With President Biden talking about raising the federal minimum wage from $7.25 an hour to $15.00 an hour, I figure I’d talk about and explain why it needs to happen, and how it’s anti-caplistictic to oppose it.

The people who work at fast-food restaurants and alike, currently making $7.25 an hour are essential workers, who are often overlooked due to their position. However, the economy would not survive without them. We need them, and as such, need to pay them a livable wage. While some are worried about their wages matching those of skilled workers, the fact is those people will also be making more. If unskilled workers made as much as skilled workers, what incentive do skilled workers have for doing their job and not going to an unskilled job? The fact is, skilled workers also deserve more. 

The main difference between capitalism and communism is that capitalism has incentives for workers. The more and better you work, the more you make. But production has increased massively since the 1900s, while wages have not significantly increased. Therefore, workers are more successful, but not making more money for it. Instead, this extra money made goes to management and executives and is the reason the one percent has so much money. Production rose 69% from the 70s to 2018, while wages rose only 11%. If we were a truly capitalist society, we would have wages to match production. 

The best argument against raising the minimum is that the cost of living differs per state, and as such, the people in North Dakota don’t need to make as much as those in California. While this is true, it doesn’t account for interstate competition. If California has to pay its workers more than Nevada, more businesses would do business there and this would actually incentivize paying people less. This takes business away from larger states and causes states to try to pay people less. This will increase the number of people living below the poverty line. And with the cost of living on the rise anyway due to inflation, it makes sense to raise the minimum wage.

The last, most common, and weakest argument against raising the minimum wage is that it will cause inflation, and prices on everything will increase in price. While it will cause some inflation, inflation already happens on its own because the government is against raising taxes when the economy is booming just because it’s unpopular, this keeps more money in circulation and causes inflation. So inflation is already going up, and the price of things remains more or less the same. Additionally, wages are only a small part of any cost. McDonald’s has to buy food, and Walmart has to buy products, labor is only a small cost of these companies and would not significantly affect the average person’s daily life.

So in conclusion, wages should be raised to match productivity around the board. This has to happen nationwide to prevent incentivizing lowering wages, which will not signently cause inflation. Inflation will continue to happen until the government realizes to raise taxes during good times, so they can better assist, and prevent the bad times. But none of this matters as congress voted against it, after all, pro and con are opposites, so what’s the opposite of progress?