The Benefits of Increasing the Minimum Wage and The Costs of the Same

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Minimum Wage
The term minimum wage is often used during the campaign period as politicians are seeking for re-election or to be elected for their first terms. Numbers are usually floated, and the public is forced to discuss which politician is better placed to offer them what is deemed reasonable. Minimum wage denotes the lowest payment rate owed to employees for any service rendered to an employer. This rate is recognized by law, and an employer could be sued if they are found to be paying their employees a figure that is less than the one considered minimum. In the U.S., the debate of minimum wage often takes center stage in many discussions. However, many disagree when it comes to the question of raising the same. Therefore, there is a need to ask questions and interrogate the debate that rages on regarding minimum wage. For example, are there benefits of raising the minimum wage? Who stands to benefit? Are there costs involved, and what are some of these costs? Therefore, provided herein is a discussion about the benefits of increasing the minimum wage and the costs of the same.
Benefits of Increasing the Minimum Wage
One of the obvious benefits of increasing the minimum wage of a country is that it helps to increase the earnings of the populace and thus enhance the standards of living. When employees are paid more money for their labor, they end up having more money for consumption. For example, in the U.S., the proposal to raise the minimum wage to $15 was reported to have a positive effect of enhancing the lives of 17 million workers (Congressional Budget Office, 1). The report further indicates that the number of people with incomes below the poverty line would decrease by a whopping 1.3 million by 2025. Such numbers are encouraging and offer support for the idea of increasing the minimum wage. As of 2020, the poverty rate in the U.S. stood at 11.4%, which was an increase from the previous year’s rate (United States Census Bureau). This percentage translated to about 37.2 million people, and the number will continue to rise as children are born into families belonging to this lot. However, an increase in the minimum wage would help reduce such numbers. With more people earning above the poverty threshold, the chances are high that living standards will change, and poverty will be reduced.
Aside from the above, increasing the minimum wage will help reduce income disparities in the U.S. In the U.S. today, a majority of the people who are paid lowly and are living below the poverty line are women and people of color (Zipperer). An increase to a minimum wage of $15 would end up be...