The American Dream-a big spacious house, several acres of land, two kids, a sizable bank account and wise investments-this is what the majority of people who inhabit the face of the earth desire. Yet, some do not have the income to obtain these possessions. Raising the minimum wage is an overdue pay raise for working families. Working families deserve a raise which would restore the value of the minimum wage to its level in 1982. Raising the minimum wage will strengthen Social Security and Medicare and pay down the debt by 2013 for future generations. The wage increase is good for American workers and good for the American economy. (Bill Clinton) .
The increased wages apply to employees of businesses that receive revenues of at least $500,000 in a year. It applies to employees of smaller firms, if the employees are engaged in interstate commerce or in the production of goods for commerce, such as employees who work in transportation or communications. It applies to employees of federal, state, or local government agencies, hospitals and schools, and it generally applies to domestic workers.
The minimum wage is an important tool in raising the floor for low-income earners. Together with other policy instruments (such as employment insurance, child tax benefits, social assistance), increasing the minimum wage will help in the battle against poverty and excessive inequality. The impact from the last increase in minimum wage (1996) created more than 10 million jobs, and the unemployment rate has fell from 5.4 percent in 1996 to 4.2 percent in 1999 (World Almanac 2001, pg.162). .
Economic studies have not produced any negative effects of an increase in minimum wage on employment. Recent research has suggested that higher wages can increase employment, because they increase employers" ability to attract, retain, motivate workers, and increase the reward to work. Many economists believe labor markets cannot remain as tight as they are without boosting wage pressures, and companies are already paying higher wages to fill skilled positions.