The Minimum Wage Issue in the US - Essay Example

POLICY PAPER: MINIMUM WAGE ISSUE Kirsten Gillibrand Senator, U.S. Congress 202-224-4451 Washington, D. C. invite@gillibrand.senate.gov Dear Madam, RE: THE MINIMUM WAGE ISSUE My name is Yongkyu and I am college student at Baruch College in NYC. The purpose of writing this letter is to address the issue of minimum wage. The level of minimum wage in this country affects many people, especially college students who rely on minimum wage while working at places such as fast food restaurants. The minimum wage has been at a constant level of $7.25 an hour for a long time, which necessitates a need for review. It is noteworthy that employees who earn the minimum wage are usually teenagers and young adults trying to kick-start their careers. Employees who start working on jobs that offer minimum wage sometimes use it at a platform to attain other professions. Additionally, minimum wage not only helps young people, but also senior citizens who use it to support their families. I am addressing this letter to you to urge you as the senator of New York to introduce a motion in Congress calling for a raise in the minimum wage across all states. The United States requires policies that safeguard hardworking Americans who are dedicated in earning a living.1 Therefore, I believe raising the minimum wage above $10 per hour would be an important policy change towards restoring hope in citizens who rely on this income. Given this brief account, I believe that raising the minimum wage is a bold step that the Congress may take for purposes of achieving economic development. Raising minimum wage is a bold step towards economic recovery in the country. I call for the federal government to increase its spending on regular people as a means of increasing economic output in terms of revenue. Normally, regular people exhibit fluidity in their spending; hence, more money remains in circulation. On the contrary, wealthy people tend to hoard their wealth; hence, preventing it from circulating back into the economy. The minimum wage issue presents a transformation to the economy, which has been hijacked by the elite in recent years; thus, making it less productive in terms of government revenue collected through taxes. I would urge the government to increase the minimum wage of American workers to boost their purchasing power, as this will facilitate economic recovery.2 Therefore, a change in policy in increasing the minimum wage prevents counterproductive economics, which boosts the economy. 3 Second, raising the minimum wage can alleviate poverty. It is evident that these days the focus of the US economy is on Wall Street, which accounts for less than 1% of the population. In recent years, the number of people working in productive lines of employment has declined leading to the notion that productivity is lagging behind. Nowadays, the financial sectors are top in terms of income generation; hence, having zero output in productivity.4 Therefore, I am urging you in your capacity as a Senator to consider the minimum wage issue since a slight increase would significantly improve the livelihood of poor Americans. Employees on a minimum wage often have huge debts such as college loans, which they struggle to pay owing to their insufficient pay.5 Elevated corporate profits create a misconception of the economic status because these businesses only benefit few individuals in the society.6 The actual figures indicate that minimum wage workers earn $14,500 annually, but in case of the proposed increment to over $10, they would be able to survive during these financial times. Consequently, over a million people living in the United States would rise above the poverty zone. Given this huge implication, it is my humble request that you may consider this minimum wage proposal as a means of alleviating poverty in the country.7 Third, raising the minimum wage is a step towards protecting the workers and providing justice. Normally, minimum wage workers are exploited at their workplaces by working long shifts yet they receive meagre payment.8 For instance, workers at fast food stores usually work many undocumented hours, which is another means of exploitation that the employers use. This is evident whereby these fast food workers pick up additional shifts during odd hours. In recent decades, the country has witnessed a drastic shift in national income towards the rich who benefit from high profits, low taxes, and expansion. Consequently, the American economy has gone through unprecedented dip in economic performance since the labor forced is not used to its fullest. Raising the minimum wage is a simple but crucial step that the government can undertake in these hard economic times. The working population has experienced the negative effects of the economic crisis since working Americans find it difficult to manage their debts and establish a comfortable living. As an act of justice, raising the minimum wage level would at least minimize income inequality that is rampant in the country. Corporate workers usually earn huge salaries compared to minimum wage workers yet they contribute less to the economy in term of taxes.9 Therefore, given the reasons, I believe my point is clear when I urge you as the Senator of New York to consider this proposal of raising the minimum wage level. 