In the article “Labor Leaders See Focus on Wages as Key to
Union and Democratic Victories,” by Steven Greenhouse, he talked about a gathering
that took place in Houston where the nation’s leaders talked about ways to
revive union movement and raising wages for American workers. In the upcoming
election, an increase in wages will play a big roll who gets elected because
America workers are now demanding higher pay. In the 1954 union workers represented
about 35 percent of employment, but now it’s no longer the case. Union workers
now represent about 11 percent of the work force which is less than it was half
a century ago. In Chattanooga Tennessee a worker at a Volkswagen plant voted
against the United Automobile Workers, which was very devastating for union members
as they struggle to recruit new members.
President Obama is
pushing for federal minimum wage to increase to $10.10 an hour, but I think
this will become problematic because this will lead to 500,000 lost jobs.
Although the opportunity cost of this implementation does sound tolerable, I
feel for those 500,000 workers who will lose their job as a result. Also, I think
this will cause an inflation because consumers having more disposable income.
I personally believe that the minimum wage shouldn't be raised. Minimum wage jobs aren't supposed to, and do not provide enough income for people to live off of. People cannot live off of 7.25 an hour, and they still can't live off of 10.10 an hour. If the minimum wage were to be raised, jobs would be lost and there would be more inflation. Instead of focusing on raising the minimum wage, our president should be focusing on enhancing the opportunity for Americans to receive quality education.
ReplyDeleteThe Congressional Budget Office released a study showing that a raise in minimum wage to $10.10 an hour would cause a loss 500,000 jobs, but also lift 900,000 people above the poverty line. Although 500,000 is a significant number of jobs to lose, I think a strong case can be made to raise the minimum wage. In Wisconsin, a poll found that 62% of voters supported a raise. In Florida, the support is even higher, at 72%. The issue of raising minimum wage is likely to be key in the upcoming presidential election.
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