Formal business memo Article Example | Topics and Well Written Essays - 500 words

Formal business memo - Article Example When the cost of living surges, the minimum wage should also rise. This is because workers face significant strain while earning figures that do not consider inflation. In the end, the quality of life diminishes as a large number of families are forced into poverty. It is essential for workers to feel that the state takes care of their welfare. Raising the minimum wage is one of the principal ways in which the state intervenes for workers who are majorly defenseless against businesspersons. It is essential to note that the current minimum hour wage of 7.25 per hour does not care of taxes that every employee faces. At the end of the day, most workers probably earn $ 4 per hour after taxes. This act will also favor the business community since higher pay raises the morale of workers. A workforce with increased morale easily manifests higher productivity. Besides, the city should target increased expenditure towards rising out of the consequences of the recession. This is only possible if workers’ purchasing power increases. When the city raises the minimum wage, the action will affect more than 400,000 workers who make a third of Chicago’s workforce (CBS Chicago 1). This figure considers casual workers in areas such as hotels. Hotel workers in Los Angeles recently won a $ 15.37 minimum wage policy. This happened after unions and right groups formed advocacy groups for the same. This is the highest minimum wage figure among all the states. It is crucial to highlight that hotel workers were the originators of the idea. This suggests that the minimum wage issue mostly affects the casual workers. Casual workers are predisposed to exploitation by business owners because such jobs do not require special skills. Consequently, the minimum wage is a serious concern for SME’s and the informal sector such as hotels. A higher minimum wage increases the cost of business. A