Should the current minimum wage ($7

.pdf

School

South Texas College *

*We aren’t endorsed by this school

Course

MISC

Subject

Economics

Date

Feb 20, 2024

Type

pdf

Pages

Uploaded by CaptainDeerPerson631

Lizbeth Hernandez Consuelo Hinojosa Guerra ENLG-1301 12/1/2023 Should the current minimum wage ($7.25 per hour) be raised to a “livable” wage ($15 per hour)? Analyze The heated debate over whether or not to raise the current federal minimum wage of $7.25 per hour to a 'livable' wage has become a much-discussed topic in recent years. Supporters of the wage increase argue that the current wage is insufficient to provide workers with a decent standard of living and does not keep up with inflation. Conversely, opponents of the raise assert that it would have a negative impact on businesses and could result in job losses. Jennifer L. Romich, in her article, 'Is Raising the Minimum Wage a Good Idea? Evidence and Importance for Social Work' examines the issue from an economic standpoint. When discussing raising the minimum wage, it is essential to consider its economic impact. Supporters of the idea contend that increasing wages would spark consumer spending, resulting in more economic growth. These supporters argue that with more disposable income, workers would be able to buy more goods and services, driving up sales and profits for businesses. Moreover, they claim that raising wages could decrease income imbalance by assigning a fairer portion of national income to low-wage employees. Opponents of increasing the minimum wage contend that it could lead to unfavorable outcomes for businesses and the economy overall. They suggest that employers may have to reduce staff or terminate employees due to the higher labor costs. Smaller businesses may not be able to pay for the additional expenses without increasing the price of their products or letting go of workers. We will analyze Romich Jennifer L's claim that raising the minimum wage is a good economic decision by assessing the evidence she provides and considering its consequences for social workers who are focused on improving the quality of life for those affected by insufficient wages. In her article 'Is Raising the Minimum Wage a Good Idea? Evidence and Implication for Social Work', Jennifer L. Romich provides an insightful analysis of the economic consequences of setting the minimum wage to a 'livable' wage, a topic that is highly debated and presumed upon. According to Romich, the implications of increasing the minimum wage can be both beneficial and harmful to the economy. Supporters of raising the minimum wage argue that it will encourage economic growth because the increased consumer spending power of low-wage workers will cause a ripple effect throughout the economy. When workers earn more, they are likely to increase their spending

Lizbeth Hernandez Consuelo Hinojosa Guerra ENLG-1301 12/1/2023 on goods and services, which in turn will lead to increased production and job creation as businesses try to meet the increased demand. Raising the minimum wage to $15 per hour could lead to a reduction in income imbalance, as well as decreased poverty rates and improved living standards for those at the bottom of the income distribution. Currently, the minimum wage of $7.25 per hour does not provide sufficient income for a livable wage in many parts of the country. By increasing the minimum wage, low-wage workers would have greater financial stability and less need for government assistance programs. Critics argue that raising the minimum wage could have a negative effect on employment levels. It is suggested that businesses, especially small ones with limited profit margins, may not be able to cope with the increased labor costs. Therefore, they may be compelled to reduce their workforce or reduce the hours of existing workers to stay solvent. Such potential job losses may counterbalance any gains made by those who receive higher wages. Romich's findings suggest that although increasing the minimum wage to a livable wage can offer potential benefits, there are also legitimate worries about its possible negative economic effects. It is important that policymakers take into account these implications and find a middle ground that guarantees both fair wages for employees and sustainable economic development. In her article, 'Is Raising the Minimum Wage a Good Idea? Evidence and Implication for Social Work,' Romich Jennifer L. provides insightful analysis into the potential economic effects of raising the minimum wage to a 'livable' wage of $15 per hour. Her research and evidence suggest that while there may be positive outcomes, there could also be negative implications. To conclude, further research is necessary to properly assess the effects of such a major change. Raising the minimum wage could be beneficial for addressing income inequality and increasing the living standards of low-wage workers. Nonetheless, it is essential to analyze its possible economic implications for different parties. Also, by implementing supplementary measures such as tax incentives or government subsidies, any negative effects on businesses can be minimized while continuing to promote social progress. Romich Jennifer L. suggests that to achieve the best results, the increase of the minimum wage needs to be approached with caution and that both the potential benefits and potential difficulties that it could bring to the economic system should be considered.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version