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Why the Minimum Wage Should Be Increased to a Living Wage
1. Introduction
1.1 Attention-grabbing hook about struggles of low-wage workers
Millions of Americans juggling two or more jobs still find themselves unable to cover rent, food, and unexpected medical bills. According to the Society for Human Resource Management, the federal minimum wage of $7.25 per hour leaves workers below the threshold needed for basic needs, forcing many into credit card debt and financial insecurity (Society for Human Resource Management). A Federal Reserve Bank of Boston report also notes that low-income consumers carry substantially higher levels of credit card debt now than before the pandemic, further constraining their spending and quality of life (Hagler and Patki).
1.2 Brief definition of minimum wage versus living wage
The minimum wage is the legally mandated rate employers must pay, currently $7.25 per hour federally, whereas a living wage is “the minimum income necessary for a worker to meet his or her basic needs,” including housing, nutrition, healthcare, education, and other essentials (Society for Human Resource Management).
1.3 Thesis statement
The minimum wage should be raised to a living wage to reduce poverty, boost the economy through increased consumer spending and lower welfare costs, and improve overall quality of life for workers and their communities.
2. Reducing Poverty
2.1 Explanation of how current wages fall short of basic needs
At $7.25 per hour, full-time minimum-wage workers earn just over $15,000 annually—far below the income needed for stable housing, nutritious food, and healthcare. This gap perpetuates cycles of poverty, as wages do not cover basic living expenses (Society for Human Resource Management).
2.2 Examples of workers working multiple jobs yet still struggling
Many workers hold two or even three part-time positions but still cannot make ends meet, sacrificing sleep and family time yet remaining entrenched in economic hardship.
Note: This section includes information based on general knowledge, as specific supporting data was not available.
2.3 Evidence that higher wages lift families out of poverty
Empirical studies in diverse settings find that increases in minimum wages modestly reduce poverty rates. In most developing countries examined, higher minimum wages correlate with lower poverty incidence, lifting some households above the poverty line (Gindling).
3. Economic Benefits
3.1 Increased consumer spending from higher wages
Paying a living wage creates a healthy economic cycle, allowing workers to spend more on local goods and services, which in turn supports business growth. Industry case studies note that when workers earn enough to meet basic needs, communities become more dynamic and resilient, benefiting employers and suppliers alike (Anker and Anker).
3.2 Reduced government welfare costs
By enabling workers to self-sustain, living wages decrease reliance on public assistance programs. Advocates argue that reducing welfare outlays can offset increased labor costs and free up government resources for other priorities (“The United States Ought to Require That Workers Receive a Living Wage”).
3.3 Potential for job growth and business stability
Businesses paying living wages report lower turnover and higher morale. Stable employment relationships foster productivity and allow companies to invest in training, leading to sustainable growth and reduced hiring costs over time (Anker and Anker).
4. Improving Quality of Life
4.1 Better health outcomes from less stress and improved access to care
Adequate income reduces financial stress and enables individuals to seek preventive medical care rather than deferring treatment.
Note: This section includes information based on general knowledge, as specific supporting data was not available.
4.2 Enhanced work-life balance and family time
Recent surveys show that 56 percent of employees value work-life balance even over pay, indicating that financial security must be coupled with manageable schedules. Higher wages can allow workers to reduce excessive hours and spend more time with family (Mayne et al.).
4.3 Stronger communities and social well-being
When workers earn a living wage, they engage more fully in community life—supporting schools, volunteering, and participating in local events. This social cohesion fosters safer, more vibrant neighborhoods and builds social capital (Anker and Anker).
5. Conclusion
5.1 Restate thesis in new words
Ensuring that minimum wage workers earn a living wage is essential to break cycles of poverty and build a more equitable society.
5.2 Summarize main points
Raising wages to a living standard reduces poverty, stimulates economic activity, lowers government spending on welfare, and improves mental, physical, and social well-being.
5.3 Call to action
Policymakers must enact legislation to link minimum wage rates to local living wage benchmarks, and the public should support measures—like indexed wage increases—that guarantee a dignified standard of living for all workers.
Works Cited
“Living Wage and Minimum Wage.” Society for Human Resource Management, 2012.
Gindling, T. H. “Does Increasing the Minimum Wage Reduce Poverty in Developing Countries?” IZA World of Labor, n.d.
Anker, Richard, and Martha Anker. “Case Studies for Living Wage.” IDH – the Sustainable Trade Initiative, n.d.
Hagler, Rees, and Dhiren Patki. “Why Has Consumer Spending Remained So Resilient? Evidence from Credit Card Data.” Federal Reserve Bank of Boston, 13 Aug. 2025.
“Most Americans Support a $15 Federal Minimum Wage.” Pew Research Center, 22 Apr. 2021.
“The United States Ought to Require That Workers Receive a Living Wage.” DebateUS, n.d.
Mayne, Mahalia, et al. “Work/Life Balance is More Important than Pay for 56% of Employees.” Inspiring Workplaces, 11 Jan. 2023.