Topic: Raising the Minimum Wage in California
I. Introduction
A. (Attention Getter) How many people do you know that work more than 40 hours a week, yet they can not even afford a decent quality of life.
B. (Main Claim) After researching the pros and cons of raising the federal minimum wage, I came to the conclusion that the federal minimum wage should be increased so that job growth rises, poverty rates go down, and government welfare spending goes down.
D. Our purpose is to alert you about the low California minimum wage and its effects, propose way to fix the issue, and explain the benefits of doing so.
II. Body
A. Problem Claim: (factual claim) Almost 13% of Californians are currently living below the poverty line
1. Raising the minimum wage would increase economic activity and job growth
a. The Economic Policy Institute stated that a minimum wage increase from the current rate of $7.25 an hour to $10.10 would inject $22.1 billion net into the economy and create about 85,000 new jobs over a three-year phase-in period.(Cooper, 2013)
b. Economists from the Federal Reserve Bank of Chicago predicted that a $1.75 rise in the federal minimum wage would increase aggregate household spending by $48 billion the following year, thus boosting GDP and leading to job growth. .( Aaronson & French, 2013)
2. Increasing the minimum wage would reduce poverty
a. Since the minimum wage has not kept up with inflation, many workers, particularly those with families of three or more people, are now well below the poverty level. .( Aaronson & French, 2013)
3. A higher minimum wage would reduce government welfare spending.
a. The Center for American Progress reported in 2014 that raising the federal minimum wage by 6% to $10.10 would reduce spending on the Supplemental Nutrition Assistance Program (SNAP, formerly known as food stamps) by 6% or $4.6 billion. . (West & Reich, 2014)
B. Solution Claim: (policy claim) Congress should pass the Raise the Wage Act
1. The federal minimum wage is just $7.25 and has not increased since 2009. The Raise the Wage Act of 2017 would gradually raise the federal minimum wage to $15 an hour by 2024.
a. Raise the federal minimum wage to $9.25 this year and increase it over the next seven years until it reaches $15 an hour in 2024. (Sanders & Bernard, 2017)
b. After 2024, adjust the minimum wage each year to keep pace with growth in the typical worker’s wages. (Sanders & Bernard, 2017)
2. Gradually raising the federal minimum wage to $15 by 2024 would lift pay for 41 million workers—nearly 30 percent of the U.S. workforce.
a. Affected workers who work year round would receive a raise on the order of $3,500 a year—enough to make a tremendous difference in the life of a preschool teacher, bank teller, or fast-food worker who today struggles to get by on around $20,000 a year.( www.epi.org/publication/why-america-needs-a-15-minimum-wage/.)
Work Cited
David Cooper, "Raising the Federal Minimum Wage to $10.10 Would Lift Wages for Millions and Provide a Modest Economic Boost," Economic Policy Institute website, Dec. 19, 2013
Daniel Aaronson and Eric French, "How Does a Federal Minimum Wage Hike Affect Aggregate Household Spending?," Chicago Fed Letter, Aug. 2013
Rachel West and Michael Reich, "The Effects of Minimum Wages on SNAP Enrollments and Expenditures," Center for American Progress website, Mar. 2014
Sanders, and Bernard. “Text - S.1242 - 115th Congress (2017-2018): Raise the Wage Act.” Congress.gov, 25 May 2017, www.congress.gov/bill/115th-congress/senate-bill/1242/text.
“Why America Needs a $15 Minimum Wage.” Economic Policy Institute, www.epi.org/publication/why-america-needs-a-15-minimum-wage/.