Federal Minimum Wage Discussion – Admission/Application Essay Example
Federal Minimum Wage In February the U.S government faced opposition because it planned to raise the minimum wage. The opposition is based on the fears that a higher wage will make the labor sector uncompetitive. Opponents of the government’s increase of the minimum wage argue that raising the minimum wage will reduce the competitiveness of the U.S economy. Legislators are reluctant to support the government’s increase of the minimum wage because unemployment is still high at 9 percent (Neumark and William 27). In my opinion, the government plays a crucial role in passing legislations that increase the minimum wage.
The government performs a fundamental economic and social role by raising the minimum wage. The process stimulates the economy by boosting consumer spending that supports 70 percent of economic activities. Increased consumer spending jumpstarts production and re-hiring. Raising the minimum wage boosts disposable income that will be spent on local businesses. By raising the minimum wage to $10.10 dollars, the government is likely to generate $22 billion through new economic activities (Neumark and William 35). A high minimum wage has the potential of building sustainable economic activities and societies without the need to increase costs for taxpayers.
In my opinion, raising the minimum wage is vital for sustainable economic activities. It will ensure that workers have a disposable income and reduce the burden of workers as they try to meet their life demands. It will also mean that they have the resources for investments. To business owners, raising the minimum wage has the potential to increase revenues because of increased consumer spending. A high minimum wage will stimulate production and supply because people will have the purchasing power.
Neumark, David, and William L. Wascher. Minimum Wages. Cambridge, Mass: MIT Press, 2008. Print.