Question

Would Increasing the Minimum Wage Reduce Poverty? FRED PAGE ONE Economics

Please summarize and provide economic perspective feedback on why minimum wage should be increased.

Answer 1

• It will flow back into the economy-

America’s poor usually cannot afford to save their funds, they need to use it right away, thus it goes towards businesses. Funds being spent enhances the overall cash flow & benefits the economy. Wealthy persons are more likely to save their funds, keeping it in the bank, where it benefits the economy less. Increasing the minimum wage aids corporates by allowing more citizens to purchase their products.

• It lessens income inequality-

The 20 wealthiest Americans own as much riches as the bottom half of the nation combined. America lags far behind other developed nations in terms of income equality. A proposal to increase the minimum wage would lift 4.5 million citizens out of poverty. Inequality of income has been shown to trigger social tension so lessening it is in everybody’s best interest. Above & beyond being the morally compassionate action to take, it would enable the U.S. to become a more equal / fair society.

• It will aid the children of destitute households-

Research has revealed that children, which grow up in destitute families are far more likely to do poorly at school, undergo depression & badly integrate into society. Thru improving the living standards of destitute children & providing their parents the disposable income required for school supplies & instructors, a new generation of successful citizens can emerge. Aiding U.S’s poor children is a long run investment for the nation’s future.