Top Pro & Con Arguments
Increasing the minimum wage would reduce income inequality.
Among the 34 Organisation for Economic Cooperation and Development (OECD) member countries, the United States has one of the highest levels of income inequality, with only Chile, Mexico, and Turkey having higher levels of income inequality.In 2012 the richest 1% of the US population earned 22.83% of the nation’s total pre-tax income resulting in the widest gap between the rich and the poor since the 1920s. A 2015 study found that the decrease in the inflation-adjusted value of the minimum wage since the 1980s has been a contributor to America’s high levels of inequality. Isabel Sawhill, PhD, Senior Fellow in Economic Studies at the Brookings Institution, stated in 2014 that raising the minimum wage would reduce income inequality, and Jason Furman, PhD, Chairman of President Obama’s Council of Economic Advisers, stated in 2014 that the weakening value of the minimum wage “is one of the important [reasons]… for inequality at the bottom.” Read More