Raising the Minimum Wage (Term Paper Sample)

Raising the minimum wage
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Raising the minimum wage
The economy of the world today is viewed to be at risk of decreasing drastically because of different issues such as disease pandemic and political instability. Building the economy requires all the stakeholders to consider forgotten factors, including the process of increasing the minimum wage. Minimum wage is explained as the amount of remuneration an employer is obligated to pay as wages for specific work performed during a given time which could not be altered by any agreement made before CITATION Cle21 \l 1033 (Clemens).
“It is time to raise the minimum wage”, this is according to the report of Oxfam on its economic review. According to the U.S government, the primary purpose of increasing the minimum wage is to ensure that workers are protected against low payments, hence advocating equal share to all employers. The minimum wage is an element of fueling the economic growth against poverty and other related issues in society CITATION Mar21 \l 1033 (Mary ). Therefore, the minimum wage must be designed in a way it major reinforces the social as well as the employment policies.
According to Pew Research Center, the idea of raising the minimum wage is broadly advocated by different bodies in the economy as one of the key factors of fighting and reducing the poverty rates in the US. An increase of up to $15 per hour to all workers favored the facts behind the well-known killers of the economy which is racial discrimination CITATION Dre17 \l 1033 (Drew DeSilver). Raising the minimum wage is important because it allows more money to be channeled to the hands of those who are ready to spend thus helping the economy to grow. It also encourages an increase in tax revenues which are collected as income by the federal government.
On the other hand, the minimum wage is becoming a big issue especially for small business ventures who are trying their best to stabilize their economic growth in the market. According to Manning, the minimum wage is an isolated economic element that forces the employment market to be inflexible while responding to other inflation. Fighting poverty requires the maximization of economic knowledge CITATION The21 \l 1033 (Manning). Designing the minimum wage encompasses issues that should be focused upon. Raising the Minimum wage causes price inflation, this is a result of business ventures passing on the higher wages concerning higher prices.
Unemployment is also an issue that is affecting the labor market today. By raising the minimum wage, the demand for contracts increases gradually thus causing unemployment to an extent. Extension of unemployment causes an increase in the poverty rate since only a few people are employed by the business ventures especially those with stable economic stand. Clements, in his research, indicates that many business firms which are advocating the minimum wage could limit opportunities to college graduates as well as those entering into the job market for their first time CITATION Cle21 \l 1033 (Clemens).
Minimum wage is regarded as an essential ele