Pros And Cons Of 15 Dollar Minimum Wage
Introduction
Minimum wage is the lowest hourly pay that employers are required to pay their employees by law. It is a controversial topic that often sparks debate as to whether it should be increased or left as it is. One proposed increase is a $15 minimum wage. This article will explore the pros and cons of a $15 minimum wage.
Pros of a $15 Minimum Wage
1. Decrease in Poverty
A $15 minimum wage would lift many workers out of poverty. According to a report by the Economic Policy Institute, increasing the minimum wage to $15 by 2025 would reduce poverty rates by 1.3 percentage points and improve the lives of 1.3 million workers.
2. Boost in Consumer Spending
A higher minimum wage would increase the buying power of low-wage workers, resulting in more consumer spending. This, in turn, would stimulate the economy and create more jobs.
3. Reduction in Income Inequality
Increasing the minimum wage to $15 would reduce income inequality. According to the same report by the Economic Policy Institute, the average income of the bottom 10% of workers would increase by 21.1%, while the average income of the top 1% of workers would decrease by 0.5%.
4. Improved Health Outcomes
A higher minimum wage would also result in improved health outcomes for low-wage workers. According to a study by the National Bureau of Economic Research, increasing the minimum wage by $1 would reduce the number of suicides by 3.6% to 6.5% among adults with a high school education or less.
Cons of a $15 Minimum Wage
1. Job Losses
One of the biggest concerns with a $15 minimum wage is that it could lead to job losses. Employers may not be able to afford to pay their workers the increased wage and may have to lay off workers or reduce their hours to compensate.
2. Increased Prices
A $15 minimum wage could also lead to increased prices for consumers. Businesses may have to raise prices to offset the cost of paying their workers more.
3. Small Business Struggles
Small businesses may struggle to afford a $15 minimum wage. They may have to cut back on hiring or reduce their hours of operation to compensate for the increased labor costs.
4. Automation
Another concern is that a $15 minimum wage could lead to increased automation. Businesses may opt to use machines instead of human workers to reduce their labor costs.
Conclusion
The pros and cons of a $15 minimum wage are complex and varied. While it would lift many workers out of poverty and reduce income inequality, it could also lead to job losses and increased prices for consumers. It is important for policymakers to carefully consider the potential effects before making any decisions on minimum wage increases.