Minimum wage is the lowest hourly wage an employer can legally pay an employee. Congress made minimum wage a law under the Fair Labor Standards Act in 1938. The federal minimum wage is currently $7.25 per hour. The minimum wage for employees who receive tips is $2.13 per hour. Federal minimum has not changed since 2009. Many states have their own set wage rates, including New York which is currently $16.50. Experts report that if the minimum wage kept pace with workers’ productivity since 1968, the inflation adjusted minimum wage would be $24 per hour.

         Many people feel that the minimum wage should not be increased due to potential drawbacks. One potential drawback is a decrease in jobs, with lay-offs, slower hiring, and humans being replaced by technology all very likely with a higher minimum wage. A higher minimum wage could also be harder on small businesses, causing them to go out of business. This could also result in increased prices so that businesses are able to afford to pay their employees a higher wage. 

         However, many argue that the benefits outweigh the drawbacks. They argue that a higher minimum wage will lift many above the poverty line, reducing reliance on government assistance programs. With a higher pay, minimum wage workers are more likely to spend additional income, which can stimulate the economy. Additionally, better pay can lead to higher job satisfaction, motivation, and lower employee turnover. 

          With the many pros and cons of increasing the federal minimum wage, the topic has become highly debated. Do you believe we should increase the federal minimum wage or leave it at $7.25?