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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
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