Monday, July 27, 2009

Increase in minimum wage to stimulate economy?

The liberal side blog-site, Media Matters, recently posted a blog regarding the latest minimum wage increase and the effects it will have on our economy. As many sites reported differently and numerous individuals gave their opinion of what is gonna happen with this sudden increase in wage, the blog was very forward about supporting that the newest law will stimulate money into our economy. Authors of the blog, I must say, were right in supporting the wage increase and they not only justified it but were also very careful to express both sides of the issue. It was evident that Media Matters condones the newest attempt to save our economy, when it clearly stated that Robach, NBC's national correspondent, "ignores evidence that minimum wage increase will stimulate economy". The word ignore carries a very negative connotation with it, therefore hinting that Robach was wrong in not providing evidence that the increase will benefit the country. With a national audience to view and comment on the blog, Media Matters wisely presented opposing views of the issue and quoted them as saying that "Some small business owners criticized the timing of the increase, saying it's a burden in a weak economy". Yes, its true, that might be one of the small problems with the new law, but by acknowledging the possible flaws, the author always provided the advantages of it as well. The author provides a statement from the Business for a Fair Minimum Wage that declared, "we expect an increased minimum wage to provide a boost to local economies. Businesses and communities will benefit as low-wage workers spend their much-needed pay raises at businesses in the neighborhoods where they live and work." His side on this issue became even more credible as he provided not only statement but sources such as the Economy Policy Institute. It is logical to think that an increase in wage can affect businesses by having to spend money they dont have in this recession and therefore cutting jobs, but it is also logical that by giving millions of low wage workers a higher pay, it will stimulate them to spend more money and therefore add more to one of our GDP's component, Expenditure, to increase our economy. I do believe and hope that this strategy will work.

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