This discussion post aims to analyze the issue with minimum wages in the United States since they have become a subject of many debates in the past few months. During the recent virus outbreak, the increased support from the government has revealed severe flaws in the current policies regarding salaries. Nowadays, wages for some jobs that are common in the country do not allow workers to sustain themselves without governmental support (Ford & Deptula, 2019). This issue severely decreases the quality of life for a significant percentage of the U.S. population.
One of the examples of the apparent lack of necessary policies is the situation with Amazon. Recently, some of its employees were found to be receiving governmental subsidies for people who live below poverty levels, while the firm’s profits in 2017 were over $3 billion (Ford & Deptula, 2019). The company has addressed the situation since then, raising the minimum wage to $15 (Ford & Deptula, 2019). Income inequality harms people’s ability to spend, slowing down the growth of the economy (Ford & Deptula, 2019). In the end, this issue effectively hurts the companies that refuse to pay their workers enough so they can live from their wages alone.
The immediate solution to this issue is an increase in minimum wages on a state level. It is worth noting that some states already have laws that require a gradual increase in salary towards the $15 mark (Ford & Deptula, 2019). While there are some issues concerning tipped workers, such a policy shows promising results in states that are close to the target (Ford & Deptula, 2019). In conclusion, it is vital for the United States to address the issue with minimum wages, as they increase inequality, crime rates and hinder economic mobility for a vast number of U.S. citizens.
References
Ford, L. A., & Deptula, B. J. (2019). The wage gap: No one’s responsibility, but everyone’s problem.Compensation & Benefits Review, 51(3), 112-128.