Debate Over President Obama's Orders to Raise the Minimum Wage

Source summary: In a speech of Union of the Union of Minimum Wage 2014, President Obama announced its intention to sign a presidential decree to raise federal contractor's minimum wage to $ 10.10 per hour. This movement reflects the increase in minimum wages implemented in many states earlier this year, as well as similar measures taken into account by other states and federal governments. Many activists welcomed the news, but in the New York Times article on February 5, we investigated the possible negative impacts of the increase in minimum wage earners to small and medium enterprises. I conflict.

For a while, the national debate focused on raising the federal minimum wage. The current minimum wage is $ 7.25. President Obama insists on gradually raising the minimum wage up to about $ 10 hourly wage. Recently, the Congressional Budget Bureau reported that there are several advantages to both discussion, due to the benefits and disadvantages of raising the minimum wage. The Congressional Budget Bureau says that the main benefit of raising the minimum wage is to raise the wage up to approximately $ 10.10 per hour of hourly wage and that it can release as much as 900,000 people from poverty. These figures come from the poverty rate of the current low wage workers in particular. By raising the minimum wage near 3 dollars per hour, these workers can better support themselves and their families.

President Obama will raise the minimum wage as the core part of his campaign against "income disparity". In his recent state speech, he urged the Federal minimum wage to rise to 10.10 dollars per hour over the next three years. He also announced plans to unilaterally raise federal contractor's minimum wage. At the same time, many state governors are working hard to raise the minimum standard of the state. There is no doubt that these proposals are politically very popular. However, most evidence suggests that raising the minimum wage has little effect on reducing poverty and inequality. On the other hand, employment opportunities will almost certainly be reduced for beginner-level skilled workers, especially those whose jobs correspond to the first stage of the ladder of opportunity.

Minimum wages will affect everyone. The current minimum wage is $ 7.25, and President Obama announced that he wanted to see a change in minimum wage, and he wishes to raise hourly wages to $ 10.10. An increase in employer income may also increase employment costs for unskilled workers and reduce the number of people employed by that company. In addition, if the minimum wage is raised, the price of the product the company manufactures may rise, which will continue to circulate.