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Discussion on Raising Minimum Wage in The U. S.

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The Democratic senator from California, Mark Leno, said that no one in the Golden State should live in poverty due to not earning enough income. The current minimum wage in California is $10. 50. It will increase by a dollar per year until it becomes $15 an hour in 2022. This is microeconomic because it will reduce the employment for those workers who are not highly skilled. But this is also a macroeconomic issue. Business leaders are worried that such a big change will happen not too far from now. Just a few years left. 6 years to be exact.

McDonald’s CEO has already said that raising the minimum wage will prevent McDonalds from employing people interested in low paying entry level jobs. Libertarians are opposed to having a minimum wage because it can have a negative impact because it would create barriers to entry. Let’s say a person comes up with a business plan and he decides to hire some workers. He would not be able to hire a lot of workers because the minimum wage is high. So, chances are that his business will not be so productive. Therefore, he does not enter the industry. I myself being a Libertarian do not think it is a good idea to raise the minimum wage. The main reason is that it prevents people from taking part in the economy Raising minimum wage is necessary for lifting out of poverty, reducing mental health and raising consumer purchasing power. Also, the most of Americans, labor unions and business owners highly support raising the minimum wage.

Especially, the higher wage for workers would put the stronger foundation for the economy by increasing demand for goods and services. Hard working people would feel that their time has value and their work has been rewarded. The unhealth stress will be decline when people have enough income for their families. People will lift out of poverty to the middle class to follow the American dream. However, they need government support them by raising the minimum wage instead of giving them welfare and Medicare. As they make higher wages, they will have extra money to spend, and it will lead to increase the consumer purchase power. Business owners should give their workers a raise for recognizing their good performance, and the workers will work harder to get the job done employers. California Low-income families are waiting for their wages reaching $15 per hour by 2022 to lift out of poverty to lead to the middle class.

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