In a recent speech, United States President Joe Biden has stated that he would like to increase the minimum wage from $7.25 to $15. The minimum wage structure of America was last altered in 2009. The government’s proposal for raising the minimum wage rate over four years has faced mixed reactions.
In a report published by the U.S Department of Labor, 22 states still follow a minimum salary of $7.25 or less. The law will force the states to fix the minimum wage to $15 an hour.
According to many economists, the wage rate increase will create a challenging situation for small and medium-sized businesses. Many companies won’t pay their employees the increased wage and will be forced to fire staff to stay afloat.
On the flip side, according to Gabriella Papillion, the increase in wage structure will help to stop the mistreatment of workers through low wages paid by employers. Many companies are earning millions of dollars and are paying an unlivable salary to their employees. This bill will eliminate exploitation and bring workers to a standard where they can improve their livelihood. A junior finance major, Ryleigh Rowland says that the legislation will help some workers, but it will come with severe long-term consequences. Rowland added that this would compel many companies to increase production costs, which will impact the US economy. In cities where the cost of living is high, the proposed bill will help the people ensure they can cover their bills. However, the question remains whether these changes will eradicate exploitation or harm small businesses?