Minimum wage in the United States of America in the state of Missouri in 2023 is currently up for debate. On one side, wages could increase to combat issues such as poverty, while on the other side wages could be held steady due to fears of job losses. Minimum wage can be an effective policy tool to reduce poverty, increase workers’ wages, and reduce socioeconomic inequality. However, an increase in wage can also have a detrimental effect on the labor market and the economy.
Starting in the summer of 2020, Missouri lawmakers proposed increasing the minimum wage from its current level to $6.50 per hour by the year 2023. If implemented, this would be an increase from the current Federal minimum wage of $7.25 per hour. This proposed increase aims to reduce poverty in the state of Missouri by 10 percent over the next ten years. It is also worth noting that overall poverty rates in the state have declined in recent years, and this proposed increase could further reduce poverty.
Ultimately, the effects of such an increase are still up to debate. Supporters of a higher minimum wage argue that it would reduce poverty, increase earnings for workers, and put more money in their pockets. Recent studies also suggest that an increase in minimum wage would not lead to higher unemployment as some might fear. Instead, the increased wages could lead to an increase in consumer spending, increasing growth in the economy as a whole. Moreover, such an increase would push wages closer to a “living wage” level, making it easier for people to support themselves and their families and improving their quality of life.
On the other hand, opponents of such an increase argue that increasing the minimum wage would cause businesses to reduce their staff or cut hours in order to offset the added costs. That said, most analyses suggest that this would be a marginal effect and that businesses are likely to adjust to increased costs over time. Additionally, there is also the potential for urban centers to experience negative effects, such as higher prices for goods and services, which would disproportionately harm lower-income households.
Ultimately, the debate over minimum wage will continue to be an important and contentious issue. While an increase to the current minimum wage in the state of Missouri in 2023 may reduce poverty, increase wages, and reduce inequality, it could also have a detrimental effect on businesses and urban centers. It is important to be aware of both sides of the issue before making a decision.
