Benefits of Increasing Minimum Wage Discussed

Minimum Wage Increase

A minimum wage increase would benefit many Americans. Currently, the minimum wage in New Jersey is set at $8.25. Many of the people who get paid minimum wage are living below the poverty line.

Also, many people believe increasing the minimum wage would be detrimental to jobs but this is not the case. Therefore, minimum wage should be increased because it will raise millions out of poverty and it will improve the economy. Raising the minimum wage would be beneficial to many, including those who currently live under the poverty line. According to John Light from Moyers and Company, a single parent earning minimum wage takes home about $15,080 a year. For a family of three, that is $3,400 below the federal poverty line. As a citizen of the United States, one should not have to live under poverty if they are working a full time job. The government should raise the average persons pay to an amount that would keep a family above the poverty line especially since the standard of living has increased.

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The last time the minimum wage was increased was four years ago. Obviously, inflation continues to occur and has increased the prices of everyday items and with that has increased the standard of living. Bryce Covert from Think Progress stated that, if the minimum wage were increased to $10.10 it would lift nearly 6 million Americans out of poverty. So, the minimum wage must be increased to compensate for the new and higher standard of living and to lift many hard working Americans out of debt.

Furthermore, raising the minimum wage will boost the economy. It is a known fact that when people are making more money, they are spending more money. According to Gregory Karp from the Tribune, a study was conducted in 2011 by the Chicago Federal Reserve Bank. It found that for each dollar in a minimum wage hike, a household income can rise up to $1,000 and with this spending increasing by $2,800. Adding on to this, as people spend more money stores will be doing better in business. They will hire more people not less and in fact increase jobs as a result of a minimum wage increase. Thus, a minimum wage increase is beneficial not only to the average citizen but to the economy as a whole because it will lead to increased pending. To conclude, the minimum wage must be raised. An increase in the minimum wage will raise millions of Americans out of poverty. Also, it will help to improve the economy and consequently, create more jobs for the American people.