MINIMUM WAGE SHOULD BE INCREASED, ACCORDING TO OUR ECONOMY
Raising the minimum wage is sound economics. Here’s why:
Consider inflation: Most people don’t realize that the real minimum wage or the minimum wage adjusted for inflation has been declining in a steady pace. If we adjusted the previous minimum wage for inflation today, it would be higher than the status quo minimum wage.
Reduce unemployment: Researchers have also noted that in 1968, the unemployment rate was only 3.6 percent with a higher real minimum wage. In contrast, today our unemployment rate is higher while the real minimum wage is low.
Boost the economy: Researchers show that the minimum wage should be raised by 2 dollars in the US based on our GDP. Increasing the minimum wage would help more than a third of the labor force being paid on an hourly basis.
Take a global perspective: Another reason why minimum wage should be increased due to inflation is because the minimum wage in the US is much less compared to other countries. Looking at minimum wage globally, we can see that in countries like Germany and Switzerland have a lower youth unemployment rate while having a higher minimum wage. This also proves that by raising the minimum wages, it will make no difference on unemployment and will actually help the economy.
These direct correlations prove that by raising the minimum wage according to inflation, it can actually benefit, rather than harm, our economy.
Puja Batchu is a student at Centennial High School.