The minimum wage should be raised to $12.50 gradually, by the year 2020

Underemployment: A situation in which a worker is employed, but not in the desired capacity, whether in terms of compensation, hours, or level of skill and experience. Read more: http://www.investorwords.com... It appears to be that we were both using the term underemployment correctly. Poverty: the state of being inferior in quality or insufficient in amount (as defined by Oxford dictionaries, definition 2.) I was not referring to the poverty threshold in America, but to a definition of poverty in general. I also made an assumption, it was commonly accepted that someone who can't afford their clothing, nutrition, and housing from their own assets would be considered impoverished. As to why I don't believe it should be left up to the states, I hope that my next point will answer that question. P2: Having a low minimum wage means that many people will be in need of extra money to cover their basic needs. While there are charities in place that provide for low income individuals, it would be unwise to rely on the goodness of people's heart to cover for such a vast amount of the population. So, in order to provide for less fortunate Americans, who migrated into our country with low skills or were unable to afford a higher education, our government enlists safety net programs, A.K.A. income assistance programs. Tanf: Temporary Assistance for Needy Families Tanf was established to help low income families be able to provide for themselves. They accomplish this task by providing money to low income families for a certain amount of time (varies by case,)establishing programs that promote job preparation and marriage, and programs that encourage the formation and longevity of two parent households. 16.6 billion dollars spent annually on Tanf by the federal government. (Us census bureau) Housing: Section 8 housing and Federal Rental assistance Section 8 housing, formerly known as projects, are Federally built and maintained using U.S. tax dollars. Families living in these establishments pay little to no rent. Because these persons are low income individuals, sometimes receiving no income at all, they do not pay much into the tax pool either. Federal Rental Assistance, uses the same housing vouchers that are used under section 8, but only pay a portion of the families' rent. This portion is calculated as no more than 30% of that families income and the unsubsidized rent is left to the family to pay. $57,881,100,000 spent annually by the federal government. Snap (Supplemental Nutritional Assistance Program) formerly known as food stamps Snap is for qualifying families for use on grocery purchases only. Average of $4,284 per household. EITC (Earned Income Tax Credit) The EITC is a tax refund for qualifying persons for up to 100% of the income tax they paid to the Federal government, it is important to note that this does not include social security and Medicaid taxes. The EITC can be turned into cash and used to purchase any good. $3,373 per instance for a minimum wage earner. (Calculated by benefits.gov) Total annual safety net program spending by the Federal government: $362,000,000,000 (This includes more programs than those mentioned above.) It is evident that low minimum wages create a lot of need throughout America. BY allowing companies to pay wages at $7.25 per hour or lower, we are allowing companies to gain more profits and forcing the federal government to pick up the bill. This is why I believe that the minimum wage should be raised Federally instead of on a state by state basis. Yes, while it is true that low skilled workers become less competitive, they will still need to cover their basic needs. This would mean that a given state will be able to make low skilled workers more competitive in their statewide workforce, and give them the potential of a higher paying job, but the federal government would have to cover for the needs of these people. I'd like to remind you that the primary source of revenue for the federal government is taxation, which means that it is tax payers who are really covering these costs. By Raising the minimum wage to $12.50 federally, we could reallocate capital put into safety net programs and make things fairer to taxpayers nationwide.