The minimum wage is the lowest income that the least employee is supposed to earn as per the constitution (Cengiz et al. 2018) . It has a more significant implication on the economy of any given government. The United States of America is termed as the most stable state. According to statistics in 2019, which also applies until today, it shows that America's minimum wage is 7.25 USD every hour. This means that the least employee should be earning an income of not less than 7.25 USD every hour. Therefore, this study will discuss the implications of raising the federal wage in the States of America.
The United States ought to raise the federal wage since it will help strengthen the workers' purchasing power, providing a more significant boost to the state's general economy. Furthermore, the practice will help close the racial wealth gap that has been there ever since history. The current minimum wage value is lower than the one presented back in 1956 (Cengiz et al., 2018) . The increase of the minimum has both advantages and disadvantages. We will start by examining the benefits.
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First, it will help boost productivity; employees who are satisfied with the income are motivated to work extra smart. They will always produce decent living standards, meaning their income will cover all their cost of living. Besides, it promotes equality in earning. A rise in the minimum wage will minimize the inequality in earnings by providing the incentive to work. Similarly, the increase in minimum wage spurs the economy's overall growth since employees are given more money to spend. As a result, there is an increase in the business's demand and revenue (Komro et al., 2016) .
Contrary, there are also disadvantages of increment of the minimum wage. First, it causes an increase in the cost of living. This is demonstrated in the increased cost of living in certain areas, especially the urban areas where property owners will increase rents. Workers will be forced to expensively for housing. As a result, inflation may be experienced (Komro et al., 2016) . Besides, it increases the rate of outsourcing. This may occur because of the companies' decision to move their investment facilities to countries that have lower labor costs.
Similarly, it causes adverse effects on labor costs since it increases. The raising of the minimum wage increases the business labor cost through the laws of the minimum wage. When the government imposes a strict rule for pay increment, the companies decide to reduce the number of workers so that it can be able to reduce the cost of production. As a result, there will be an increase in the rate of unemployment. The low-wage employees will be negatively affected by the broader perspective since they will experience greater competition in the job market (Komro et al., 2016) .
In conclusion, an increase in the minimum wage will help alleviate the levels of poverty exhibited in the state. Since minimum income, earners will receive a salary that will aid in increasing their living standards. This will reduce poverty levels in the United States. Apart from the increased minimum wage, some other strategies that may help lower-income earners are increment in the earning income tax credit, programs of guaranteed basic income, the increment of the child's tax credit, and finally offering of training programs.
References
Cengiz, D., Dube, A., Lindner, A., & Zipperer, B. (2018). The effect of minimum wages on low-wage jobs: Evidence from the United States using a bunching estimator.
Komro, K. A., Livingston, M. D., Markowitz, S., & Wagenaar, A. C. (2016). The effect of an increased minimum wage on infant mortality and birth weight. American journal of public health , 106 (8), 1514-1516.
