A recent poll by CNN found that 90% of the Democrats polled, and 54% of the republicans polled, supported increasing the federal minimum wage (CNN data). As it stands right now the federal minimum wage, the lowest acting (technically Wyoming and Georgia have non-active state minimum wages of $5.15) minimum wage a state can have, is $7.25 an hour. Democrats in Congress have proposed raising the federal minimum wage by $10.10, but this has not been popular among Republican congressmen. As a result, voters been individually raising their states' respective minimum wages. By January 1, 2015 29 states, as well as the District of Columbia, will have minimum wages that are higher than the federal minimum wage (Huffington Post). Interestingly, CNN found that 36% of the people polled want the federal minimum wage to be increased to $10.10, while 19% want a smaller increase and 16% want a larger increase. While many Americans support a larger federal minimum wage, there does not seem to be a consensus on how much larger it should be.
1.Do you think the federal minimum wage is too low? If so, around how much higher do you think it should be?
2.What consequences could arise from a federal minimum wage that is too low or too high?
3.Given the results of the recent midterm elections, do you think it will be plausible for the federal minimum wage to be raised by a mostly Republican congress?
5 comments:
Personally, i think the minimum wage should be raised. Yes, raising the minimum wage might put strain on companies (and unemployment could play into this due to the increase in mandatory wages), however, i think it is the government's duty to provide a safety for people trying to make a living. Minimum wage is not enough to support a family, put children through school, put food on the table, etc. With the new Republican-controlled Congress, I don't really think raising the min. wage will pass, however, i think people should keep raising awareness about poverty and lobbying for this raise. We shouldn't raise this minimum so much that lots of people start losing their jobs, but we need to find a balance between rigid business regulations and a total laissez-faire economy.
I agree with Regina. I think that the biggest argument that people have against the minimum wage increase is the stress on small businesses but this should not carry as much weight as it does. There are many solutions to this problem that Congress members have already suggested such as tax and regulatory relief to small businesses that will allow them to raise their wages. Thousands and thousands of people depend on minimum wage jobs to support not only themselves but their families, and that can't be overlooked by the bureaucracy of it all. Poverty is still a very real and very prevalent issue in our country and this is often overlooked by the 1%ers that make up Congress. Minimum wage workers are not just teenagers.
There are obvious benefits and risks for losses from raising minimum wage. On one hand, when you raise minimum wage, more employees will have the ability to spend their money, and that money will be able to circulate more so than now. People depending on social welfare would, theoretically, be able to rely less on tax money. More parents would be able to put their children through a higher education system, which in turn would allow these children to obtain their degrees and pursue their respective careers. The minimum wage increase would also be a logical step to meet with inflation.
On the other hand, there are potential risks to this situation, as well. Goods would be more expensive to produce and services would be more expensive to carry out, and hence, everything with a price tag on it would be noticeably more pricey. Businesses might higher less workers, and they might lay off more employees. Employers need to consider when thinking about an employee: "Is this person productive? Is he/she bringing enough value into the company to compensate for the expenses of training him/her and paying him/her?" If an employee does not bring $10.10 worth of profit to the company per hour, an employer, in his mind, has little reason to keep this person employed. If minimum wage is high, employees need to keep up with the standard of productivity, which would be easier to accomplish if the minimum wage is not as high. It is a tricky situation. Though I am for raising minimum wage, I do think that it should not be raised too much, at least for now. A balance needs to be found with all these factors. As every person is a consumer, and many people are workers, and a few are employers, (or all three), this applies to everybody, in multiple areas, as well.
I am a little bit skeptical that a raise to the minimum wage will be passed through Congress especially with the newly dominated Republican Congress, but I'd like to remain hopeful. If the polls Cameron cites have been properly taken I think this may actually become a prevalent issue, because hey, "it's the economy, stupid." The fact that both parties support an incerase bodes well for a raise because they agree on the core of the issue and now it's just a matter of deciding where exactly the middle ground is to satisfy both parties.
I do agree with the arguments presented above in favor of raising the minimum wage in that while it will impact small businesses I don't think it will hurt them detrimentally because in theory the people who make minimum wage are not the ones that tend to shop at small businesses, as I believe they trend toward being a little more expensive (ie. that small bakery that makes this one type of pastries, the candy shop who makes everything in house, etc).
As of now, I think the federal minimum wage is too low. I don't think that $7.25/hr is enough to support yourself, let alone a family. I agree in raising the federal minimum wage to at least $10. I think it would be better to raise the federal minimum wage because it would give consumers more money to spend and it allows people to support themselves and their families. Even though I support raising the minimum wage, I think it shouldn't be raised too much. If you raise it too much, it will hurt smaller businesses.
Now that the Republicans are the majority in both the House and the Senate, I think there will only be a small chance that Congress will raise the federal minimum wage, seeing as that only 54% of Republicans support raising it.
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