Imagine the following: You are a 45 year old man with a Bachelor’s degree in business. After working on Wall Street for many years, you were fired due to the downturn in the economy. You are trying to get back into night school to receive your Masters. Until then, you are living alone in a studio apartment, you own one used car, and you are working at Starbucks. After your first week of grueling hard work, you excitedly open the envelope with your weekly pay and expect a big wad of money for your diligent work. Sadly, there is only about ? of what you expected, about $400 for about 60 hours of work. That’s really not a lot. As a Starbucks worker, you receive $18,400 for a year (“Average Hourly Rate for Starbucks”). Now imagine this: You are a 45 year old realtor living in a large, 3-story house with a wife, daughter, and son. You also own two new, expensive cars. After your first week at a new firm, you receive a thick envelope with about $2,000 for 60 hours of work, and you’re happy. As a realtor, you receive about $100,000 annually (“Realtor Salary (United States)”). Why are they different? It’s still 60 hours of work for both. Why does the realtor receive about five times the amount of money that the Starbucks worker does? Why can’t both workers be happy with the contents of their envelope? American minimum wage workers (like a starbucks worker) currently have a hourly salary of $7.25, a very low amount. These people have lots of trouble supporting their family (if any) and themselves. Many of these minimum wage workers are far below the poverty line ("So You Wanna Raise the Minimum Wage?”). This doesn’t seem fair if you compare it to the salary of realtors and other well-paying jobs. Although this doesn’t seem fair, others argue that it shouldn’t be raised because individual states can still change their own minimum wage, no matter what the federal is. But would happen if the minimum wage was raised? More money could go into the economy, and it would decrease poverty. There would also be less turnover and more employment. The U.S. federal minimum wage should be raised.

One reason that the U.S. federal minimum wage should be raised is because more money would go into the economy. Chad Halvorson, CEO of When I Work, states: “Raising the minimum wage means minimum wage workers have more money to expend which means more money ripples throughout the economy as minimum wage employees are able to spend more” (“The Pros and Cons of Raising the Minimum Wage”). This shows that when minimum wage workers spend more in the economy because of their salary boost, which is beneficial to the economy (“The Pros and Cons of Raising the Minimum Wage”). Also, Allison Doyle, a job searching expert, believes that higher wages for minimum wage workers would help the economy if overall budgets for salary were increased under a gradual increase (Doyle). In addition, this increase in minimum wage salary wouldn’t just help the economy, but individual businesses, too. Minimum wage workers (in this case, consumers) would give businesses more money for their product, which would give the businesses more money to control and take care of their businesses and/or for investments. President Obama was talking to Congress during his 2014 State of Union Address: “It will give businesses customers with more money to spend” (Lavender). The U.S. federal minimum wage should be increased because it would put more money into the economy.

Another reason that the U.S. federal minimum wage should be raised is because it would decrease poverty. Raymond C. Offenheiser of Oxfam America states: “... raising the minimum wage to $10.10 would lift more than 5 million Americans out of poverty and help 14 million children see a boost in their family income. Fourteen million women, including 6 million working mothers, would get a raise. Three million single parents would be better able to sustain their families (“Why Raise Minimum Wage?”). This shows that higher wages can raise many above the poverty line and help families sustain themselves (“Why Raise Minimum Wage?”). To add on, a Congressional Budget Office report found that a higher minimum wage could lead to lifting 900,000 people out of poverty ("Minimum Wage Debate: Valid Points”). Also, Allison Doyle had some input on this topic: “An increase in the minimum wage raises the standard of living for impoverished workers. The minimum wage hasn't kept up with inflation consequently the pay of many workers, particularly those with families of 3 or more people, are now well below the poverty level” (Doyle). Currently, when the product prices increase, the minimum wage doesn’t increase with it, staying at a low amount, and many minimum wage workers have large families they need to support. If it is increased, it will be consistent with the current inflation (price increase), and it would give those families money to support themselves, eventually pushing them above the poverty line (Doyle). The U.S. federal minimum wage should be increased because it would decrease poverty.

