The federal minimum wage should be raised to $15 an hour

In round 4 I want to cover the following : 1. Arguments for a $15 federal minimum wage. 2. Summary of and Responses to CON’s statements 3. Closing statement.1. The federal minimum wage should be raised to $15 an hour. The primary reason the Federal Government should mandate a $15 minimum wage is so it have hard data on all the effects of this public policy tool. The majority of current research suggests that increasing the minimum wage will do the following: a) “Provide a much-needed boost to the earnings of low-wage workers.” [1] b) Stimulate the economy as workers spend their additional earnings, raising demand and job growth. [1] c) Senator Edward Kennedy once called the minimum wage “one of the best antipoverty programs we have.”. [2] d) Reduce the number of single moms living in poverty. [1] e) It is good for public health [3] Not only are these benefits backed by the data, but the following are likely. [4] a) Job Hunt Motivation b) Single Parents benefit c) Job Creation d) Increased Morale e) Greater odds of high school completion [3] f) Reduced costs for state Medicaid [3] g) Less people choosing welfare over work. These are all excellent reasons to increase the minimum wage. The Federal Government should mandate a $15 minimum wage because that is a substantial increase, and we will see clear trends in the data to help us understand all the effects of a minimum wage that is above the poverty line. Another reason for proposing a $15 minimum wage, is because it will place our minimum wage earners above the poverty line. Our federal government uses two measures of poverty: “poverty guidelines” and “poverty thresholds” [5] Poverty thresholds were developed in 1963-1964, based largely on estimates of the minimal cost of food needs. Poverty guidelines are a dollar figure used by the census bureau to calculate the number of people in poverty. [6] As an example, the poverty guideline for a single person living in “48 Contiguous States and D.C.” is $11,770 for 2015. It would take 1624 hours at the 7.25 minimum wage to earn this amount. Many minimum wage workers get 30 hours a week or less, and can not rise above the poverty guideline. If the minimum wage were $10 this same worker could earn $15600 a year, which is almost enough to support a spouse or child at the poverty line($15,930). If the Federal minimum wage were $15, this same person would earn $23400. This is enough for three people to be above the poverty line, or for four people to almost rise out of poverty. [6 - poverty guideline table] The issue of public health is often forgotten in the Minimum wage debate: “Last year, Minnesota legislators successfully enacted a raise in the minimum wage, taking Minnesota from one of the lowest-paying minimum wage states to one of the highest. State Health Commissioner Edward Ehlinger described the move as the greatest legislative victory of the year. - “I’d argue that it was the biggest public health achievement in that legislative session — and probably in the four years I’ve been health commissioner” [3] The Federal Government should mandate a $15 minimum wage because it will improve the health of low income earners. This means there will be less drain on medical resources and possibly even net savings as federal costs of Obama Care rise. A study “in APHA’s American Journal of Public Health, found that the wage increase would decrease the risk of premature death by 5 percent for adults ages 24 to 44 living in households with an income of about $20,000. In addition, the children of such workers would experience substantially increased odds of high school completion and a 22 percent decrease in the risk of early childbirth.” [3] A “higher minimum wages reduce enrollment in traditional Medicaid — the portion of the health insurance program in which states pay a substantial share.” There are many other reasons why a $15 federal minimum wage would be good for minimum wage earners, and for the country. One helpful way to think of it is: You get more of what you pay for! I would rather see workers paid a living wage. I would rather not see increased spending on welfare and medicaid. 2. Summary of and Responses to CON’s statementsCon has the following concerns / issues - Cost of Living - Will lead to job loss - Does very little to help the poor - EITCLet me respond to some of his errors. - Cost of Living “Despite the high cost of living, it remains very popular.” CON is taking a simplistic view that any increase in prices as absolutely bad. For the worker earning minimum wage, their purchasing power at $15/hour is far greater than it was at $7.25/ hour. For the rest of us, a Big Mac meal ($3.99) would cost about 17 cents more ($4.16) which is hardly going to hurt us.[7] One of the problems with the current Federal Minimum Wage is that it is not indexed to the consumer price index or the cost of living. [8] Adjusted for inflation/cost of living, the highest minimum wage was in 1968, when it was equivalent to $10.69/hour in purchasing power.[9] The effect on the cost of living will be small, but the effect on those earning the minimum wage will be huge. - Will lead to job loss CON seems to ignore all the scholarly papers that state that an increased minimum wage will have little effect on the unemployment rate. The literature concludes “we find no evidence that the rise in New Jersey's minimum wage reduced employment at fast-food restaurants in the state.” [10] The Pew Research Center found that the strongest opposition to a minimum wage increase came from Republicans, and that the opposition in the debate are more partisan politics that based on fact.[11] - Does very little to help the poor CON is correct that not all people in poverty are the working poor. Many are on some form of welfare. I want to reward the working poor with a higher minimum wage so they will be not so poor. Raising the Federal minimum wage to $15/ hour will even allow some to be above the poverty line. It will increase the health of these working poor. It will encourage people who are on welfare to consider working. CON is absolutely incorrect in suggesting that an increase in the Federal Minimum Wage will not benefit the working poor. - EITC CON sings the Republican party line that tax breaks are the answer. This is absolutely false. The people who benefit the most from tax breaks are the wealthy who can afford to hire an accountant to protect their money from government. I have a good income. I pay almost no taxes because the wealthy have a high motivation to find tax breaks. There is one great advantage of the EITC. It often encourages people who are on welfare to participate in the workforce.[12] As such, I applaud it. It is a good tool to reduce welfare abuse. Combined with a decent ($15) minimum wage there should be even more benefits for the working poor, and for tax payers.Closing Statement. We need a Federal Minimum Wage of $15[1] http://www.epi.org...[2] http://www.forbes.com...[3] http://thenationshealth.aphapublications.org...[4] http://smallbusiness.chron.com...[5] https://en.wikipedia.org...[6] https://en.wikipedia.org...[7] www.thinkprogress.org/economy/2015/08/03/3687171/15-minimum-wage-big-mac/[8] http://www.dol.gov...[9] https://www.fas.org...[10] http://davidcard.berkeley.edu...[11] http://www.pewresearch.org...[12] http://www.cbpp.org...[13] http://www.tylervigen.com...this is a good resource https://www.policyalternatives.ca...