Boosting the Minimum

The Federal Minimum Wage establishes a minimum pay for all workers to ensure enough money to live off of. However, minimum wage alone still doesn't put a worker above the poverty line. That is where food stamps and the Earned Income Tax Credit (EITC) come into play, pushing people over that line. Nevertheless, the fact that minimum wage on its own isn't accomplishing what it is defined to do outrages some people. People who believe this also support raising minimum wage, believing it will positively affect millions of Americans, particularly single mothers. With people making more money, the economy will benefit as people are more willing to spend. People on this side of the debate also say there should be no more new tax cuts because it will take away from the money that's needed for the government. Those who disagree believe raising minimum wage is counterproductive. It doesn't fight poverty as well as they say because so many of the people receiving minimum wage are teens. Also, if the cost of doing business increases, prices and job cuts will also increase. Opponents also say that supply and demand should determine wages because the economy works best that way. Instead, they say that expanding the EITC would help fight poverty better and it wouldn't interfere with the market.

As a teengaer, it would seem as though I would be for the minimum wage increase; however, after reviewing some facts, I don't believe that boosting minimum wage is the way to fix poverty. That really is what the whole issue comes back to being about getting people who only make minimum wage above the poverty line. But it really does make sense that about half of the people receiving minimum wage are teenagers, most probably still living at home. Sean Hannity, a Republican, also supports this side of the issue, saying "High minimum wage falsely inflates overall wage rates."  The economy can't afford to be increasing minimum wage. The cost on businesses will only create inflation.

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Other issues on Jobs and Welfare:

All Things Being Unequal
Putting Welfare to Work