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Ideally, the President also recommended the same for the entire nation. He urged other states to take the example of Connecticut, which had succeeded in increasing its…
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Effects of Raising the National Minimum Wage Many individuals have thought that it was a great move to that the minimum wage is increased to $10.10 an hour. Ideally, the President also recommended the same for the entire nation. He urged other states to take the example of Connecticut, which had succeeded in increasing its minimum wage rate. However, many people have rejected the move and said that this initiative is one of the moves that will affect the competitiveness of the states. The president however said that this increment would enable the Americans who work hard to ensure that they get ahead of their challenges. From the current federal minimum wage rate of $7.25 an hour, various states have proposed different figures in order to raise the wage rate to a favorable amount (Shemkus 2).
One of the bigger challenges in increasing the minimum wage rates is increasing the costs for the employers. Although the initiative ensures that the employees get reasonable payment for their services, it forces the employers to incur huge costs (Jacoby 3). Federal labor statistics reported that about 70% of the minimum wage rate employees work for less than 35 hours a week. This makes their earning to be less thus the increment will give such individuals the opportunities of living decent lives. Left-leaning Economic Policy Institute concluded that, “by increasing workers’ take-home pay, families gain both financial security and increased abilities to purchase goods and services, thus creating jobs for other Americans.”
Nevertheless, the business-backed nonprofit Employment Policies Institute remarked that increasing the minimum wage rate does not lower poverty. Studies indicate that there is no relationship between high wage rates and the reduction of poverty therefore; this initiative might not be used as a way of reducing the poverty rates in various states. According to Shemkus (2-3), further studies have also found the relationship between unemployment and increasing the minimum wage rate. Opponents of increasing the minimum wage rate reiterate that by increasing the minimum wage rates, the employers would be overburdened that they may not hire more workers. This will make it more badly when many people will be unable to be employed.
On the other hand, the rise in wage rate is seen as a special move that will enhance the consumer patterns of purchasing. Nonetheless, the consumer goods and services will increase in correspondence to increased minimum wage rates. Studies have indicated that by improving the minimum wage rates, individuals will live improved lives, as they will be able to access a number of products and services. Idyllically, supporters of the motion to increase the minimum wage rate said that this policy stems the increases in income inequality in the U.S. while the opponents said that it was a blunt way of addressing the income inequality in the U.S. The main goal of increasing the minimum wage rate is to reduce the poverty levels by improving the standards of living and wellbeing of employees (Holtz-Eakin 2). This move will then be cost-effective as more people will invest in education as funding for food stamps and earned income tax credit (EITC) will be achieved (Rex 1-4).
According to Conservative, businesspersons and politicians have noted that the proposal of increasing the minimum wage rate is not going to have a serious effect on the businesses. They noted that businesses are able to work out the challenges of increasing wage rates by increasing the costs of their products as well as by reducing the payments of the highly paid employees. Some proponents say that since American economy is made up of 70% consumer spending, the increment of minimum wage rate would help the economy; however, opponents report that the money used for increasing the wage rates are cyclically coming from the wallets of same Americans; thus, the proposal would be expensive for all Americans (Bernstein 2-4).

Works Cited
Douglas, Holtz-Eakin, “Would Raising the Minimum Wage help the Economy (con)”, CQ-Researcher 2014: 1-2
Jared, Bernstein, “Would Raising the Minimum Wage help the Economy (pro)”, CQ Researcher. 2014: 2-4
Jeff, Jacoby. Minimum Wage Laws are Costly for the Unemployed. Boston Globe, 2012: 1-3
Rex Hupke, In Minimum Wage Debate, Both Sides Make Valid Points, Chicago Tribune, 2014: 1-4.
Shemkus, Sarah. “Increasing the Minimum Wage: PPros & Cons” Salary.com. 2013: 2-8 Read More
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