The minimum wage now is far too low because it did not take into account inflation. In order for the minimum wage to be what is was in the late 20's, the wage would have to be around 20 dollars. The current wage is the amount needed to barely survive let alone live comfortably. The wage needs to be higher than even 10.10 to be fair but at least this would be a start.
The richest people in the country have captured almost all of the income growth over the past 10+ years, meaning that as CEOs and high management's wages and salaries keep rising, the average worker's pay hasn't been increased much in years. The result is people are slowly being squeezed to the point where they can't afford to put money back into the system. If you raise the minimum wage, people will have more money and will spend more, which will energize the economy.
A large dramatic increase of minimum wage would have disastrous effects on the United States as a whole. It is commonly known that for the average small business owner, for every penny they pay an employee, another penny goes to the State and Federal in the form of taxes and insurance. Say a person makes $8.00 an hour, their employer pays out $16.00 an hour. If the wage was instantly increased to such a number, over half of small business in America would have to shut their doors and the other half would decrease their work force. Such a decision would hit the American work force hard. Then in the long run, it would create a dramatic inflation as those who actually do have
work have a large ‘base’ disposable income; this would prompt manufacturers to charge more for their products. Minimum wage increases need to be made in small increments so that the back bone of America, the small business owner, doesn’t disappear entirely.