The Federal Minimum wage is one of the crucial issues in defining income rates of the U.S. workers. It determines the rates that the companies should pay its workers. However, it varies across different states. Minimum wage is the amount of payment that the employers pay to the employees and therefore, its changes create different debates with both supporting and disputing views.

The most recent changes include the 2009 debates where President Obama proposed an increase of the minimum rates. However, the last noted differences on the federal minimum rates were observed in 2009 when the government raised the rates to about $ 7.25 for every hour. The changes then raised different views across both state and federal level. For example, Columbia state has been at the forefront of increasing the rates thus having the highest standards in the US. On the other hand, the cities have attempted to alter such rates. However various legislations have been assets requiring them to adhere to the standards outlined through the full state minimums. Therefore, the debates on whether the rates should be increased or decreased have had significant conflicts especially for those states with the lower rates.

An increase in the minimum wages is essential in a society where the prices of goods keep rising and other economic aspects. Besides the salary should be increased especially in states with the highest levels of low-income individuals. However, the opposition to the view occurred since it caused a burden to the employers. A similar effect would be designed to the small companies thus hindering growth. Having increased payment rates would mean that the companies would employ a few employees thus reducing employment rates thus resulting in slower economic growth rates.

Furthermore increasing the minimum wages would raise the standards of living, thus creating a case of increased inflation rates. And this would similarly cause increased poverty levels.

Increasing minimum wages is essential since many studies have shown that the process would have a low impact on the unemployment rates. It would increase other job vacancies. Besides, it would reduce significant social disparities such as those linked to racial-based income inequalities. Also, the government would have an opportunity to reduce the expenses allocated to the poor since workers would have a chance to access more income rates. Therefore, it is one of the steps that would address the significant,  particular problems faced by the countries.

It is evident that the rates would allow more graduates to apply for the jobs. Through the interventions of the government more opportunities would be provided for new employment. Consequently, more taxes would be achieved thus, boosting the country’s economic growth. The increase further contributes to increased revenues due to payroll taxes and other social agencies such as social security.

Raising the rates would have a positive impact on the employees. An increase in living standards would occur thus more opportunities provided for the government to explore new rates of taxing its citizens. The state ensures that the government adjusts to the new wage policies thus creating new opportunities for addressing social problems and improving the workers come.

On the other hand, the impact on the employers would mean that they would access an opportunity to invest in automated processes and increase the use of machinery thus reducing human resources. The change thus results in higher rates of unemployment. Similarly, the jobs that would be provided would, and the employers would decrease the entry levels jobs needed for the graduates to begin their career. Besides those companies with fixed budgets would require the employers to conduct the layoff process due to financial challenges of handling the problem.

However, for some employers, this would be an opportunity to explore new ways of adjusting to new rates as well as maintaining the balance of paying workers,  retaining them and promoting them usually. Such a process often requires diversification of jobs and creativity in offsetting the higher labor costs. Besides, many states have set a  higher minimum wage higher than the federal minimum salaries typically to address different challenges with the standards of living. Additionally, the employers on such states such as Columbia are doing well especially in employing more workers and retaining the required rates. Therefore even if the increase would negatively affect most of the employees the likelihood of overcoming the challenge and retaining the average cost of labor is high. The step reduces the turnover rates thus reducing the cost customarily incurred during the employee turn-over.

Higher wages in cases the rates of taxes. When the workers have an increases income they have less reliance on the government thus reducing rates of aid. The step would create more revenue thus providing the government with an opportunity of creating other job opportunities. The process would increase the household spending thus boosting the GDP. It gives an opportunity for the overall income growth to grow. Therefore, the increase would probably have a positive impact on the economy.

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