Should the USFG Raise the Minimum Wage?

Started by Kohai ·

The current federal minimum wage is 7.25 and has been stagnant since 2009. Many states have minimum wages much higher than the minimum. Some argue the minimum wage increases help workers while others argue it harms small businesses and harms economy in the long run.

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For 33% · 2 Undecided 17% · 1 Against 50% · 3

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Arguments for (1)

Prevents "race to the bottom"

Without a higher floor at the national level to account for a higher cost of living, states may race to the bottom to attract businesses, leading to lower wages. Additionally, if employers have greater bargaining power and the market for wages resembles a monopsony, we should not expect the market to arrive at an efficient number on its own. Hence, a modest increase is likely reasonable.

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Arguments against (2)

Ignores varying conditions by region

The cost of living and economic impacts of the minimum wage vary by region, so setting a hard number at the national level is likely counterproductive if we want the minimum wage to be well-tuned to local economic conditions.

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Prevents a "race" to increased unemployment and civic apathy

Sets a hard cap on job availability. People need jobs for more than just income. Training, purpose, experience.

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