The document outlines the reasons the federal minimum wage should be raised.
Mainly, it describes how it impacts individuals of color, disadvantaged groups, LGBT, and women disproportionately. More importantly, it provides insights on how lesbian, gay, bisexual, and transgender (LGBT) persons who face a heightened risk of low pay and poverty will manage to live with dignity as a result of the increase (Henderson, 2014).
On the other hand, it examines how the rise advances other civil rights objectives, for instance, in lowering income inequality and augmenting gender pay equity (Henderson, 2014).
Also, discussed are the economic benefits of the minimum wage increment and their role in spurring job growth.
Finally, the document analyzes how the increase can lower expenditure on the Supplemental Nutrition Assistance Program (SNAP) by 4.6 billion dollars, thereby reducing the government welfare expenditure (West " Reich, 2104).
Federal Minimum Wage
Introduction
A raised minimum wage was a primary appeal of the March on Washington in August 1963 for freedom and jobs. More than 50 years later, the federal minimum wage continues to flounder in offering employees a modest standard of living and their full dignity as asked for at the March (Henderson, 2014).
The minimum wage was last increased in 2009 to 7.25 dollars per hour. However, this is inadequate for catering the necessary expenses encountered by working families (Henderson, 2014).
The decision by legislators to maintain the minimum wage low has been a critical aspect, leading to the sudden and troubling increase in salary disparities since the 1970s (Henderson, 2014).
Accordingly, the federal minimum wage should be increased.
Effect on wages
Increasing the minimum wage will boost salaries for a sizable share of employees. First, it will raise the salaries of tens of millions of low-earning employees both directly and indirectly.
Consequently, this will affect the household returns of many individuals with low-earning employees in their families, for instance, the Economic Policy Institute projects that over thirty million low-earning workers will benefit with an increment in the minimum wage (Henderson, 2014).
Consequently, this will provide sufficient funds for the workforce to sustain their families.
Impact on individuals of color, and women
Raising the minimum wage will affect individuals of color, disadvantaged groups, LGBT, and women disproportionately. Since the female gender, African-Americans, LGBT, and Latinos represent low-wage employees, an increase will also benefit these individuals disproportionately.
For instance, 32% of Latino employees and 28% of African-Americans would benefit from it (Henderson, 2014).
Therefore, these groups will manage to afford a decent standard of living with the rising cost of goods and services such as daycare.
On the other hand, women would benefit significantly from the increment as it will enable those who face abuse to move out of their violent homes and re-establish a life afterward. More importantly, the lesbian, gay, bisexual, and transgender who face a profound risk of poverty and low pay will be able to live with dignity since the increase will afford them their basic needs (Henderson, 2014).
Objectives of Civil rights
A rise in the minimum wage will advance additional civil rights objectives. Notably, increasing the minimum wage will lower income inequality and poverty levels, as well as advance gender pay equity.
For instance, a plan to increase the minimum wage to $10.10 in 2016 would have seen 900,000-4.6 million fewer individuals experience poverty (Henderson, 2014).
Moreover, the White house approximated that two million people would leave a poverty way of living (Henderson, 2014).
Therefore, an increase would lower the present neediness levels among individuals, more so child poverty among single-mothers.
Nonetheless, in consideration of the crucial importance of warding off income disparities to both earlier and new civil rights groups, it is notable that minimum wage increments lower income disparity, while breaching the gender wage rift, particularly for women of color.
For instance, A council of Economic Advisers studies established that raising the minimum wage to just over 10 dollars would reduce the gender wage disparity by 5% (Henderson, 2014).
Effect on economic activity
Increasing the minimum wage will advance economic liveliness and induce job rise. Precisely, The Economic Policy Institute declared that a minimum wage increment from the present rate of 7.25 dollars to 10.10 dollars would add 22.1 billion dollars net into the economy and create close to 85,000 contemporary employment opportunities over a 3-year cycle (Cooper, 2013).
Furthermore, Federal Reserve Bank of Chicago economists projected that a 1.75 increment on the minimum income would raise domestic expenditure by forty-eight billion dollars, thereby; enhance gross domestic product and job growth (Cooper, 2013).
In this regard, increasing the minimum wage will provide new employment opportunities for the unemployed citizenry and encourage setting up of new businesses and expansion of the current ones due to the improved purchasing power of the low-income workers.
Welfare expenditure
A raised minimum wage will lower the federal government welfare expenditure. If low-income employees earn more money, their reliance, and eligibility for State benefits will reduce.
For instance, a 2014 report by The Center for American Progress indicated that increasing the federal minimum wage to 10.10 dollars would cut down expenditure on the Supplemental Nutrition Assistance Program (SNAP) by 4.6 billion dollars (West " Reich, 2104).
On the other hand, The Economic Policy Institute resolved that by raising the minimum wage by 6%, over 1.7 million Americans would no longer rely on the State aid programs (Cooper, 2013).
Therefore, the federal minimum wage should be increased to cut government spending on welfare and direct resources in providing other basic needs such as improving healthcare.
Inflation
The federal minimum wage should be raised because the $7.25 rate an hour has not kept up with inflation. Firstly, given that the federal minimum wage is not cataloged for inflation, its purchasing ability has declined remarkably since its spike in 1968.
The minimum wage was $1.60 in 1968, which was equal to $11.16 in 2016 and higher than the current $7.25 by 53.29 percent (EBSCO, 2017).
Therefore, raising the minimum wage with the current inflation will ensure that the low-income workers can cope up with the rising cost of goods and utilities such as daycare. As such, they can adopt a standard of living that commensurate with today's economy.
Productivity
The increase in the minimum wage will boost workers' productivity as it will motivate employees to avoid being absent from their duties and reduce employee turnover rates (EBSCO, 2017).
Therefore, this will benefit small business owners by enhancing customer satisfaction, increasing return on investment (ROI), and lowering workers' turnover.
Moreover, institutions will benefit from quality input from their workforce since a modest minimum wage gives them a sense of satisfaction.
Conclusion
Increasing the federal minimum wage is crucial because of the benefits that will be accrued. First, this strategy will boost wages for a sizable share of employees.
Also, it will advance new civil rights objectives by lowering income inequality and poverty levels. At the same time, the move will promote gender pay equity.
Furthermore, an increment will enable women who face abuse to move out of their violent homes and re-establish a life afterward to sustain themselves.
Importantly, it will improve economic activity and induce job growth by injecting more money into the economy.
Most importantly, it will boost a worker's productivity by making jobs more alluring, and reduce absenteeism.
References
Cooper, D. (2013). The Economic Policy Institute. Raising the Federal Minimum Wage to $10.10 Would Lift Wages for Millions and Provide a Modest Economic Boost, 1-8.
EBSCO. (2017). EBSCO. Minimum Wage , 1-12.
Henderson, W. (2014). Leadership Education Conference Fund . Improving Wages, Improving Lives: Why raising the minimum wage is a civil and human rights issue, 1-36.
West, R., " Reich, M. (2104). Center for American Progress. The Effects of Minimum Wages on SNAP Enrollments and Expenditures, 1-9.
