The number of Americans living below the federal poverty level is growing and so is the number of Americans turning to welfare or public assistance benefits. The reason for this phenomenon is that a large number of the post-recession job opportunities are low skill, low wage jobs. Minimum wage was enacted following the Great Depression in an effort to protect the American worker. In the 1960’s, the minimum wage was $1.60 an hour. Experts state that if the minimum wage had increased with the rate of inflation, the rate would be $10.70 per hour today. Unfortunately, that is not the case (DOL News Brief, 2013). Today, the rate is a measly $7.25 per hour. If an American works a full-time, 40 hour a week job, he or she will earn $15,080 gross annual salary. This is before taxes and other deductions are subtracted.

The welfare system is made up of 126 separate programs funded by the government including cash, housing, utility, food, and healthcare assistance. While recipients of welfare benefits typically do not receive benefits from all of the programs, it is not uncommon for recipients to receive benefits from many different programs at the same time. All of these benefits are tax free and when all the benefits received are tallied, there is often a combined benefit that exceeds the federal poverty level. Those collecting welfare benefits earned more than the minimum wage worker in 35 of the 50 states. In fact, in 13 states, combined welfare benefits earned an average of $15 per hour. That’s more than double minimum wage (Tanner & Hughes, 2013).

Raising the minimum wage to a figure that places low wage earner above those collecting welfare is warranted. Opponents of raising the minimum wage believe that it will primarily impact teenage workers. However, the reality is that only 12% of low wage earners are teenagers. In fact, the average age of low wage earners is 35 years old and women account for 56% of them. Earning minimum wage is not enough to bring families above the poverty level (Larsen, 2014).

Opponents also believe that raising the minimum wage will force companies to lay-off workers and/or to hire fewer workers. However, low wage workers spend a larger portion of their income as compared to high wage earners putting more money back into the economy. Increasing the minimum wage increases the earning and spending power of millions of Americans (Larsen, 2014). The more products that are purchased, the more products need to be made, leading to more people needed to manufacture, transport, and sell the products. Increasing the minimum wage has the potential to increase jobs, not decrease them. It becomes a win-win for everyone in society.

To reduce the problem and the number of Americans who rely on welfare benefits, the minimum wage needs to be increased. President Obama has committed to raising the minimum wage for federal worker to $10.10 per hour (Obama's State of the Union Address Transcript, 2014). The Fair Minimum Wage Act is also advocating raising the minimum wage for everyone to $10.10 by 2015 (Larsen, 2014).

Companies also share in the responsibility to correct the problem of low wage workers earning less than those collecting welfare benefits. According to raisetheminimumwage.com, wages for low skilled, low wage workers has remained stagnant despite companies bouncing back following the recent recession. CEOs on average are earning $4,517 per hour while many of their workers are earning minimum wage; $7.25 per hour. Larsen also states that the most of the income increases between 2009 and 2012 went to the top 1% of the earners. That top 1% took home income increases of 95% leaving just 5% for everyone else.

Investments in education, small business growth, and new markets to sell American made products will also be keys to improving the future economy and job opportunities (Larsen, 2014).

Americans can impact this legislation by writing to your local and state representatives requesting the vote for raising the minimum wage. An online petition can be signed to show your support for this legislation.