Introduction
There are several benefits of the US increasing the minimum wage for workers. Firstly, raising the minimum wage means getting money into people’s pockets. This helps increase consumer demand for products and services (White, 2020).
Secondly, a high minimum wage will increase employee satisfaction, which is suitable for businesses. It reduces the level of stress that employees may experience because they will be able to pay most of their bills effectively. Thirdly, increasing the minimum wage lowers personal and household poverty (Jayachandran, 2020).
The Reasons for Increasing Minimum Wage
There are several reasons to raise the minimum wage in the US. Firstly, a higher minimum wage than the existing one is likely to increase workers’ productivity (Barr, 2020). Cities in the US, such as San Francisco, have witnessed increased performance by raising the minimum wage. The city increased its minimum wage to $12.25 % before tips and realized positive job growth in the hospitality industry.
Secondly, a study conducted by The Washington Post found that approximately 80% of business executives supported the idea of increasing the minimum wage. Therefore, increasing the minimum wage will yield numerous benefits for both individuals and organizations.
The Arguments Against Increasing the Minimum Wage
Those opposed to raising the minimum wage have varying reasons. Firstly, they argue that increasing the minimum wage is more likely to increase the cost of managing businesses (Wang, 2022). It means that employers will be required to raise the cost of labor.
Secondly, there are claims that a high minimum wage will raise the unemployment rate in the US. With a requirement to pay employees more, businesses are less likely to employ more employees. Thirdly, those who oppose the suggestion to increase the minimum wage argue that small organizations may be unable to afford to pay their employees.
Conclusion
Despite the challenges, the US will reap additional benefits when it raises the minimum wage. Most business leaders understand the advantages they will achieve once the minimum pay increases. For example, a satisfied and stress-free employee benefits an organization and the economy’s growth because they are more likely to be productive. There are real-world cases, such as San Francisco, that have raised their minimum wage and managed to increase business performance. Therefore, the US is likely to achieve significant benefits, such as economic growth, when the minimum pay increases because it will increase product demand.
References
Barr, N. (2020). Economics of the welfare state. Oxford University Press.
Jayachandran, S. (2020). How a raise for workers can be a win for everybody. The New York Times. Web.
Leins, C. (2018). Minimum wage increases didn’t impact jobs in 6 US Cities. USNEWS. Web.
Wang, Z. (2022). Analyzing the socio-economic impacts of the US Federal minimum wage. Modern Economy, 13(10), 1397-1408. Web.
White, M. C. (2020). Increasing the minimum wage would help, not hurt, the economy. NBC News. Web.