Raising the minimum wage: A little money goes a long way

In September 2013, California lawmakers passed a bill to raise the minimum wage to $10 per hour by 2016 from the current $8 minimum wage. This change will make the state’s minimum wage the highest in the country.

Lawmakers plan to raise the wage to $9 per hour by July 2014 and bring the total to $10 by 2016.

This bill is long overdue. According to mit.edu’s living wage calculator, the hourly living wage for one adult in the Santa Clara County is $12.01. The current $8 minimum wage simply is not enough to ensure that a family gets food on its table every evening. 

Arguments against raising the minimum wage suggest that it will result in the loss of jobs, as well as that the raise will take a toll on businesses employing high numbers of low wage workers. However, Wal-mart, which employs almost 1 percent of the United States, according to Business Insider, reported that its net sales for 2012 added up to a whopping $443.9 billion.  

Also, according to CBS News, Walmart CEO Michael Duke’s salary was $20.7 million last year. As people such as Duke get richer, the rest of the low-wage population is getting poorer, widening the gap between the rich and the poor. In addition, in 2013, Walmart made $17 billion in profits, according to USA Today. There is no excuse for the company to underpay its workers.

Even McDonald’s, whose work force comprises mostly of minimum wage workers, had an annual revenue of $27.5 billion last year, according to CNN. In addition, in 2013, Walmart made $17 billion in profits, according to USA Today. There is no excuse for the company to underpay its workers.

For large, successful companies like Wal-mart and McDonald’s, being able to pay workers 25 percent more per hour so that they are able to pay for a roof over their heads should not be too difficult. Additionally, over 20 percent of these workers are relying on food stamps because of their low wages.

If CEOs are paid millions and their companies can bring in billions of dollars of revenue, surely companies can afford to pay workers a few more dollars. And if not, the companies’ shockingly cheap items can and should be raised by a dollar or two to support their workers. 

Raising the minimum wage will also affect every single large company. Because of this, companies such as McDonald’s and Burger King will be paying their workers the same amount – both companies are in the same boat, so neither company can complain.

What many people also do not realize is that increased pay will lead to increased spending. Low-wage workers who earn an extra 25 percent every hour will be more likely to spend their money, ultimately helping the economy. The more products that are being bought, the more consumers there are, and the more jobs will be opened for other low-wage workers. Also, employees who earn more will be happier with their jobs and less likely to protest or cause problems. The higher the worker morale, the more business will be brought in, a win-win for both the employee and the employer. 

For families depending on low-wage salaries, an increased minimum wage will reduce the number of jobs that parents have to take to support their families. This will allow a greater emphasis on education in many poorer families, because with higher pay for adults, children will not be pressured to support their family and take on an extra job. 

While an increased minimum wage does not provide total relief for those who rely on low wages, it is certainly a step in the right direction. It may not be a complete solution, but it does help workers support their families in an area where the living wage is extremely high. Ultimately, this extra $2 an hour will go a long way for families that are struggling to get by every day, even if it means that we as consumers must pay an extra dollar for a Big Mac.