Please enjoy this article from DMHS's "Introduction to Journalism" class.
Considering the economic state of the United States with inflation, house costs, food costs, and many other factors, a minimum wage job will not get you far. An average minimum wage worker will make about $28,392 a year. After factoring in the average cost of rent, utilities, water, food and other necessities, you will come out at the end of the year with about $1900 that hasn't gone into only bills. This isn’t factoring in car payments, repairs, or other things that can come up.
The minimum wage has been a topic of debate for decades, with advocates arguing that a higher minimum wage is essential to combat poverty and improve the standard of living for low-wage workers, while opponents claim that a higher minimum wage would result in job loss and inflation. In recent years, the push for a higher minimum wage has gained traction, and many states and cities have increased their minimum wage above the federal minimum of $7.25. Let’s examine the effects of raising the minimum wage on the economy and look at a balanced perspective on this complex issue.
On the one hand, supporters of raising the minimum wage argue that it would lead to a more equitable distribution of income and reduce poverty. According to the Economic Policy Institute, increasing the minimum wage to $15 per hour would lift 6.5 million workers out of poverty. Moreover, when low-wage workers receive higher pay, they have more disposable income to spend, which can stimulate the economy and create jobs. This is because when low-wage workers have more money to spend, they can afford to purchase more goods and services, which in turn drives demand and creates new jobs to meet that demand.
On the other hand, opponents of raising the minimum wage argue that it would lead to job loss and inflation. According to the Heritage Foundation (a conservative Christian think tank that lobbies the government), a higher minimum wage would increase labor costs for businesses, which would then raise the prices of goods and services to cover those costs. This, in turn, would result in inflation, which would erode the purchasing power of the minimum wage and cancel out its intended benefits. Furthermore, businesses that are unable to pass on their increased labor costs to consumers would be forced to lay off workers or automate jobs, leading to job loss.
Despite these conflicting arguments, there is a growing body of evidence suggesting that raising the minimum wage has little to no negative impact on employment and may actually improve the economy. For example, a study by the National Bureau of Economic Research found that minimum wage increases in Seattle did not lead to job loss, but instead led to higher pay for low-wage workers and a reduction in poverty. Another study by the Center for Economic and Policy Research found that minimum wage increases in six cities did not result in significant job loss or inflation.
In conclusion, raising the minimum wage is a complex issue with arguments on both sides. While some may argue that a higher minimum wage would result in job loss and inflation, there is also evidence to suggest that it can improve the economy and reduce poverty. Ultimately, the effects of raising the minimum wage will depend on the specific economic conditions of each state and city, as well as the magnitude of the increase. It is important to consider all the factors and gather evidence before making a decision on whether to raise the minimum wage.
James Cole is a 9th grader at DMHS. In his spare time, he enjoys streaming on Twitch.
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