The Federal Minimum Wage Should Be Increased (Essay Example)

The minimum wage of our country has been the same for the last thirteen years while everything else has gone up around it, including rent, gas, groceries, etc. The current federal minimum wage is seven dollars and twenty-five cents an hour, and has been since July of 2009. The federal minimum wage should be increased to benefit our country in a multitude of ways. The minimum wage rate should be increased to compete with the cost-of-living increase that the country has been facing in recent years. Raising minimum wage would also decrease the poverty rate in the United States significantly. Along with the raising of wages also comes fueling the economy’s growth. These things would benefit not only the low wage worker, but everyone else as well.   

In 2009, the cost of living was significantly less than what it is today in 2022. Today, rent makes up roughly forty percent of the consumer price index. With prices what they are today, it leaves very little to go towards basic necessities such as groceries, clothing, and gasoline. At seven dollars and twenty-five cents an hour, after a forty-hour work week, a low-wage worker will only bring home $261 a week and $1044 a month. The average cost of groceries for a single individual is $355.50 a month. Groceries alone make up nearly a third of an individual's income on their own at minimum wage pay. On top of gas being approximately four dollars a gallon, there is little left afterwards for necessities such as healthcare. Most doctor’s offices require some form of a copay and for some that is plainly not an option, so they don’t seek healthcare when needed, which contributes to illness not only to their families but their communities as well. In 2015 alone, the average cost of rent in Florida increased by 24%, resulting in most Americans having roommates are living with a partner. Cities are expanding and supply and demand is increasing for both rental properties and homes for sale, which in turn is driving the prices continuously higher and making it even harder to survive at the bare minimum pay. It is nearly impossible to live alone on one single income minimum wage paying job. 

Which leads us to the poverty rate in the United States. Eleven percent of our work force is currently facing food insecurity and nearly 140 million people in our country are facing poverty. The current poverty rate can be compared to that of the Great Depression. With many out of work and a good percentage of those that are working being paid the federal minimum wage, the average American struggles to afford life on their own. If the minimum wage was increased, nearly 40 million workers would see a rise in wages. A rise in wages for some that fall below the poverty line means the ability to no longer be forced to live paycheck to paycheck, and security to things such as food, a basic education, health care, clean water, and energy. The rise in wages would bring higher incomes into the struggling communities and allow them the opportunity to have better belongings and a better way of life. The CAP has demonstrated that an increase in pay for some would decrease the use of government aid such as the Supplemental Nutrition Assistance Program (SNAP) and in turn would allow families to purchase food with earned income instead. Which is proof that higher wages would greatly contribute to decreasing poverty in the United States. With this also comes access to things not previously had, like extra money for entertainment, retirement, and savings. Things that should be considered necessities but are not due to the lack of extra funds for them in the homes of low wage workers. 

With an increase in wages, there would be more spending. Which in turn would fuel the economy’s growth. The Federal Reserve of Chicago determined that a low wage worker would spend an additional $2,800 in the year after a one dollar an hour increase in wages, and the Institute for Policy Studies says that for every dollar added to an employee’s wallet, about one dollar and twenty-one cents is added to the overall economy. When employees have extra to spend, they usually do, resulting in multiple things benefiting from it, especially the economy. For example, a family unable to typically enjoy your normal Christmas, swapping gifts and celebrating, would now be able to. They could buy gifts without fear of what bill will have to go unpaid to do so. Increasing minimum wage increases revenue spent. Money that previously did not exist for some is now able to be placed into the economy by those same people on the things they need or want.   

All things considered; the federal minimum wage should be increased. Increasing the wage would have multiple positive influences. It would help to combat the cost of living. It would also reduce poverty. Raising the federal minimum wage would also put money back into the economy to help fuel it as well. The ability to afford minimal things should be a basic human right. There are many things required to live and live well and everyone should have access to those things, however at a minimum wage that is simply just not possible. The day-to-day struggles of many low wage workers are real and have a very simple solution: increase federal minimum wage.