My Proposal

Minimum Wage of America - My Proposal

           Goal/Optimal Soultion:

•Raise the federal minimum wage to $8.75 from the previous $7.25

•Increase the minimum wage in segments over a long period of time

•Put more money into the economy to stimulate economic growth

•Helping those are trying to support a family off of a minimum wage salary

•Reduce state/federal taxes on citizens by reducing the amount of people depending on the government to provide them with food and shelter

Plan Of Action:

          Federal minimum wage reaches $8.75 by the beginning of 2016

• Raise the federal minimum wage by $0.50 every 8 months starting January 1st, 2014

•Give businesses and companies time to figure out how to  rearrange income before next minimum wage increase

•Monitor unemployment rates as minimum wage steadily increases

•States that already have minimum wages higher than the original $7.25 and projected $8.50 federal minimum wage can keep their current state minimum wage

Costs:

By keeping and raising the minimum wage, businesses are being told how much they have to pay workers instead of the businesses deciding how much each employee’s labor is worth. Unemployment is expected to rise as businesses will have to fire the workers they can’t afford to pay. Businesses are being forced to rearrange income.

Benefits:

•As the minimum wage increase to $8.75, the 2.9% of Americans currently making the minimum salary will have more money in their pockets to spend in the economy.  As inflation is rising, the value of $7.25 won’t buy as much as it did in 2007 when the minimum wage was last increased. The people who need the money the most now have more money to afford things like food and shelter instead of relying on the government to supply it for them.

Who Would Support This?

Supporters:

•The Democratic Party would definitely support my proposal. They’ve been pushing for a minimum wage increase because they believe that eventually the minimum wage should become a living wage. The democrats believe that increasing minimum wage will help bring a lot of people out of poverty while stimulating the economy. Although they’d like to see a greater minimum wage increase, they would support the presented proposal.

Non - Supporters

•The Republican Party would be against my proposal to raise the minimum wage. The republicans are more focused on working towards less government intervention in the economy, and by telling businesses they have to raise their wages exerts much government power into the economy. Minimum wage has had a history of increasing rates of unemployment, which the republicans also wouldn’t like. They believe that the federal minimum wage should stay at $7.25. 

Previous Outcomes:

•Minimum Wage Fair Act of 2007:

•Months after the minimum wage began to increase, there were no signs of a high unemployment rate

•Economy recession cannot be pinpointed on the minimum wage increase

•Companies had enough time to rearrange income before the next minimum wage increase occurred to prevent firing many workers

•After the minimum wage increase stabilized to $7.25, however, the economy fell into a recession of high unemployment. 

Intended Outcome:

•Increase money flow in the economy

•Stimulate the economy

•Provide more money to people living off of a minimum wage salary

•Cut taxes by providing people who live off of government aid with more money through their minimum wage salary

•Keep the minimum wage consistent with the rising inflation