On February 8, 2014, The New York Times posted an article titled: The Case for a Higher Minimum Wage. The minimum wage was established in 1938 under the Fair Labors Standard Act. It was enacted to protect the American worker. If you watched the President's State of the Union address, he spoke on raising the minimum wage to $10.10 an hour. President Obama went on to state that millions of Americans would benefit from this wage increase and take them out of poverty and off possibly off government assistance.
According to Democrats, 4.6 million people would be brought out of poverty "without requiring the government to tax, borrow or spend." Apparently low wage paying employers actually help to bring the minimum wage down because their point of view is that the government is there to assist you in making ends meet. The low paying employer has an incentive to keep wages down and have his employees be subsidize by way of food stamps and Medicaid.
On the other hand, Conservatives favor the earned income tax credit as a way of discouraging the minimum wage increase. Conservatives say raising the minimum wage would cause an unnecessary income tax on the already poverty-stricken.
Reading this article will inform Americans on the subject of the possible minimum wage increase and shed light on just how large the wage gap is between the average American worker and corporate America.
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