Currently, the federal minimum wage is set at $7.25 an hour. The minimum wage in the state of Washington is $9.32, which is already the highest state-level minimum wage in the country. The increase to $15 will only be effective within the city boundaries of Seattle, and will be effective for large businesses in 2017 and for every business in 2021.
Supporters of the increase in minimum wage hope that increasing the minimum wage will lift hundreds of thousands of people out of poverty, reduce the wealth gap in America, and increase spending, among other economic benefits. I believe that raising the minimum wage is a good first step to fixing many of these problems, but I believe that more can be done as well to help bridge the gap between the rich and the poor as well as reduce poverty in our country. With Seattle being the first place to drastically hike up the minimum wage, only time will tell how it effects the economy of Seattle.
Local businesses have numerous complaints about the increase in wages. They are saying that the increase will cause them to cut jobs and halt future expansion plans. If cutting jobs and slowing expansion end up being results of the increase in minimum wage, then the plan may end up hurting more than it helps. Raising the minimum wage by around 60% could be especially problematic for small business trying to get their feet under them, which could also hinder the economy if small businesses begin failing. Luckily for these companies, the large companies have over two years, and the small businesses have over six years to prepare themselves for the new minimum wage hike.
What do you think about this increase in minimum wage in Seattle? Do you think this should become a nationwide change? What do you think are the pros and cons of increasing the minimum wage?
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