact that the rise in prices of essential commodities such as milk and bacon has risen (21% and 67% respectively according to numerous sources such as The Bureau of labor statistics and The Economist). A bump in this wage would go a long way to accurately represent the reality on the ground.

Productivity has increased while wages have stagnated

It is also important to point out that the productivity of workers across the board has increased while their wages have stagnated at the same point for years. If we were to use the 1968 minimum wage as a benchmark, then workers today should be paid at least 21.72 US dollars per hour. Sadly, this is not the case.

There is a lot of political goodwill on the issue

The icing on the cake is that there is a lot of bipartisan support favoring the increase in the minimum wage that workers ought to earn. This is something that everyone should take advantage of to effect the changes needed so as to not get involved in muddy politics when one party decides to back out and oppose the suggested increase in workers’ wages.

These are the five reasons why increasing the minimum wage is a good idea.

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    • profile image

      nguyennam 

      2 years ago

      And companies should be paying whatever they want. Most do. it's called freedom

    • nicomp profile image

      nicomp really 

      2 years ago from Ohio, USA

      "From the trillions given to the banks and Auto bailouts."

      Where do you think that money came from?

      " Instead of paying one gov. employee 120k, pay two people 60k "

      Can we do that to your job?

    • Doug Cutler profile image

      Doug Cutler 

      2 years ago from Temperance. Mich

      From the trillions given to the banks and Auto bailouts. Demand it back and doll it out to the people who buy goods and services that the fed will get biz taxes back of about 37%, or whatever, right off the top.

      Eliminate all the unnecessary alphabet soup agencies. Instead of paying one gov. employee 120k, pay two people 60k The rest into the fund.

      There are plenty of ways. Shrink the "F" out of gov. Canada did it!

    • nicomp profile image

      nicomp really 

      2 years ago from Ohio, USA

      "But am saying there also should be a make up paid to households that are stuck because of greed or need of those companies not paying their employees a living wage."

      Where does that make up come from?

    • Doug Cutler profile image

      Doug Cutler 

      2 years ago from Temperance. Mich

      I agree a company should pay what it wants. But am saying there also should be a make up paid to households that are stuck because of greed or need of those companies not paying their employees a living wage. Tis the right and moral thing to do. The heads of households cannot turn down reasonable available work either without good reason.

      I remember before 9-11 there was such a shortage of workers here that companies had to pay over min. to keep them from going to greener pastures. Now the opposite. Hard to find 40hr jobs even at min. The ave. livable wage is now around $12 hr. on a 40 hr week. Higher on the coasts.

    • nicomp profile image

      nicomp really 

      2 years ago from Ohio, USA

      "So? The constitution is what the gov. can't do, not what it can. Somewhere there are laws about min. wage. Otherwise companies would pay whatever they want."

      Completely wrong, but OK. The Constitution grants specific powers to the federal government and leaves everything else to the states. It is completely about what the feds can't do: they can't do anything that is not explicitly delegated to them.

      And companies should be paying whatever they want. Most do. it's called freedom.

    • Doug Cutler profile image

      Doug Cutler 

      2 years ago from Temperance. Mich

      So? The constitution is what the gov. can't do, not what it can. Somewhere there are laws about min. wage. Otherwise companies would pay whatever they want.

      I say they should have the interest of all the citizens in mind and not just a few. What is good for them should also be good for us. Same with any biz. Is a living wage too much to ask for? Each state can elect to pay more but not less than the min. determined by the fed. Things should be improving not going backward. Moral decency not strict laws.

    • nicomp profile image

      nicomp really 

      2 years ago from Ohio, USA

      Nowhere in the US Constitution is authorization for any branch of the federal government to coerce employers to pay a minimum wage.

    • Doug Cutler profile image

      Doug Cutler 

      2 years ago from Temperance. Mich

      Not as it is presently.The population is fed up with the gov. Especially the last 7 years. Time for a new gov, using the constitution as a guide and more like the founders intended with the amendments basically as are current.

