"The labor market absorbs the minimum wage," said Reich. "Turnover goes way down when there's a minimum-wage increase. Employees -- when they stay longer, they'll be more experienced and more productive. And the employers will have lower turnover costs." Heidi Shierholz, an economist at the left-leaning Economic Policy Institute, said it's one way to shift money from corporate profits -- which companies often sit on -- to low-income workers, who can do immediate spending. "When you get an increase in the minimum wage, you're getting a wage increase to the people that are low-wage families who depend on these earnings to make ends meet," said Shierholz. "They have no choice but to spend that money in their local economy. That's the stimulus you get." According to Shierholz, jacking the federal minimum wage from $7.25 to $8.25 would give a raise to 10 million workers, including many currently earning their state minimum wage. That could ultimately pump as much as $9 billion into the economy, she said. "At a time like this, there is nothing else putting upward pressure on wages."
There is much to debate in regards with minimum wage and many sides to be told. Many Americans believe that an increase in minimum wage would devastate the economy leaving our nation in an irreversible constant outcry. Even our own nations past president in the time of his office was torn. President Bill Clinton sat down with the Time Magazine and gave two very different views in retrospect of minimum wage.
"Now, I've studied the arguments and the evidence for and against a minimum wage increase. I believe the weight of the evidence is that a modest increase does not cost jobs, and may even lure people back into the job market." (President Bill Clinton, State of the Union Address, Jan. 24, 1995)
Then only a few days later contradicts his statement with another;
"[ C]linton himself explained two years ago, hiking the minimum [wage] is 'the wrong way to raise the incomes of low-wage earners.'" (Time, February 6, 1995, p. 27)
Some Americans have a grey interpretation on it such as Vicky White a psychologist states that “If you want more pay make yourself expensive, get an education like the rest of the people do. White also acknowledges that there must be a minimum wage set so that younger wage earners don’t get taken advantage of.
Works cited
(President Bill Clinton, State of the Union Address, Jan. 24, 1995)
(Time, February 6, 1995, p. 27)
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