Does the Minimum Wage Increase the Standard of Living for Low-Income People?

America has maintained the minimum wage rate that has been enacted since 1938. At the moment there are many political arguments about raising the minimum wage to federal level and government level at state and local level. There are many theories about minimum wage. Some even think that it causes funds to flow into the economy more quickly, which will adversely affect employment and further increase the unemployment rate. Others point out the economic theory of supply and demand, claiming to increase unemployment.

At best, the economic survey is only the effectiveness of the growth of minimum wages, while improving the standard of living for low-skilled workers. Several studies show that raising the minimum wage actually reduces the employment opportunities for low skill workers. By raising the minimum wage, those who most need these minimum wages may suffer the most. However, Democratic leaders are not responsible for their weakness in their policy recommendations. Of course, Fox News and Republicans will be responsible to them, but as today's party voters are well trained to avoid contradictory information, they never hear a considerable counterargument to raise the minimum wage I can not do. In 1968 Walter Cronkite there was a possibility that average voters could inadvertently contact information that might adversely affect the perceptions of voters around the world, but today there is not.

There is much debate about nationwide minimum wage growth. Currently, wages are set as low as 7.25 per hour. In today's society it is almost impossible for people living with their families to live on an hourly basis at $ 7.25. In President Obama 's state speech in 2013, the President suggested raising the minimum wage to 9 dollars by 2015 (Luhby). Increasing the minimum wage will increase economic stability, will help people living in poverty and increase opportunities for those who are trying to get out of the living environment of the poor. Another advantage of raising the minimum wage is that it may help boost the economy from recession. For example, if people have more money, they are more likely to spend more money, thereby increasing the income of the whole country.

Politicians may argue that raising the minimum wage will benefit the people of the low-income bracket. However, the direct effect of raising the minimum wage is to increase the income of employees with the minimum wage per hour, which means that in the sense that low-income families make the most of these policies There is none. This can be seen in Figure 9 and shows the percentage of household net income growth in conservative proposals and labor proposals received on each tenth of the income. It is very important to understand that this is just a direct focus on mechanical benefits. As we emphasized earlier, in fact the money used to pay higher pay is somewhere affecting the employment of door sounds. Neither is included in the analysis in Figure 9.