The left-wing base in America continues to argue that increasing the minimum wage will work against poverty. Conservatives, however, have pointed out the documented means by which the free market adjusts to minimum wage increases.
When the minimum wage increases, businesses have no choice but to cut their expenses; therefore, workers receive fewer hours and many employees suffer layoffs. Furthermore, minimum wage increases lead to rises in prices for goods and services.
Conservatives have hence suggested modifications to the tax code as a more productive means of helping workers and reducing poverty.
The American Rescue Plan
On Friday, the Democrat-controlled House of Representatives passed the American Rescue Plan. Much to the disappointment of many left-wing voters, the $1.9 trillion spending package does not contain a federal minimum wage increase.
Interestingly enough, Biden himself has acknowledged the difficulties that will come with passing legislation of this nature. Certain moderate Democrats in Congress, such as Sen. Joe Manchin of West Virginia, remain opposed to a $15 federal minimum wage.
