by FALPC Intern Katie Irwin
Why do we need to raise the minimum wage? This question has been a hot topic for the last several months and the supportive reasons outweigh the negative ones. Campaigns like Raise Up Massachusetts are working to raise the state wage to $10.50. They show that an increase “would directly raise the wages of all workers who earn less than the new minimum wage, and past experience suggests that it would also help lift wages for other low-paid workers.” According to the Economic Policy Institute increasing the minimum wage would grow the national GDP “by about $22 billion, resulting in the creation of roughly 85,000 net new jobs over that period.” These positive results are just the tip of the iceberg.
The first federal minimum wage act in 1912 stated that the minimum wage should allow the worker to maintain a healthy lifestyle while meeting the cost of living. However, the current federal minimum wage ($7.25) does not allow for current cost of living and hasn’t for a while. Between 1997 and 2007 the federal wage was stagnant at $5.15 per hour with a raise of $2.10 seven years ago. Only 21 states have their minimum wages above the federal rate, including Massachusetts. According the MIT wage calculator this indicates a livable wage for one adult in most states. Currently only about ten states have laws that raises the minimum wage in conjunction with inflation. There have been many government officials who have backed this issue among them our own Senator Elizabeth Warren and more recently President Obama in urging Congress to increase the minimum wage to $10.10.
Even though there are many who back this increase, there are just as many who criticize the current call to create a more livable wage. The arguments from “retailers, fast-food chains and other service-industry businesses [say that] higher wages cut into hiring, profits and expansion.” While these might be valid concerns, there are more reasons that prove we need to raise the minimum wage then there are reasons against raising it. Which include but are not limited to:
- 1 in 6 Americans go hungry every night.
- Current SNAP(food stamps) cuts will reach 40 billion in the next 10 years.
- Large name companies (cough: Wal-Mart) hold food drives for its employees.
- Fast food workers around the nation are holding protests against low wages(minimum wages).
- Having a higher income adds a boost to the economy (which is sorely needed).
- Higher wages can lead to less reliance on SNAP and other welfare programs.
Hopefully we will be able to do more than just speculate what a higher minimum wage can do for the country and witness it first hand in the coming years.
