Buying Power and Minimum Wage

Raising the federal minimum wage in the United States would have national economic benefits for everyone. Increasing the minimum wage would result in workers having more buying power. Buying power is a fancy way to say spending money. Billions of new money would be flooded into the economy because of this increase.

According to RaiseTheWage.org raising the minimum wage puts more money in the pockets of low income people and families. Workers can use this money to buy different goods and services within their communities. These large or small purchases feed directly into the economy, benefiting all of those around them. In a study done by the Chicago Federal Reserve Bank, for every dollar the minimum wage is increased, about $2,800 is spent the following year. This massive increase in annual spending will increase demand and job growth. Raising the wage by only dollar leads to billions of new revenue. A study done by the Economic Policy Institute  says that for every for every $115,000 put into the economy, one new full-time job is created. After the federal wage increases, billions of dollars will be spent by new consumers. This increase in spending will create hundreds of thousands of new full-time jobs for various US citizens.

Raising the minimum wage would also vastly help the middle class. According to Professor Oren M. Levin-Waldman from the Metropolitan College of New York raising the minimum wage would “create a new floor.” Waldman means that by raising the wages of those at the very bottom, will subsequently push everyone above them up as well. He describes this process as a “ripple effect.” Data from 1962 – 2012 show that whenever the minimum wage increased, the median wage increased with it. Waldman continues on to say that the middle class has been shrinking because of the stagnant minimum wage. If the federal minimum wage were to increase, there would be massive amounts of job growth for the middle class.

As you can see, this increase in spending money for the people at the bottom would help everyone else in the meantime. Raising the minimum wage is good for everyone! #RaiseTheWage

 

 

 

 

 

Dear Opponent of Increased Minimum Wage

Contributor to Tharawat Magazine, Shereen El Agamy, wrote an article called “4 Reasons Why The U.S. Should Not Raise the Minimum Wage.” Agamy illustrates 4 examples as to why the minimum wage shouldn’t be increased and tells readers how increasing the federal wage would be devastating. Accompanying these reasons are very dramatic images; One of which shows burning money:

Why are Euros burning? Isn’t this about the U.S. federal wage?

I’m going to explain why these four reasons provided by Agamy are false and tell you how raising the minimum wage would actually benefit the American people. Here are the four reasons why Agamy thinks the US shouldn’t raise the federal minimum wage:

1.) Raising the minimum wage risks inflation and hurts the middle class.

According to Oren M. Levin-Waldmen, public policy and public administration professor at Metropolitan College of New York, raising the minimum wage would actually increase purchasing power for everyone involved, therefore helping the middle class. Levin-Waldmen’s research shows that in past years when the minimum wage increased, the median wage increased with it. The process of increases the wages at the bottom, travels upwards, like a “ripple effect,” benefiting those working for more than minimum wage.

 

2.) Raising the minimum wage hurts employment.

According to the United States Department of Labor  increasing the minimum wage has little or no negative effect on employment of workers. The Department of Labor argues that raising the minimum wage would result in low-wage workers would have additional money they could spend on different goods and services increasing demand and job growth.

3.) Raising the minimum wage is the wrong way to help low-income families.

The Economic Policy Institute says that 28% of minimum wage workers are parents. With more than 76 million children in the United States, more than 1/4 of these children’s parents would benefit from the increase in minimum wage. While this percentage varies from state by state, parents all over the country would benefit from the increase of wages. Such a wide variety of people would be affected by the increase that there would be widespread economic benefits.

4.) Raising the minimum wage doesn’t help the people you think it will.

This is one of my favorite arguments, because those who oppose minimum wage always say that the only people who would benefit from raising the minimum wage would be teenagers, flipping burger part time. This sentiment is completely  untrue.

As you can see in the graphic above, 80.5% of American minimum wage workers are over the age of 25. Raising the minimum wage doesn’t just help the teenagers working part time, it benefits every type of person.

