When $10.10 would inject $22.1 billion dollars into

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 When the minimum wage was first introduced in 1938 ($0.25 an
hour), the federal minimum wage has increased 22 times. The minimum wage is the
lowest possible rate that employers can pay employees. The Economic Policy
Institute claim that a minimum wage increase from the current rate of $7.25 an
hour to $10.10 would inject $22.1 billion dollars into the economy and create
85,000 new jobs over a three-year period. A person on minimum wage makes only a
little more over the poverty line. In a 2014 Congressional Budget Office
report, placing the minimum wage at $9 would lift 300,000 people out of
poverty, and an increase to $10.10 would lift 900,000 people out of poverty. If low-income
workers could earn more money, their dependence on, and eligibility for,
government benefits would decrease. The Center for American Progress stated in
2014 that raising the federal minimum wage by to $10.10 would reduce spending
on Food Stamps by 6% or $4.6 billion. The 34 Organization’s for Economic
Cooperation and Development (OECD) member countries, the United States has one
of the highest levels of income inequality, beaten out by only Chile, Mexico,
and Turkey having higher levels of income inequality. This says a lot about
why the U.S needs to raise the minimum wage. On the other hand, employers feel that
people with the lowest level of skills cannot justify higher wages. In A
study done by Jeffrey Clemens and Michael J. Wither revealed that minimum wage
increases result in a deducted average monthly income for low-skilled workers, $100
less during the first year following a minimum wage increase and $50 over the
next two years, because of a decrease in employment. According to an Apr. 2016
study by the Executive Office of the President’s Council of Economic Advisors,
“higher wages for low-income individuals reduce malefaction by providing
viable and sustainable employment… raising the minimum wage to $12 by 2020
would result in a 3 to 5 percent malefaction decrease (250,000 to 540,000
malefactions) and a societal benefit of $8 to $17 billion dollars.”  A 2013 study found that living wage ordinances
“lead to moderate reductions in expected larceny, burglary, larceny, and
MVT rates.” Investigator who studied crime rates and the
minimum wage in New House of York City over a twenty-five -class period found
that “increases in the real number minimum wage are found to significantly
reduce looting and murders… a 10 percent increase in the real minimum wage
outcome in a 6.3 to 6.9 percent drop-off in murders” and a 3.7 percent
decrease in robberies.


Categories: Budget


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