10 A change in policies is required in raising the minimum wage. Given that you are a member of Congress, the addressing of this letter is appropriate since you are in a position to present the bill on the floor of the house. Just recently, we saw the Republicans block this bill from going through mainly due to political reasons. However, I would urge you to convince some of the opponents that this national matter requires Congress’s intervention for the good of the American citizens. Members of Congress should take citizen’s issues at heart and debate this bill for purposes of coming up with an amicable solution. The Senate and House of Representative should come together in bringing change and save the American workers who put in extended hours for purposes of making a meaningful living.11 I would like to congratulate you as a member of Congress for advocating the Fair Minimum Wage Act of 2012, which led to an increase in minimum wage to $9.80. However, more policies require implementation since inflation is a serious matter in this country, which currently stands at 1.51%. An increase in the wage base would improve the satisfaction of most minimum wage employees. 12 Raising the minimum wage through a bill presented to the House of Congress is an effective way of tackling the issue. The Fair Minimum Wage Act of 2012 is a perfect example of how the Senate and House of Representatives can change the minimum wage. The main goal of the bill was to raise the minimum wage level to $9.8 by 2014. Normally, such bills are presented by a Senator, in charge of the house, to debate on the matter. During the debate process, members of Congress would have an opportunity to listen to the plight of citizens who operate on a minimum wage basis. An increase in the minimum wage level would enable these employees to keep up with the rising cost of living. Given that the country experienced an economic decline in recent years, such a move will be viewed as an economic reform, which aims to improve the living standards of employees working long hours. Additionally, the issue enjoys immense public support with approximately 73% of the U.S citizens in favor of the matter. Given these reasons, it is evident that raising the level of minimum wage is the first step towards economic recovery. In conclusion, I believe raising the level of the minimum wage is a crucial step to take since it is a means of safeguarding the interests of citizens. The minimum wage has been constant for many years, which is not in line with the rising cost of living. Nowadays, most Americans are struggling with the low levels of income, especially in maintaining a decent living.13 An improved minimum wage is a precursor for economic recovery in the country since it targets regular people who contribute directly to the economy. People on this form of employment increase the circulation of money through the economy since it mandatory for them to spend on a daily basis. Another reason for raising the minimum wage is to prevent case of poverty in country. It is important for the government to find a solution to the economic inequality, which threatens economic development. An increase in minimum wage would also protect the rights of employees who put in long hours. In view of the cogent reasons I have raised, appropriate measures are required to raise the minimum wage. I would like to thank you for reading and considering my opinions, and I hope the proposal would be realized soon. Sincerely, Yongkyu Choi Email Address Bibliography Bauerlein, Monika, and Clara Jeffery. All Work and No Pay: The Great Speedup. 2011. http://www.motherjones.com/politics/2011/06/speed-up-american-workers-long-hours (accessed May 08, 2015). Davis, Alyssa, and Lawrence Mishel. CEO Pay Continues to Rise as Typical Workers Are Paid Less. 2014. http://www.epi.org/publication/ceo-pay-continues-to-rise/ (accessed May 08, 2015). Devinatz, Victor G. "The Significance of the Living Wage for US Workers in the Early Twenty-First Century." Employee Responsibilities and Rights Journal 25, no. 2 (06, 2013): 125-134. Sabia, Joseph J. and Richard V. Burkhauser. "Minimum Wages and Poverty: Will a $9.50 Federal Minimum Wage really help the Working Poor?" Southern Economic Journal 76, no. 3 (2010): 592-623. Schuldt, Robert, Davis Woodall, and Walter E. Block. "Drowning the Poor in Excessive Wages: The Problems of the Minimum Wage Law." Humanomics 28, no. 4 (2012): 258-269. Read More