 

 

Nearly 1M in N.J. would benefit from $15 minimum wage, report says

Check out how the people of New Jersey would benefit from increasing the minimum wage via Nj.com

According to Inequality.org The world’s 1 percent, almost entirely billionaires, own $42.7 trillion dollars, more than the bottom 3 billion residents of earth.

Why Raise the Minimum Wage? by UC Berkley

UC Berkley Labor Center shows us a number of powerful reasons as to why the minimum wage should be increased.

Raise the Minimum Wage to $15 Per Hour by MoveOn

Watch Robert Reich tell you why the federal minimum wage should be increased!

Who We Are – Christine Troiano

Hi! My name is Christine Troiano and I am a contributor to Rai$e it! I am a senior at the University of Maryland, studying communications. Post grad I plan to venture to the West Coast in pursuit of a job in branding/marketing.

I have worked in retail as well as a a marketing and social media intern for a non profit organization. My internship was unpaid, but as a sales associate I never questioned to issue of minimum wage. The benefits of raising the minimum wage far outweigh any sort of negative implication it would cause. As Caroline said, raising minimum wage by even just $2.85, over 3 million Americans would not have to rely on food stamps. When the minimum wage was raised to $7.25 a number of states saw their unemployment rates decrease. It is proven that $7.25 is not an income someone can comfortably live on. By raising the minimum wage, the American community and economy will improve drastically.

Who We Are – Caroline Crowder

Hello! I’m Caroline Crowder and also a contributor to Rai$e it! I am also a Junior at Maryland studying communications and minoring in business. Ideally after college, I hope to work in event planning or marketing.

I’ve worked as a sales associate as well as an apartment CA, and always seemed to accept minimum wage as it was. It wasn’t until last semester that I took a class about the economy and realized all of the benefits of raising minimum wage. As Joey said, many people would be able to lead less stressful lives and be able to afford basic necessities. In addition, I’ve learned that there are even larger benefits that would affect the general public. According to a study by the Center for American Progress, raising minimum wage to just $10.10 would help over 3 million Americans get off food stamps. I’ve also learned that raising minimum wage would also be beneficial to businesses because many successful businesses already pay their workers beyond minimum wage to attract skilled workers. I want livable wages for all because I believe that those who work hard should get what they deserve and also believe that raising minimum wage would have a positive impact on businesses and our economy.

Who We Are – Joey Ciampa

Hey Guys! My name is Joey Ciampa, I’m one of five contributors to Rai$e it! I’m a Junior at the University of Maryland, College Park currently studying communications.

Gratuitous Selfie

I’ve been working various jobs since I was legally allowed to; 16 in Connecticut where I’m from. Coming from a fairly privileged household, I had never stressed about money. Working 20+ hours a week was enough to sustain my selfish need for cash. Along the way, I had encountered coworkers who didn’t have it as easy as me. Working multiple part time jobs, working 60+ hours a week, barely earning enough to eat dinner that night. These coworkers were not afforded the luxurious safety net I was so fortunate to receive from my parents. Connecting with these kind and generous people, I knew no one should have to live such a stressful life, scouring for available hours just to keep a roof over their heads. This is why I fight for livable wages for all!

 

What We Do – Rai$e It

We are five students at the University of Maryland College Park who are passionate about raising the minimum wage in the United States. Currently, the federal minimum wage is $7.25, which is much lower than it expectedly should be. In a study done by Pew Research, with inflation rates, cost of living, and the current richness of America taken into account, the minimum wage should be around $12 an hour. Knowing information like this baffles us; Why is the minimum wage $5 less than it should be? This is what drives us to do what we do, fight for the little guys who are just trying to survive.

Opposers think raising the minimum wage only benefits teenagers who work part time, which is completely untrue. According to the Economic Policy Institute 89% of people working for minimum wage are over the age of 20.

Every week, we will deliver new information regarding the state of income in the US and show why the federal wage should be increased!