Abolishing Minimum Wage

1808 Words Feb 21st, 2011 8 Pages
Abolishing the Minimum Wage Many Americans think of the minimum wage as a means of raising the income of the working people. However, the minimum wage is not the best way to combat poverty. In fact, the minimum wage does more harm than good. The list of its negative effects is a long one: it causes unemployment; it prevents unskilled workers from getting the on-the-job training they need; it encourages teenagers to drop out of school; it promotes the hiring of illegal aliens; and it increases welfare dependency. For all of these reasons, the minimum wage should be eliminated. To evaluate the minimum wage, we must first understand why it was originally created and what its historical effects have been. The minimum w age was introduced in …show more content…
Several studies have shown in addition that “increases in the minimum wage lead employers to cut back on both work hours and training” (Bartlett, 1996) and that any further benefits that are gained by an increased minimum wage are “short lived” (Mishel, Bernstein, & Schmitt, 1998, p.3). Employers may, for example, try to recoup a loss in profits by reducing benefits such as health care and pension (Reynolds, 2004). Another study conducted by economist David Neumark of Michigan State University in 1995 shows that raising the minimum wage negatively affects school attendance among teenagers. The study reports that teenagers are enticed to leave school early by the higher wagers seemingly made available to them by the minimum wage. Many of these teenagers drop out of school only to find that no permanent jobs are available due to the increase in unemployment caused by the minimum wage. According to policy analyst Bruce Bartlett (1999), in “1967, 1968, 1974, 1975, 1976, and annually from 1978 through 1981 ......a 10-percent rise in the minimum wage” consistently reduced the employment of teenagers 1% and 3%. Even worse is the fact that when teens cannot find legitimate jobs, poverty may cause them to resort to crime. Studies by Ohio State University and the University of California in 1977 have flatly concluded that “increases

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