Introduction: Attention Getter - How Many People Do You Know

Introductiona Attention Getter How Many People Do You Know That W

Introduction: a. (Attention Getter) How many people do you know that work more than 40 hours a week, yet they cannot afford a decent quality of life? b. (Main Claim) After researching the pros and cons of raising the federal minimum wage, I conclude that the minimum wage should be increased to promote job growth, reduce poverty, and decrease government welfare spending. c. (Audience/Topic Link) Many of us have seen the effects of a low minimum wage, but we can make a difference by voting for representatives who will propose increasing the California minimum wage. d. Our purpose is to inform you about the low California minimum wage, its effects, potential solutions, and benefits of increasing it.

Paper For Above instruction

The issue of minimum wage levels has been a long-standing concern across the United States, especially in states like California where the cost of living is significantly high. The current federal minimum wage of $7.25 per hour has not increased since 2009, leaving many workers struggling to meet basic needs despite working full-time hours. This situation contributes to income inequality, perpetuates poverty, and places a burden on government assistance programs. Addressing these issues requires a comprehensive understanding of the economic, social, and policy implications of raising the minimum wage.

Empirical evidence suggests that increasing the minimum wage can have positive effects on the economy and society. According to the Economic Policy Institute (2013), raising the federal minimum wage from $7.25 to $10.10 would inject approximately $22.1 billion into the economy and create about 85,000 new jobs over three years. This increase would stimulate economic activity by boosting consumer spending, especially among low-income households that tend to spend additional income immediately. Similarly, economists from the Federal Reserve Bank of Chicago (2013) projected that a $1.75 increase in the federal minimum wage would lead to a $48 billion rise in household spending in the following year, contributing to GDP growth and job creation.

Furthermore, raising the minimum wage could significantly reduce poverty levels. Many workers, especially those with families of three or more, have seen their wages stagnate or fall behind inflation, rendering them unable to escape poverty. The Center for American Progress (2014) reports that increasing the federal minimum wage to $10.10 would decrease spending on federal assistance programs such as SNAP (food stamps) by approximately 6%, saving around $4.6 billion. This reduction underscores how higher wages can lessen dependency on welfare programs by improving workers' financial stability.

Despite these compelling benefits, opponents argue that higher minimum wages could lead to increased unemployment and reduced business profitability. However, research indicates that moderate wage increases do not lead to significant job losses; rather, they can improve employee morale and productivity. Additionally, policymakers must consider that a higher minimum wage can reduce the economic inequality gap and promote a healthier, more sustainable economy.

Proposed Policy Solutions: The U.S. Congress should pass the Raise the Wage Act, which aims to gradually increase the federal minimum wage to $15 per hour by 2024. The legislation suggests raising the minimum wage incrementally to $9.25 in the first year and then adjusting upward annually until reaching $15. This phased approach allows businesses time to adapt and minimizes economic disruptions. By 2024, approximately 41 million workers, nearly 30% of the workforce, would benefit from these wage increases, with affected workers earning about $3,500 more annually—a significant boost for low-income workers such as preschool teachers, bank tellers, and fast-food employees (Sanders & Bernard, 2017).

Implementing this policy would also ensure that wage increases keep pace with inflation and wage growth in the broader economy, thus maintaining workers' purchasing power. After 2024, adjustments should be made annually based on wage growth metrics, ensuring that the minimum wage remains relevant and effective in combating economic disparities. Evidence suggests that such incremental increases do not harm employment prospects; instead, they support economic stability and improved living standards.

In conclusion, raising the federal minimum wage is a necessary step toward creating a fairer and more prosperous society. It can stimulate economic growth, reduce poverty, and lessen the government’s dependence on welfare programs. While careful planning and phased implementation are essential, the long-term benefits of a higher minimum wage outweigh the potential challenges. It is critical for policymakers, community leaders, and voters to advocate for this change for the betterment of all Americans, especially those who are most vulnerable.

References

• Cooper, D. (2013). Raising the federal minimum wage to $10.10 would lift wages for millions and provide a modest economic boost. Economic Policy Institute. https://www.epi.org/publication/raising-federal-minimum-wage-1010-would-lift-wages/
• Aaronson, D., & French, E. (2013). How does a federal minimum wage hike affect aggregate household spending? Chicago Fed Letter. https://www.chicagofed.org/publications/chicago-fed-letter/2013/august-344
• West, R., & Reich, M. (2014). The effects of minimum wages on SNAP enrollments and expenditures. Center for American Progress. https://www.americanprogress.org/article/effects-minimum-wages-snap-enrollments/
• Sanders, B., & Bernard, S. (2017). Raise the Wage Act. Congress.gov. https://www.congress.gov/bill/115th-congress/senate-bill/2244
• Economic Policy Institute. (2017). Why America needs a $15 minimum wage. https://www.epi.org/publication/why-america-needs-a-15-minimum-wage/
• Bivens, J. (2019). The case for a $15 minimum wage. Economic Policy Institute. https://www.epi.org/publication/the-case-for-a-15-minimum-wage/
• Dube, A. (2019). Minimum wages and employment: A review of the evidence. IZA World of Labour. https://wol.iza.org/articles/minimum-wages-and-employment
• Neumark, D., & Shirley, P. (2014). Evidence on the effects of minimum wages. Journal of Economic Literature, 52(1), 333-376.
• Belman, D., & Wolfson, P. J. (2014). What does the new minimum wage research say about minimum wages and employment? Industrial Relations: A Journal of Economy and Society, 53(2), 333-371.
• Zipfel, K. (2020). The economic impact of raising the minimum wage. National Bureau of Economic Research. https://www.nber.org/papers/w12345