Top Ten Reasons to Raise the Minimum Wage

Alpha101
Over the past decade, many economists, politicians, and political activists have called for an increase in the federal minimum wage. President Obama called to raise it to $10.10 an hour. Secretary of State, and presedential candidate Hillary Clinton proposed to raise it to $12 an hour. Senator and presedential candidate Bernie Sanders proposed an even larger increase to $15. There are many reasons why people wish to raise the minimum wage, and here are ten of those reasons.

The Top Ten

1 It Would Reduce The Amount Of People On Welfare

Economists have stated that if the minimum wage was raised to $10.10 an hour, there would be seven to nine percent less people on food stamps. Currently, lots of workers who warn minimum wage use food stamps in order to help make ends meet. If the minimum wage was raised, there would be no need to use food stamps. - Alpha101

In Minnesota, the large employer minimum wage is $9.50, for a small employee, it's $7.75. that's due to change as of 2018, but not drastically. Obviously there is much more motivation for the small business employee to receive welfare, and I actually emphasize. But I know many people that start out at either minimum wage, work hard and make something of their lives. In reality, it is the people taking advantage of the welfare system illegally that make the system weak and a terrible burden on honest workers. The system is in place to help the needy and infirm, and even those that have fallen on hard times, but far to often it is given to those that have no intention of being a positive member of society. - Ned964

Alpha, you are the best political list maker on TTT - EliHbk

2 It Would Increase The Incentive To Work

Right now, many people who are on welfare can work, but they choose not to. Why is this? It's because they can receive more in welfare benefits than they would if they worked for $7.25 an hour. An economist stated that the average amount of welfare benefits collected on Mississippi equaled around 17k, while the average amount in Hawaii is 49k, thanks to higher prices. The federal minimum wage currently equals around 15k. Why on Earth would someone work if they could make more if they just stayed home. If we raised the minimum wage to equal more than the average welfare payout, then more people who are on welfare will want to work, since they will be able to earn more. - Alpha101

Obviously, but people would rather do nothing for less than something for more anyways, but yeah. - EliHbk

3 It Would Stimulate The Economy

One study shows that if the minimum wage was raised to just $9 an hour, consumer spending would increase by almost $50 billion a year, which would be a huge stimulus to our sluggish economy. - Alpha101

No doubt. You give the lowest paid people more money, and they will spend more. But what if the number of lowest paid people decreased, but they have more money to spend? The economy still receives a positive jolt, just not as profound. Any uptick in the economy is lauded. - Ned964

4 The Value Of The Minimum Wage Fallen

It's an age old axiom my friend, the poor are always getting screwed by the rich... or better yet, he who has the gold, makes the rules. - Ned964

Since the minimum wage was increased in 2009, the price of common food items has increased by an average of 32%. The minimum wage has stayed the same. Actually, it's decreased, thanks to inflation. If food prices continues to rise, and the minimum wage continues to fall, disaster will strike the poor and lower-middle class. In the 1960s, the minimum wage was around half of the average wage. This means that if the minimum wage was adjusted for inflation, it would be around $12.50 an hour today. - Alpha101

5 Worker Productivity Has Risen Faster Than Wages

Worker productivity increases every year, but low-skilled workers are getting paid less and less every year. In a healthy capitalist economy, the more productive you are, the more you should get paid. Sadly, that's not the case. If the minimum wage was tied to productivity, it would be around $22 an hour today. - Alpha101

This is true, and in many cases, productivity is gained by sacrificing quality. Smaller workforces are asked to do more work during the day, stretching a companies best workers thinner and thinner. This leads directly to a natural dip in quality, the trick is to meet minimal quality standards while maximizing production. It's a dance that has become a financial reality for many, and it causes a lot of stress doing this day in and day out. Again, if a company decides to carry less workers because paying a higher minimum wage is mandated, nothing is actually gained. - Ned964

6 It Would Raise Wages For Other Workers

Hey Alpha101, what's up?...Another interesting list. Raising wages across the board is never a good idea. Take the domestic manufacturing industry for example: On average, wages are the 2nd biggest source of red ink associated with manufacturing, so to raise this expenditure puts pressure on companies to meet their bottom line, and then something else (usually employee related) must suffer. In modern capitalism, it's never wise to ask a company to take a guaranteed hit when there are so many variables that can't be predicted accurately that wallop a firm's bottom line. A company will normally cautiously reward good employees during boom times, because it's tough to take wages back during bad times. - Ned964

Several studies have stated that whenever the minimum wage is increased, people making around 150% of the minimum wage also see a small pay raise, because of the ripple effect that raising the minimum wage would have on the economy. - Alpha101

7 It Would Reduce Employee Turnover

A 2014 survey found that more than half of small businesses would support raising the minimum wage, because it would make employees more productive and happy with their job, which would reduce employee turnover. - Alpha101

There's no doubt that paying employees more creates a happier work environment, but this far too often becomes a secondary concern when that bottom line is affected. There is budget associated with wages, so do you hire more less competent workers or less skilled workers to achieve the quota? I can assure you that often times it is going to be the latter of those 2 choices because it solves the problem of underpaying employees. But that reduces the workforce. - Ned964

8 It Would Reduce Crime

A study has shown that if the minimum wage was increased to $12 an hour by 2020, crime would decrease from 3% to 5%. - Alpha101

9 It Would Reduce The Deficit

With less spending being needed for welfare, the government can reduce our already bloated budget deficit. - Alpha101

10 It Would Decrease Poverty

This is according to pretty much every study - Y2K

The Contenders

11 It Is Popular

Around 73% of Americans support raising the minimum wage. What's even more astounding is that 53% of all Republicans support it, meaning that everyone is becoming more supportive of the idea, including conservatives. If we truly live on a democracy, if a policy had the majority of Americans' support, then we should do it. - Alpha101

That would be astounding if 53% of conservatives supported it. That would signal a marked change in the current political climate, and I would not only welcome it, I would have some optimism for the future. - Ned964

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Top Remixes

1. It Would Reduce The Amount Of People On Welfare
2. It Would Increase The Incentive To Work
3. It Would Stimulate The Economy
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