Top Pro & Con Arguments

Pro

Raising the minimum wage would help reduce the federal deficit.

According to Aaron Pacitti, PhD, Associate Professor of Economics at Siena College, raising the minimum wage would help reduce the federal budget deficit “by lowering spending on public assistance programs and increasing tax revenue. Since firms are allowed to pay poverty-level wages to 3.6 million people — 5 percent of the workforce — these workers must rely on Federal income support programs. This means that taxpayers have been subsidizing businesses, whose profits have risen to record levels over the past 30 years.” [42] According to James K. Galbraith, PhD, Professor of Government at the University of Texas in Austin, “[b]ecause payroll- and income-tax revenues would rise [as a result of an increase in the minimum wage], the federal deficit would come down.” [43]

Read More