Raising the Minimum Wage to $12 per Hour
Minimum wage increment proposal in Texas has created interesting debates among individuals. The proposal is objected at increasing the general wage for individuals earning minimum as a way of boosting economic growth and creating income equality (Cooper 1). Based on the proposal the ideas behind is that despite the fact that America is quickly recovering from the global recession most are still subjected to low income which characterizes low spending, income inequality and slow economic development (Change 1). The supporters of the policy asserts that the proposal would work on benefiting and supporting economic growth and ensure that jobs obtained are not lost. On the other hand the opposition makes the claim that this would result in at least a decrease of job opportunities based on low turnover (Change 1).
Increasing the employees minimum wage in Texas would imply that the minimum salary workers are exposed to more money for expenses which will directly increased the rippled money throughout the state’s economy since the employees have the capability of spending even more (Cooper 1). This is an opportunity of creating increased jobs since with higher spending of minimum salary staffs will result in high earnings from businesses and the necessity of hiring additional workers will grow due to the rise of sales. In the past three or so decades the minimum wage has only been increased three times and the rise can be useful in controlling the occurrence of inflation (Cooper 1).
The policy change can also lead to the decrease of social programs spending due to the attainment of stability for most families. Employees that are subjected on minimum wages are the ones that have to depend on social programs in supporting their families since the income is insufficient (Cooper 1). The raise of the income would therefore, develop a higher capability of persons on supporting selves without a dependence of social provisions. Taxation would therefore decrease since the funds required to suit the programs will be lower. This is a way of creating equality in the communities as income equality supports social as well as economic growth through fairness. The turnover rate will also be lower since the workers will be highly motivated and satisfied with their work which means that quitting will not be an option (Cooper 1).
However, the rise proposal is highly rejected by employers since it will increase their spending. This implies that the policy amendment may result into high layoffs since most employers operate in tight budgets (Cooper 1). The raise of wages will hinder the ability of businesses in compensating the same employees number which may lade to layoff to accommodate the designed budget. With the making of more money by some employees most of them will be left with no jobs. In addition products prices are likely to increase so that the income increment can be supported which will lead to a higher expense on the living cost which will defiantly pressure an additional wage raise. There are likely to be lesser hiring since most of the businesses capability to hire additional staffs will be lowered (Cooper 1). Employment competition is likely to intensify since even those that are highly qualified are likely to fight for minimum wages thus pushing those meant for the positions away. The economy will definitely grow but in order to attain stability many transformations must be acquired and this will take much time.
Work Cited
Change, Inc. Raise Minimum Wage to $12 per Hour in Texas. 2017. Retrieved from https://www.change.org/p/texas-legislature-raise-the-minimum-wage-to-12-hour-in-tx
Cooper, David. Raising The Minimum Wage To $12 By 2020 Would Lift Wages For 35million American Workers. 2015. Retrieved from http://www.epi.org/publication/raising-the-minimum-wage-to-12-by-2020-would-lift-wages-for-35-million-american-workers/
