Raising the Minimum Wage

Raising the Minimum Wage
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Raising the Minimum Wage
The minimum wage sets a benchmark for promoting income equality and means to afford the basic standard of living. The minimum wage is a standardized least amount of remuneration that employers must comply with as stipulated by the government and differs between countries or jurisdictions. Countries, including the US, the UK, and Australia, redefine the position of the minimum wage to promote economic growth with occasional adjustments to minimum wage levels to adapt to ramifications from inflation, among other economic factors. Arguments arise over the appropriate level for minimum wage sensitive to relevant social and economic contexts. Commonly, the minimum wage is perceived to be equivalent to the living wage, ensuring employees afford the necessities, including housing and food. On the other hand, raising the minimum wage could negatively impact employment rates and small businesses. Despite the downside, raising the minimum wage benefits workers and employers and facilitates economic growth.
Mainly, a favorable minimum wage produces higher earnings and better quality of life for the employees. Subsequently, workers get more disposable income for food, shelter, and healthcare, among other necessities. Most workers and families are placed in a position to afford the cost of living, which reduces poverty in society (Dube, 2019). Pertinently, most minority groups comprise the population living below the poverty line. Over the years, marginalized groups have dealt with racial, cultural, or gender disparities in employment, including earning less than their privileged counterparts. Himmelstein and Venkataramani (2019) note that increasing the minimum wage reduces the income inequality caused by perceived discrimination and prejudice against some communities. Subsequently, increasing the minimum wage levels leads to more community members meeting the basic living standard, reducing poverty.
Increasing the minimum wage further promotes economic growth through aspects of spending and taxation. Increased earnings for workers allow individuals to increase their spending habits. Subsequently, increased consumer spending stimulates demand and competition, which leads to economic growth. Furthermore, most economically disadvantaged populations rely on government financial funding to afford necessities. Raising the minimum wage reduces poverty, reducing the number of people relying on government assistance programs (Dube, 2019). The reduced government spending indicates that increased budgeting could be directed to productive investments that drive economic growth. Moreover, increased wage means more taxable income for the government, which facilitates government budgeting in education, infrastructure, and healthcare, among other areas, to promote economic growth. Overall, raising the minimum wage leads to increased consumer spending, tax revenue, and reduced gover...