    • nicomp profile image

      nicomp really 

      2 years ago from Ohio, USA

      Its funny that you think the government can make things fair and just.

    • Doug Cutler profile image

      Doug Cutler 

      2 years ago from Temperance. Mich

      Some things are better.We live longer and are safer now then even a few years ago.

      As far as things go in the U.S. You are looking at a how a small % of the population earns. The ave. has been a 40 hr week from before WWII. And was considered the model till recently when politicians screwed things up.

      I want wages to be fair and just. Get the system down to where it takes only one income like after WWII. Weather that is with a little help from the gov. or less greed from biz and unions.

    • nicomp profile image

      nicomp really 

      2 years ago from Ohio, USA

      "What is wrong with one 40 hr. wage being high enough to pay all your bills? You seem to want everyone but a few to have a crappy income."

      The problem with a "40 hr. wage being high enough to pay your bills" is that 40 hours is arbitrary and your bills are arbitrary. I work 60-70 hours a week now because I desire that standard of living: should Obama decree that my employer pay me more? And I'm salaried so hours don't matter anyway.

      I want everyone to have the income they merit. You want government to nanny everyone.

    • nicomp profile image

      nicomp really 

      2 years ago from Ohio, USA

      " Things should be better than before."

      Nonsense. No one can make that assertion. "Things" ebb and flow. Politicians brainwashed us into believing that "things" should continue improving.

    • Doug Cutler profile image

      Doug Cutler 

      2 years ago from Temperance. Mich

      Tell Obama that. I am just the messenger of what he said. I never said everything should be as before. Things should be better than before.

      Certainly isn't today!

      What is wrong with one 40 hr. wage being high enough to pay all your bills? You seem to want everyone but a few to have a crappy income.

      Most people in my neck of the woods. Mi. Use private vehicles. Even when I lived in Toledo till 40, never used a taxi serv. Buses occasionally. Uber is a mute point with me.

      Women can go if they want. Just don't become a liability in a fight. Or woose down the military physical standards.

    • nicomp profile image

      nicomp really 

      2 years ago from Ohio, USA

      "Not an obligation. Just the way it was then by most ave. families. Mom stayed with kids and raised family. Moral in that sense."

      It's not up to Obama to make things "The way it was then." Should he shut down Uber because "The way it was" was we used Taxis?

      Should he ban women from the military because "The way it was" was that women we not exposed to combat?

    • Doug Cutler profile image

      Doug Cutler 

      2 years ago from Temperance. Mich

      Obama just today stated that the ave. fam. should get $50k a year. He lives in high rent area. Here in Mi. it is about $32k. That = $16 hr. Every head of household should get a parity amount depending on fam. size up to 4 or 5 then drastically less for any after. Those not heads of house will get whatever the min wage is as now.

      I believe this could have been easily achieved instead of the trillions gave to the banks and big biz.

    • Doug Cutler profile image

      Doug Cutler 

      2 years ago from Temperance. Mich

      Not an obligation. Just the way it was then by most ave. families. Mom stayed with kids and raised family. Moral in that sense.

      Obama in the last couple days has come out and said that every full time worker should be able to support themselves. His $10.10 proposed min wage is based on a 40 hr week. Now the ave. week is 30 hrs. So, a new make up wage should be about $13.50. Closer to the $15 the fast food workers think they are worth. Obama's "new normal" type job.

      A household requires more. I propose a forever hour wage like a forever stamp.

      The hr will always be worth 1/30 th of what is takes to live on for the ave. and weighted for high rent areas. Per my hubs.

      At present, and as born out in the past, every time min. wage goes up the unions and others get a huge increase in their wage and the prices sky rocket. The last to get a raise are the ones needing it the most. A forever hr would nip this in the bud.

