Scott, R. (2021). Raising the minimum wage: Good for workers, businesses, and the economy. House of Committee on Education and Labor. Web.
The issue of the federal minimum wage has been long debated as it affects the economic status of the U.S. Since 1968, the value of the national minimum wage has been reduced by 24%. Currently, its amount equals $7,25, which is below average, making the population suffer from poverty. The Raise Wage Act aimed to increase it to $12 by 2020, stimulating employment rates, boosting the economy, and eliminating poverty. The business, economy, and workers are supposed to benefit from a federal minimum wage raise.
Businesses support the minimum wage raise, stating that 80% of business executives and 60% of the small ones are encouraging the incentive. In addition, they are raising the hourly wage to employ individuals more eagerly. Their actions signify that the unemployment rate could lower, making the economy flourish again. This would also cause an increase in employees’ productivity since people will be encouraged to work longer hours to be well-paid. What is more, it is expected to reduce the turnover level as the workers may feel motivated to stay longer at their positions due to the possibility of climbing up the career ladder and having a higher salary. Finally, the updated approach will reduce absenteeism, meaning that employees will stop taking leaves.
Raising wages will not ruin the jobs but will provide new opportunities for the candidates. Additionally, it will give further support to the economy by promoting customer spending. This will reboot the demand and supply cycle – the most critical process for a better economic situation. In general, the incentive is supported by a bipartisan movement meaning that both Republicans and Democrats encourage wage increases for better economic functioning.