Minimum Wages in America

The nationwide struggle over minimum wage regulations may finally be coming to an end.  As of the beginning of June, Seattle, Washington passed a bill setting a record for the highest minimum wage nationwide at a lofty $15 per hour.

The yearly salary for a full-time minimum wage worker (40 hours per week) shoots from $19,115 to $31,200.  This is a 63% increase from the previous minimum salary of $9.19 per hour.  To those who were already working at the previous minimum wage, this drastic increase seems to be nothing short of a miracle.

Before the bill's approval in Seattle, the Congressional Budget Office (CBO) had set up two varying plans that both call for a nationwide increase in minimum wages.  The first plan calls for the wage to be set at $9.00, which would take two years for the plan to be completely in action.  The other plan sets the minimum at $10.10, taking a full three years to be completely implemented.

It seems as though Seattle is being used as a lab rat for the CBO's decision on how to handle this issue.  By the time the CBO has to make a decision on a wage law, the effects of Seattle's recently passed bill will begin to show, revealing the effects of inflation on minimum wage.  At this point, it is too soon to say what definite effects an increase would have on our economy, but it is easy to speculate on the possible pros and cons that come with the bill's approval-

Pros:

• This could be the start to closing the gaps of our nation's substantial economic inequalities.  An increase may reduce the levels of poverty in America, allowing opportunities for people currently labeled as lower class to move up in economic status.
• Initially, increasing the minimums to higher amounts would be a boasting point for the American government in international affairs.
• An increase in pay raise would transition to an increase in product consumption.  This increase in money flow would act as a stimulus to the economy, possibly helping us climb out of our major national debt.  This idea resembles President Roosevelt's New Deal, which was successful in the rebuilding of America's depressed economy.

Cons:

• An increase may interfere with current company budget policies.  Especially for small businesses, this increase may be impossible to compensate, resulting in job cuts.
• The annual salary of a full-time minimum wage worker is similar to that of a sixth year Staff Sergeant in the US Army.  This salary is also greater than all low-ranking military members.  (Essentially, someone could flip burgers full-time and make more money than an experienced veteran.)
• To compensate for the salary increases, product prices could shoot up to a point where they are no longer affordable for the working class.

Although it is indefinite on what the future holds, the CBO must weigh out the potentials when it comes to finalizing the national wage minimum.  Should endorsement of the current state-regulated wage minimums continue, or should they be slightly augmented and risk the (already weak) well-being of our nation's economic status?