A final reason why the U.S. federal minimum wage should be raised is because turnover would decrease and there would be more employment. Economist Christina Romer found evidence that a higher minimum wage can lower turnover, or the rate at which employees leave an occupation and are replaced, which can raise productivity and be beneficial for employers ("The Minimum Wage Debate: Who's Right?"). Also, Chad Halvorson states: “Employees who are making a higher minimum wage feel more comfortable and satisfied in their minimum wage jobs meaning they are less likely to quit. This means there would be a lower turnover rate, which results in fewer expenses to hire and train new employees” (“The Pros and Cons of Raising the Minimum Wage”). This is saying that if there are higher wages, it will give the workers a reason to be motivated to work hard and earn more money, which decreases turnover (“The Pros and Cons of Raising the Minimum Wage”). This will be better for employers because they won’t have to train as many people for the job if less quit. Also, Allison Doyle believes that if the minimum wage was higher, workers would receive more money to sustain themselves and, possibly, families, so they would keep their jobs, having higher employment rates overall (Doyle). The U.S. federal minimum wage should be increased because turnover would decrease and there would be more employment.

But raising the federal U.S. minimum wage isn’t just beneficial. It could be very harmful to the economy and useless at times. Individual states and municipalities can still change their own minimum wage, so they don’t have to be at the federal. The federal U.S. minimum wage doesn’t matter to states and municipalities, so their minimum wage can be at any amount of money. However, most states currently comply with the new amount or surpass it. For example, Chad Halvorson states: “Many states have their own set minimum wages, which are currently above $7.25 per hour already. As of January 1, 2014, 21 states (and Washington D.C.) have minimum wages above $7.15 per hour (Washington being the highest at $9.32 per hour)” (“The Pros and Cons of Raising the Minimum Wage”). This shows that many states have higher minimum wages than the federal (“The Pros and Cons of Raising the Minimum Wage”). Since January 1, 2014, the rates have gone up for states’ minimum wages. Currently, 60% (30 states) of states have a higher minimum wage than the federal and 36% (18 states) are at the federal. Only 4%, or two states, are below the federal rate, which are Wyoming and Georgia. Although these states have a lower minimum wage than the federal, minimum wage employees are subject to both the state and federal, they are entitled to the higher minimum wage. So, currently, employees in Georgia and Wyoming are making the federal wage of $7.25 an hour and not the state minimum wage, which is $5.15 an hour (“Wage and Hour Division (WHD)”). Also, not only do states have higher minimum wages, but municipalities, too. San Francisco currently is at $10.55! (“The Minimum Wage Debate: Who's Right?”). The U.S. federal minimum wage should be raised.

In conclusion, the U.S. federal minimum wage should be raised. This is because more money would go into the economy, it would decrease poverty, turnover would decrease, and there would be more employment. Although states can still change their own minimum wage, no matter what the federal is, most states are at or above the federal (currently $7.25 per hour). Also, employees are always entitled to the higher wage, whether it is either the state and federal. If the U.S. federal minimum wage is raised, you, as a Starbucks worker, could almost be at the level of the realtor. You could live in a condo, instead of a studio apartment. You could own a brand new car, instead of a used one. You could go back to night school, and receive your Masters, and then you might be able to find an even higher paying occupation. This could potentially happen for every U.S. minimum wage worker. Well, only if the U.S. federal minimum wage is raised, and it should be.

Works Cited
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Lavender, Paige. "This Is What's Driving The Minimum Wage Debate." The Huffington Post. TheHuffingtonPost.com, n.d. Web. 04 Feb. 2015. .
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“Realtor Salary (United States) United States Home Change Country Don't See What You Are Looking For? Get A Free Custom Salary Report »." Realtor Salary (United States). N.p., n.d. Web. 29 Mar. 2015. .
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“Wage and Hour Division (WHD)." Minimum Wage Laws in the States. N.p., n.d. Web. 29 Mar. 2015. .
"Why Raise Minimum Wage? - CNN.com." CNN. Cable News Network, n.d. Web. 04 Feb. 2015. .