Friday, February 13, 2015

Minimum Wage Increases: The Battle for Inclusive Growth of the Country

The minimum wage is the lowest hourly, daily, or monthly remuneration that employers are bound to play their employers for the work they have rendered. Several states in the country may implement their own minimum wage laws, with rates depending on various factors that affect certain states. Additionally, the federal government implements a nationwide minimum wage to ensure that employees all around the country receive wages that are enough to cover their daily needs.

The Dilemma of Minimum Wage Earners
Sadly, living in North America has been having harder every day. More and more American families have been falling below the poverty line because of the failure to increase the federal minimum wages. These causes more and more people to have problems trying to put food on their tables which causes malnutrition to more and more American children. This also makes it difficult for some pared their children to school. 

Calls to Raise the Federal Minimum Wage
A group of mayors from different states in the country also raise the following points to US President Barack Obama to act on the issue about the federal minimum wage as the current $7.25 minimum wage isn’t enough. According to the group, the federal government should start awarding a $10.50 per hour rate as this would have been the ideal amount of minimum wage should the annual inflation rate is factored in. Moreover, these experts believe that these employees deserve to receive up to $18 per hour if only the minimum wage rate was based on and kept up with worker productivity. That is why the need to raise the federal minimum wage is critical, as this can help these individuals give their families a better life.

Higher Wages, Better Savings for the Government
More than being able to provide a better life for their family the resolution also pointed out various benefits of the local and national government because these higher wages. First and foremost, a higher minimum wage allows for better earning for the public, allowing them to have better purchasing power which can stimulate economic activity. This would also help the government save money as a significant amount in as far as the Supplemental Nutrition Assistance Program federal minimum wage is concerned. These benefits doesn’t just help each American family but the government as well.

This is the reason why calls for the increase in the minimum wage are getting stronger as the benefits clearly outweigh the setbacks caused by such increases. And so these mayors are pushing for the increase of the minimum wage laws including US President Barack Obama himself.

However, there are also a lot of issues that are needed to be resolved when it comes to the issue of minimum wages. For example, there are many firms that commit minimum wage law violations. Some of these companies happen to get away from persecution as some employees fear retaliation for stepping out and fighting such violations. By raising the minimum wages and ensuring that the workforce receives these added wages, nobody gets left behind and inclusive growth can truly be felt.