Rising Opinions around Minimum Wage

Supporters:

Since the establishment of minimum wage in 1938, opinions on minimum wage changes have changed many times. Nowadays, most people advocate for an increase in the federal minimum wage to $15.00 an hour, however, there are a few obstacles in the way. The supporters of an increase argue that increasing minimum wage can stimulate consumer spending and boost the overall economy by putting more money in the hands of low-wage workers. Furthermore, they advocate that an increase in minimum wage would serve as a crucial step towards promoting economic justice and racial equality. Minority groups are often overrepresented in low-wage jobs and are more likely to earn less than white or privileged groups. So not only would it allow minimum wage workers to afford basic utilities, it would also help narrow these wage gaps by providing higher earnings to all workers, regardless of gender or race. Surprisingly, small buisnesses are starting to support an increase to minimum wage wven though they would be heavily effected. This is shown by the following graph:

Dissenters:

On the other hand, people against an increase in minimum wage are typically business owners because an increase would raise labor costs for employers. People against also suggest that increasing the minimum wage could contribute to inflationary pressures by raising the overall cost of goods and services. A major concern for dissenters is that raising the minimum wage could lead to job losses, particularly in industries that operate on thin profit margins or employ a large number of low-wage workers. In regard to small businesses, they worry that increasing the minimum wage would directly raise labor costs for them, especially if they struggle to absorb the additional expenses. This increase would cause higher labor costs which relates to the concern of a disincentive to hire new workers. However, many small businesses support a minimum wage increase. Overall, the main concerns of dissenters center around potential business issues that would affect income and raising costs.

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