The minimum wage has been the topic of debate since 1938 when it was first implemented in the US. The minimum wage is the salary floor that employers are ready to offer their workers, and it often determines the level of wages and a general well-being of employees. As for now, the federal minimum wage makes $7.25 per hour. This figure, however, is already higher in 21 states and the District of Columbia. Currently, there is a heated debate on whether the higher salary rate would benefit American economy on the whole.
A solid reason to raise the minimum salary is to help employers cope with the current inflation. Additional income would be spent on the domestic economy and help people escape poverty. A salary increase can also level gender-driven income inequalities. The government will be capable to get more revenue from payroll taxes. Despite these advantages, companies do not support higher minimum wages. For businesses, it means employing fewer workers or increasing the operation cost. As the result, businesses can damage their compatibility setting higher prices on their production. For small companies, a larger minimum wage will definitely result in reduced operational capability.