Small Businesses in America And Stance on Minimum Wage Policy

Small businesses are advocates of the minimum wage increase policy because of the public anger over income inequality and workers facing greater economic challenges. Account for growing inflation a worker is worse off now than he/she was in 1968 and was being paid $1.60 per hour. . Small businesses are of the view that a people who earn more money will have more disposable income and will spend more which will in essence help the circulation of money (Klein & Leiber, 2013).

            Wal-Mart which is the largest private employer in America said that it is considering support the federal minimum in oppositions to businesses and industrial groups who are against it. Wal-Mart is considering the cost of raised wages against the possibility of workers having more money to spend on buying consumables from their organization. This would in essence mean that the 140 million who shop at Wal-Mart every week would have more money to spend. 

            Along with the NRF, the Chamber of Commerce does not support in increase in the federal minimum wage. Businesses are looking for decisions so that they can what rules are applicable to their organization so that they can manage their affairs accordingly.

Labor Unions

Labor Unions wholeheartedly support President Obama’s imitative for a wage increase because some unions and their members directly benefit from minimum wage increases—even when not a single union member actually makes the minimum wage. The Labor Department data indicates that many unions in the service industry advocate for a raise in the minimum wage. However, the United Food and Commercial Workers International Union also say that it also supports an increase in the minimum wage. This would also increase the wages of union members.