Elmer Perez-Hernandez

Mr. Hackney
English 101:Rhetoric
1 December 2014
More Money in the Cycle
For the longest time America has had a widening gap between the lower class and the
upper class. Big corporation and extremely wealthy individuals can be held responsible for this
but then again this is capitalism. The rich get richer and the poor get poorer is the saying. Not
much is able to change when most hardworking Americans are earning a minimum wage salary
to support a family. The minimum wage, although plentiful for a teenager, is hardly enough to
survive on for someone with a family to feed. In recent times, movements and protests have been
spreading throughout America to raise the minimum wage for all. In an effort to overcome
poverty and to stimulate the economy, Seattle has taken the lead and has decided to raise their
minimum wage up to fifteen dollars over the course of next decade. While some people believe
that raising the minimum wage will harm the economy and American workers, the reality is that
raising a much needed wage is essential to allow more spending power, help the lower class, and
create more stable jobs.
The middle and lower class are inching closer and closer towards the bottom which
means less luxuries. The luxuries that the rich could afford with ease. I concede that people are
able to afford some such as a television, but in our economy we could have more. Increasing the
minimum wage could allow more spending power which means more stimulation in the
economy. Small businesses would get more customers and more money would flow into the
system. Although some might object that this flow of money will cause more problems, I reply

that large corporations profits are at an all-time high right now and can absorb the slight
damage. Nick Hanauer, entrepreneur and venture capitalist in Seattle, states The fundamental
law of capitalism is that when workers have more money, businesses have more customers
and more workers. It seems that it is only logical that when a person has more money they are
more willing to spend it on things such as food, flowers, or anything simple that you just want.
More money could not only help the families out, but also stimulate small business growth.
Seattle could be looked at as an experiment and theoretically this could change the nation given
that employment or other factors wont be affected too much. The raise in minimum wage alone
could allow the lower class and middle class to gain some of the money that doesnt usually fall
into their hands.
In addition, the lower classes can benefit greatly from an increase in the minimum wage
because it could lift heavy burdens such as medical bills and school bills in the long run.
Although some might say that things will worsen such as the employment rate, I retain that the
economy is able to support the increase. Robert Reich, secretary of labor under the Clinton
administration, states that, [Michael Reich and Arindrajit Dube] examined employment in
several hundred pairs of adjacent counties lying on opposite sides of state borders, each with
different minimum wages, and found no statistically significant increase in unemployment in the
higher-minimum counties, even after four years. This means that businesses are able to adapt to
such a change that will benefit the working class. The plan in Seattle isnt just to raise their wage
from nine dollars to fifteen from one day to the other, but to have a gradual increase over the
course of a decade. From this perspective, the economy can rise again to what it once was.
Another major breakthrough for the working class is that with a higher minimum wage,
moreover, wed all end up paying less for Medicaid, food stamps and other assistance the

working poor now need in order to have a minimally decent standard of living. (Reich 1). Like
Reich said, the lower class can have more benefits from the government with more money in our
economy flowing. As a result of all of this the lower class can be helped with an increased
minimum wage that wont affect too many factors such as the employment rate.
Furthermore, the minimum wage would fetch more benefits than issues because there
will be no major effect that harms workers. This effect is the employment rate. Diana FurchtgottRoth, former chief economist of the Department of Labor, effectively states, low-skill jobs
remaining in the city will see increased competition, with medium-skilled, experienced workers
winning out over low-skilled, mainly young workers trying to reach the first rung of the career
ladder. I agree that there will be more competition with more money offered for low skilled
workers like teenagers, but as Reich put it, Most minimum wage workers aren't teenagers these
days. They're major breadwinners who need a higher minimum wage in order to keep their
families out of poverty. (Reich 1). As for those teenagers, they could still find some jobs
because more money would stimulate the economy and increase job growth if all goes well. On
the other hand, this increase will bring more people who are highly reliable and willing to be
committed to the job (Reich 1).
In conclusion, then the increase in minimum wage in Seattle will bring an increased
spending power for Americans living there, aid the lower class, and create stable jobs with
minimal damage to the employment rate. Seattle took a bold step in changing their economy
which could potentially destroy them. Fears of inflation and unemployment rise with this action,
but economists support the move and give reassuring facts that this will benefit the working
class. After all though, Seattle is just an experiment. James Pethokoukis, columnist at AEIdeas,
states, the Seattle decision, though, gives economists opportunity to put their fancy models

aside and instead study the real-world impact of an extreme policy action. The minimum wage
has been a pressing case lately that has spread through most of America and Seattle plays a
crucial part in figuring out what will become of the future economy of America.

Works Cited
Furchtgott-Roth, Diana. "Higher Minimum Wage Hurts Low-Skill Workers in the Long Run."
Room For Debate. The New York Times, 5 June 2014. Web. 1 Dec. 2014.
Hanauer, Nick. "Well-Paid Workers Strengthen Local Economies." Room For Debate. The New
York Times, 5 June 2014. Web. 1 Dec. 2014.
Pethokoukis, James. "Raising the Minimum Wage Won't Fight Poverty." Room For Debate. The
New York Times, 4 June 2014. Web. 1 Dec. 2014.
Reich, Robert. "A $15 Minimum Wage Can Help Overcome the New Low-Wage Economy."
Room For Debate. The New York Times, 5 June 2014. Web. 1 Dec. 2014.