Introduction
There are different opinions regarding the idea of raising the minimum wage to $15 per hour by 2025. Currently, the federal minimum wage is $7.25, and supporters and opponents of the increase mandated by the 2021 Wage Increase Act are divided (Cooper et al., 2022). Supporters believe that the increase is necessary from an economic and humanistic perspective. At the same time, opponents of the idea emphasize the problems in doing business and financial reporting for many enterprises. This paper aims to discuss the pros and cons of raising the federal minimum wage to $15 per hour.
The Pros and Cons of Raising the Federal Minimum Wage
Proponents of the Act say it is dictated by rising living standards and inflation. In particular, the experts note that considering the inflation rates, the minimum wage is now 18% lower than in 2008 and 46% lower than in 1968 (Cooper et al., 2022). Therefore, experts think that the increase in the minimum wage is critical and emphasize it will lift 3.7 million people from poverty (Cooper et al., 2022). This change will primarily affect core and frontline workers, 60% of the total, including the Black, Hispanic, and Native American population (Cooper et al., 2022). One should agree that on-site workers are the driving force of the economy and deserve respect and proper pay for their work.
Notably, opponents of the idea believe that raising the minimum wage will reduce job opportunities. Experts also appeal that many employees will lose their jobs due to the wave of layoffs (“How increasing the federal minimum wage could affect,” 2022). Such an objection is reasonable, given that the Act does not imply a ban on layoffs. The opponents of the idea condemn the way of its implementation to a greater extent than the main message. Before carrying out such a revolutionary innovation, it is necessary to analyze the possible consequences and regulate them legislatively.
Conclusion
Thus, the pros and cons of raising the federal minimum wage to $15 per hour were discussed. The pros include bringing large numbers of people out of poverty and achieving economic justice. Cons are mostly related to the implementation of the new Law, since failure to admit some inevitable consequences can lead to an increase in unemployment due to mass layoffs. Therefore, despite the relevance and fairness of the Law, it needs to be improved, considering the stated shortcomings.
References
Cooper, D., Morkhiber, Z., & Zipperer, B. (2021). Raising the federal minimum wage to $15 by 2025 would lift the pay of 32 million workers. Web.
How increasing the federal minimum wage could affect employment and family income. (2021). Congressional Budget Office. Web.