For the past 15 years, the federal minimum wage has remained stagnant at $7.25 per hour, marking a significant milestone in the struggle of working families to make ends meet. While various states have taken the initiative to enact higher minimum hourly pay rates, there are still 20 states where wages remain no higher than the federal minimum level. This lack of movement at the federal level has left many workers feeling the financial strain of trying to survive on wages that have not kept up with the cost of living.

Democratic presidential nominee Kamala Harris recently took a stand on the issue, vowing to fight for working families by raising the minimum wage and eliminating taxes on tips for service and hospitality workers. However, the specifics of how much she plans to increase the minimum wage remain unclear. While some states have already raised their minimum wage to at least $15 per hour, the federal government has yet to follow suit, leaving many low-wage workers struggling to get by.

One of the main arguments against raising the federal minimum wage is the concern that it could harm small businesses. Former President Donald Trump voiced his reservations about the impact of increasing wages on small businesses, pointing to the possibility of increased firing of employees. This sentiment reflects the divide among business owners, with a CNBC survey showing that while a majority of small business owners support raising the minimum wage, many are concerned about the financial strain it could place on their operations.

Despite the concerns surrounding the potential negative impact on small businesses, proponents of raising the minimum wage argue that it could strengthen consumer buying power and boost economic growth. By increasing the incomes of low-wage workers, more money would flow back into the economy as workers are more likely to spend their higher wages. This, in turn, could benefit businesses by increasing demand for goods and services.

Economists and advocates have outlined the benefits of raising the federal minimum wage, citing the need to address the decline in purchasing power that has occurred over the past 15 years. By increasing the minimum wage to $15 per hour, it is estimated that about 20 million workers would see an increase in their incomes. In addition, higher wages can make it easier for businesses to attract and retain workers, ultimately leading to a more stable and productive workforce.

While some companies have taken the initiative to set their own higher minimum pay thresholds in response to market conditions, there is a growing call for a nationwide increase in the federal minimum wage. Advocates argue that raising the minimum wage is not only a matter of economic justice but also makes good business sense. As the debate continues at both the state and federal levels, the focus remains on finding a balance that supports both workers and businesses in achieving financial stability and growth.

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