In the United States, over forty million people live in poverty, struggling to support themselves and their families with extremely low wages. In light of this fact, California is set to increase the minimum wage to $15, although the federal minimum wage remains at only $7.25. The initiatives taken by legislators and the governor of California should be matched at the federal level, where the minimum wage should gradually be raised to lift millions of Americans out of poverty and bring improvements to the economy.
It is unacceptable that the current level of federal wages results in only a $15,000 annual salary, making it nearly impossible for the working poor to survive in the United States. Increasing the minimum wage is a necessary action that must be taken to help ensure that anyone working a full-time job earns a living wage. The argument that most minimum wage workers who would benefit from the change are high schoolers who don’t need the money is false, as estimates indicate that 90% of those whose incomes would rise from the rule would be above the age of 20.
No one can live or support a family on the current minimum wage; an increase will help people, families, and communities in which the new wealth will be spent. Opponents to enacting this policy argue that increasing the wages would lead to unemployment — a proposition that has no statistical basis.
Research actually suggests that a minimum wage increase could stimulate the economy as workers spend additional earnings, raising demand and causing job growth. An extensive study by economists David Card and Alan Krueger concluded that raising the minimum wage does not lead to any significant decrease in employment. Their study tracked employment in fast food industries in Pennsylvania and New Jersey, showing that when the minimum wage was raised in one area, there were no noticeable effects on unemployment.
In the last few decades, the presence of steady inflation and wage stagnation have combined, resulting in wages today that are much lower in real (adjusted) value than they’ve been in the past. Raising the minimum wage in California and the rest of the country would allow people to keep a constant purchasing power and have their wages still be worth the same value. The $15 minimum wage in California would barely be an increase in real value compared to the wages of the late 20th century.
With no proven links to changes in unemployment, an increase in the minimum wage in California will help many people living paycheck-to-paycheck: an initiative that should be matched by many other states and even the federal government.
Even as one of the world’s richest countries, America is still plagued by problems of poverty. States like California can be the leaders in a movement to help millions of American lives through higher wages. It is imperative that other states and the federal government finally follow California’s example and raise the minimum wage to a living wage.
