Understanding How Minimum Wage Affects Spending and Debt

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The federal minimum wage has remained steady since 2009 at a rate of approximately $7.25. State and local laws, however, have ensured that workers from coast-to-coast have been able to meet the constant rise in the standard of living in their areas by raising the minimum wage in order to ensure individual needs can be met. 

Minimum Wage

Yet, organized labor and anti-poverty groups continue to push for ever more regulations at the federal level. Even though the idea remains popular with the general populous, researchers evaluating the benefits of such a move have found clear racial and partisan differences when it comes to support. 

Like throwing a stone into a pond, there is a ripple effect that cannot be ignored. Here are a few facts to keep in mind when deciding whether or not you should support the proposed change in the minimum wage.

Spending and the Minimum Wage

A research project based on a Consumer Expenditure Survey found that following a year when the minimum wage was raised by $1, spending rose, on average, $700 per quarter in homes where minimum wage workers lived. 




The extra money was frequently spent on durable goods especially on new trucks and cars. Unfortunately, such purchases were often financed purchases. When evaluating spending response data, two facts comes to light. 

First, the total spending increase primarily happens during the first quarter after the minimum wage is increased rather than before despite the fact laws are usually passed up to 18 months in advance. 

Secondly, spending remains at that level before beginning a slow decline to pre-hike levels but only after many months. In other words, spending increases more than earnings immediately after a hike.

Debt and the Minimum Wage

The same aforementioned survey found that household debt that included autos, home equity and credit card debt rose during the first year after a minimum wage increase in homes where the total income was below $20,000 per year. 

Those households likely included the most minimum wage workers. It was also discovered that in higher-income households, the same did not hold true. In fact, there was very little change when it came to spending that resulted in debt. 

Just as with spending declining months after a wage hike has been instituted, so does debt. In fact, by the end of the second year it declines significantly. What the pattern proves is that much of the early consumption response is, in fact, debt-financed spending.

Aggregate Spending and the Sunshine Act

Although the research study mentioned above provided valuable insight into consumer spending-debt response to minimum wage increases, it was limited to subject reports by survey which are limited and, depending on the subject, sometimes even suspect. 

In response, legislation has been proposed in the form of the Aggregate Spending and the Sunshine Act which would require individual business domains to report transactions related to research and development, medical affairs, manufacturing, consumer spending and other types of transactions that must be taken into consideration when evaluating the true impact of raising the minimum wage.

In order for the government to make an informed decision on the issue of whether or not to raise the minimum wage, a robust master customer data file is required. Although the Consumer Expenditure Survey has been insightful, it is lacking. 

It is anticipated that it will take the collection of huge amounts of transactional data to determine the true impact of wage changes. It will become the linchpin in new compliance reporting designed to bring greater transparency to financial transactions and ensure that minimum wage workers are not left behind.

Loving Care For The Elderly

Loving Care For The Elderly Home health care is a good finance option, and it is ideal for elders and the sick that no longer need hospital care to finish recuperating. This service offers numerous advantageous to elders who prefer to be in the comfort of their home and in familiar surroundings rather than a long-term care center. In-home care providers make it possible for both those recuperating and the sick to stay at home and still carry on with their life in the way that they want. Family members can be with the patients at all times or visit them whenever they want. 

The best In-home care workers do not compromise on the care and treatment they provide. They provide a highly flexible, personalized service. The patients and their families' best interests are given top priority, and all efforts are put forth to give the best clinical, pharmaceutical and healthcare services. The well-trained providers give high quality, compassionate service and take care of all a patient's needs so that they live comfortably. They work in close coordination with the existing medical services and related parameters. 

These services provide freedom, dignity and a sense of belonging. Elders who prefer staying at home and being under the care of a home worker are near their loved and dear ones instead of being in a strange hospital or care facility. A home atmosphere, love and care enhance the healing process. 

Health care includes a range of services. These services include: 

• Physical therapy 
• Speech therapy 
• Dietary Management 
• Medication and injection 
• Observations and assessments 
• Psychiatric care 
• Occupational therapy 
• Intravenous medication therapy
• Chemotherapy 
• Complicated wound care 
• Infusion therapy 

Benefits of Home Care 

Home care provides more advantages than being in a residential health care facility or a nursing home. A health care worker ensures that the elderly person receives nutritious meals, timely medication, rest and adequate supervision. 

Healing happens more quickly in a relaxed environment like one's home. Also, the risk of infection is decreased by leaps and bounds. Health care workers who come to one's home enhance recuperation and recovery, and they are also able to provide better personal hygiene. 

This type of care gives patients more control over their atmosphere. The patient can decide on his daily schedule and have the freedom to do things he has always done in his home. 

A home care aide provides companionship. Family members who have to be away from home due to work and other commitments can leave their homes safe in the knowledge that their loved ones are taken care of. 

Cost Benefits 

Nursing homes, semi private rooms and assisted living in care facilities are alternatives to hiring a health professional to come to your home, but they are more costly. A vast majority of patients are opting to be treated at home under the care of home health care workers than in an alien environment for both comfort and finance benefits. However, these facilities are less expensive than what one would have to spend on hospital service or at long term care facilities. Home care health services also reduce readmission finance. The hourly rates vary from state to state and city to city. Rates can vary from $25 to $50. 

Medicare will finance home health care if certain conditions are met. If you are home bound and need skilled nursing care, then you will be eligible for Medicare finance. There are numerous agencies catering to the needs of elders. They provide health care to the elderly who need constant medical care and assistance after being discharged from the hospital. It is important to get the services of an efficient and reliable home health aide. Referrals from friends and family are the best way to find honest and reliable care providers who your finance plan can handle. Online reviews and testimonials can also help you narrow in on the best agencies to contact. 

Author Bio 

Sarah Daren is a writer who creates informative articles relating to the field of health. In this article, she explains a few benefits associate with home health care and aims to promote programs such as a family caregiver program Colorado.