Pro effects of raising the minimum wage
Supporters of higher minimum wages scored a victory in 2007, when Congress endorsed the first major increases in a decade--increasing the minimum wage from $5.15 to $7.25 per hour. The vote, in turn, enabled proponents to revisit many of their arguments for raising the minimum wage, including its positive effects on local tax bases, working women and primary income earners in low-wage working households.
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Economic Equity
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Raising the minimum wage does not automatically lift low-income people out of poverty, but it eases their struggle to afford basic needs like food and shelter. Additionally, even the prospect of a small increase can add meaning and dignity to low-wage labor.
Effects on Women and Minorities
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Working women reap greater benefits from a minimum-wage increase, since they fill more low-paying jobs than men in the health care, hospitality and retail industries. Minority women account for 1/3 of all female workers, according to raiseminwage.org, so raising the minimum wage proves especially beneficial to them.
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The "Ripple Effect"
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Higher minimum wages often exert a "ripple effect" in American culture. Whenever the federal rate goes up, many employers follow suit, even though they're not obligated to do so. On that basis, roughly 11 percent of the workforce could expect such a benefit, "Business Week" predicted in November 2006.
Effects On Business
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Putting more money in low-wage workers' paychecks helps improve the local tax base, while reducing the likelihood of long-term dependence on government assistance programs. Local businesses benefit, as well, from reduced turnover and absenteeism rates, according to raiseminwage.org.
Effects On Families
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Increasing the minimum wage helps the working poor in a subtle, yet overlooked way. Since many low-wage workers are the primary breadwinners in their households, making them the first beneficiaries of any "ripple effect" increases.
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References
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