    • nicomp profile image

      nicomp really 

      2 years ago from Ohio, USA

      "You are right Nicomp. We should allow business owners to keep their workers and all of the rest of these workers grovelling in poverty. "

      Indeed, HSchneider, that is what happens. Evil Business Owners enslave workers across the fruited plains. Devious McDonald's owners ensnare unsuspecting teenagers with the prospect of money and free food. The unqualified employees are taught responsibility, time-management, and co-operative skills. Those poor kids eventually grovel off to college, none the wiser that they are now somewhat qualified to participate in society.

      It's a conspiracy. Someone should look into this.

    • nicomp profile image

      nicomp really 

      2 years ago from Ohio, USA

      @Doug Cutler : You operate under the unspoken assumption that only one income per household is a moral obligation. This is specious. It is not the role of government to legislate proper income levels. It is not within the purview of Obama to decree a fair wage.

    • Doug Cutler profile image

      Doug Cutler 

      2 years ago from Temperance. Mich

      The 1968 min. wage was about 50% of the then average income of $3.50 an hour. 1968 being the highest min. wage was in relation to the ave. wage. The $10.10 Obama proposes is about what 1.60 bought in 1968. $21.72 is way more than what the ave. wage is. The family income has lost ground since 1968. Now. if you say ave. wage should be $21.72 min. wage would be the $10,10. I would say ave wage is around $12. This is why it takes two incomes just to break even now.

    • profile image

      Howard Schneider 

      2 years ago from Parsippany, New Jersey

      You are right Nicomp. We should allow business owners to keep their workers and all of the rest of these workers grovelling in poverty. That way they reap the wealth and keep the economy stagnant. It does not make any sense at all to have all workers make a living wage and then spend it to keep our economy alive.

    • profile image

      Howard Schneider 

      2 years ago from Parsippany, New Jersey

      Great Hub, Superfly. Raising the minimum wage substantially is both humane and will stimulate the economy not contract it. That is because the people receiving these wage increases must spend them not hoard them away.

    • superfly092 profile imageAUTHOR

      superfly092 

      2 years ago

      Thank you all for your comments

    • profile image

      Lahari 

      2 years ago

      That was a very nice article with quite reasonable arguments.Every commodity price is increasing except the minimum pay.How are people going to survive if the pay isnt increased

    • profile image

      Cynthia Glidden 

      2 years ago

      I think raising the minimum wage would benefit the workers especially the single Mom that has a few siblings to take care of . I would make it worth it for them and be happier and stick to there job at hand.

    • profile image

      SANTA 

      2 years ago

      thanks for nice article

    • profile image

      robspudz 

      2 years ago

      Thanks for this article, hoping it gets more traction in the political discussion leading up to the 2016 elections.

    • profile image

      A.Selvaraj 

      2 years ago

      Good article which is really talking about the social issues the salary level has to increase.

    • profile image

      Ramesh 

      2 years ago

      Expecting more reasons for raising the wage

    • subathrasankar profile image

      subathra sankaranarayanan 

      2 years ago from Chennai, Tamil Nadu, India

      This is a great article. Every body should support the equal wages of every one. Every body had a equal rights to have their wage for their work. Very informative and nice article.

    • profile image

      Judy Workman 

      2 years ago

      I think they should raise minimum wage. The cost of living is always going up and paychecks don't go up enough to keep up with it. the money needs to circulate so people can buy more and get the economy going again.

    • profile image

      Samane R. 

      2 years ago

      In my opinion, raising the minimum wage would affect growth of startups who may not afford to pay that much. Instead, it should be kept in a manner everybody could afford it. Those who can pay more, and want to hire the best talent would obviously pay more.

    • profile image

      Sumathy B 

      2 years ago

      Very good and useful article.

      Here real 5 reasons are explained for minimum wage increment.

      It is useful for analyzing about workers.

    • profile image

      Sumathy B 

      2 years ago

      This site is about increasing the wage for workers.

      This is really nice and good article to read.

      Good sub topics too.

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