Mo’ Money Mo’ Problems
Democrats say more pay for workers, Republicans say more problems for small businesses
The federal minimum wage increase is causing arguments between democrats and republicans.
March 18, 2021
Americans with low incomes are ecstatically waiting for the arrival of the expected $7.75 hourly wage increase to $15.00 an hour. Although a large percentage of Americans are eager to have this new found money added to their checks, some Americans are not too excited for this possible change.
“The federal minimum wage was last raised on July 24, 2009, when it rose from $6.55 to $7.25 per hour, the last step of a three-step increase approved by Congress in 2007. Before 2007, the minimum wage had been stuck at $5.15 per hour for 10 years” said the Raise the Minimum Wage campaign.
An article written by the Economic Policy Institute explained why the U.S needs the $15.00 minimum wage. Low wages hurt all workers and are particularly harmful to black workers and other workers of color, especially women of color, who make up a disproportionate share of workers who are severely underpaid.” — Economic Policy Institute
“Low wages hurt all workers and are particularly harmful to black workers and other workers of color, especially women of color, who make up a disproportionate share of workers who are severely underpaid.”
Many small business owners on the other hand are not in support of this “Democrat led bill”. Samantha Subin, a writer for CNBC, finds that after conducting a survey, “One third of small business owners say they’ll likely lay off workers if Congress raises the federal minimum wage to $15 an hour…”
Nikolas Lanum, a writer for Fox News, mentions an interview with Corina Morga, owner of C.R. Construction, who thinks “that companies like hers would inherit the cost from the mandate, thus putting a hiring freeze on projects as small businesses are priced out of local contracts.” Morga stated “that small businesses would be negatively impacted ‘the most’ by a proposed $15 federal minimum wage.”
Paycor is a software company that makes payroll charts that provides important analytics. Paycor showed a chart of the minimum wage for states during 2020 and the 2021 increases. As of 2021 there are 20 states that have the minimum wage of $7.25 and 30 states that have a minimum wage above $7.25.
High school students are surprisingly not in support of the minimum wage increase. A poll conducted on the Pawprint Instagram showed that out of 81 votes 42% are happy with the new minimum wage while 58% are not.
