Benefits Of Raising The Wage In Pdx

One of the biggest negative effects of raising the minimum wage is that it would severely hurt small businesses. If the minimum wage were to be raised it would force the owners to pay their employees more money that they might not have. In order to pay the employees the newly raised minimum wage they are gonna have to raise the prices which will lead to the loss of consumers, and might eventually lead to the store going out of business. According to a Gallup poll done in 2013, 60 percent of small-business owners said that raising minimum wage will “hurt small business owners. James Richardson, MBA, Vice President of the fast food chain White Castle, said that the company would be forced to close

Several examples of data and statistics from studies elucidate the harmful effects on small businesses and in addition the compelling of companies to close as a result of the increase of minimum wage. According to a Gallup poll that took place in 2013, 60% of small business owners agreed that an increase in minimum wage would be harmful to their small businesses (Should the Federal). Small businesses do not have the money supply that chain corporations do. Naturally, if they had to pay their employees more, it would be harmful to them. Several Walmart stores have closed and Walmart stores that were yet to open have closed as a result of an increase in the minimum wage (Should the Federal). An increase in the minimum wage must even have harmful effects on larger businesses. They obviously employ several more people than a small business, so they have to pay each worker more resulting in a net loss of a lot of money from the chain. Additionally, in several work places, if the minimum wage were increased, the wages of those who hold higher positions would have to be increased. For example, if the amount of money that the minimum wage dishwasher or table busser in a restaurant increased, then the chef and manager would need to be paid accordingly. If the minimum wage were to increase, it would be detrimental to both small and large businesses.

Raising the minimum wage is a very important public policy issue. Raising the minimum wage is a responsible policy that is supported by research and demanded by the American public. Each day, minimum wage workers across the country struggle to make ends meet and provide a decent life for their kids (Scott & Perez, 2016). Raising the minimum wage is a controversial issue, many believe that raising the minimum wage would only provide low wage workers more money to spend. However, the benefits can be endless for low wage workers. If minimum wage is increased across the United States it would afford the people effected more opportunities for financial freedom. Increasing the minimum wage would raise the standard of living for low wage workers, allow families to be removed from poverty, allow for government welfare spending to be reduced and lastly additional income being spent would positively affect the economy.

Inflation has also been one of the signature conflicts of raising the minimum wage. In the past 5 to six years, the inflations levels have been at 1.5 percent (CNN money). By raising the minimum wage, should not increase inflation but help it maintain its current state. When adjusted for inflation, the current federal minimum wage would need to be more than $8 per hour to equal its purchasing power of the early 1980s and more nearly $11 per hour to equal its buying power of the late 1960s (U.S dept. Labor). That 's why President Obama is urging Congress to increase the federal minimum wage and give low-wage workers a much-needed boost.

The main reason raising the minimum wage radically would kill the economy is the pressure it would place on small businesses. According to TheWashingtonPost.com article, Small Businesses are the backbone of the economy. They also cited that many studies from the U.S. Small Business Administration show small firms employ just

One concern that is commonly mentioned during the debate on raising minimum wage is the loss of employment as a result of the legislation. A common fear is that small business owners will not be able to pay their employees and may need to lay off workers In order to keep the business running.

After the protest in New York City, the issue of raising the minimum wage has come up once again. Seattle is spearheading this cause with a proposal of raising the minimum wage to $15 per hour. This will help minimum wage workers a great deal by increasing their income. However, there are concern that this move could hurt certain businesses, which can lead to higher unemployment and contraction of the economy. The ethical issue surfaced as this will benefit some at the expense of other.

Opponents of a minimum wage increase feel that as pressure mounts on employers to raise wages higher than they are comfortable with or can afford, especially small business owners, who must raise their prices, instate a cut in pay or hours to pay the higher wages, which may in turn lead to less new hires, or ultimately the end of their business which could damage the economy. Being able to remain competitive against large retailers such as Walmart and Target becomes increasingly difficult and over the years has led many to close up

The same is true for Florida, which reviews their minimum wage in accordance to a cost- of- living formula (Moody, 2014). Both states have proven that there is a direct correlation between having enough money to survive and the cost- of- living. CEO of the Kansas Restaurant and Hospitality Association, Adam Mills, states that “If the minimum wage goes up, then something else has to give… It’s a combination of higher prices and fewer people working” (Voorhis, 2013). Furthermore, Kansas, Washington, and Florida aren’t the only states seeing these trends. One writer from Pittsburgh named Jack Markowitz says “A certain side- effect is the cost of doing business: pressure on prices. Consumers pay more as workers earn more” (Markowitz, 2009). The effects of the correlation between minimum wage and cost- of- living are not just visible to government officials, but to writers and consumers alike. Along with paying more as prices spike, the value of the dollar goes down. The more money the government puts into circulation, the less value it has- just like anything else. David Cooper claims that at $7.25 an hour, minimum wage has declined by more than 26% since 1968 (Lester, 2012). If the value of the dollar keeps declining, hiking the

As for small businesses being harmed by an increase in minimum wage, Batra proves that a rise in minimum wage, as long as it is not faster than the rise in prices, will not adversely affect the businesses’ profits. He says that a business’s profit equals the revenue, less wage costs and all other costs. Batra offers an example with a popular fast-food franchise:

Imagine standing over a scorching grill for hours, taking care of the elderly, both lifting and transporting heavy loads, basically doing back breaking work; only to be making less than $8 and hour. That is the reality for millions of people in the work force who are earning minimum wage. Whether or not minimum wage should be raised has been a question many people have been discussing for years and has become quite controversial. Those opposed to increased minimum wages would argue that a minimum wage salary is already sufficient enough, or in some cases even “too high”. In spite of the opposing sides, it is almost certain that a rise in minimum wage will either positively or negatively affect several aspects of the country. For one, an increase in minimum wage could result in an economic shift. Furthermore, the current poverty level within the country, with the help of a higher minimum wage, would either decrease or as a result. Thirdly, a change in poverty levels caused by a higher minimum wage would ultimately change the amount of government spending and those who receive it. Minimum wage being raised would definitely be impactful not only the people receiving those minimum waged salaries, but also the economy, their families, and even the government funding.

Recently, there have been many measured that have been instituted to help increase minimum wage bill. Minimum wage bill is being increased in most sectors in the country and it something that no employer can avoid. In cities such as San Francisco, Seattle and Los Angeles there are bills that have been passed to increase the minimum wage bill $15 per hour. Also, New York has proposed a bill which is likely to increase its minimum wage bill to $15 per hour and there is a bill which is before the congress to increase federal minimum wage to $12 per hour by the year 2020. According to the article the three reasons that are supposed to make an employer increase the salary include: a) Recruiting and retaining talent According to 2015 Jobvite Job

There have been many questions raised about increasing the minimum wage in the United States but not many people have the knowledge to understand how their lives will be affected. People are more concerned about increasing the minimum wage into living wage. Everyone should be educated and have concerns about the politics of raising minimum wage to a living wage.

Raising the pay of one’s workers is proven to increase productivity in the workplace: Worker productivity increased 104% while the minimum wage rose 101% between 1947 and 1973 (Henderson). Common sense also plays a role here. If you were being paid a penny an hour when you really deserve a quarter an hour, would you work your hardest? Would you begin your work enthusiastically at full-throttle? No, you wouldn’t, and the second you saw a better opportunity at another place of employment, you would jump to it. Why should you feel loyal towards a job or company which does not pay you enough to live? The federal minimum wage should be raised in order to ensure the effort and loyalty of workers.

There are a few businesses already adjusting the minimum wage for their workers. IKEA, a huge company that is around the world, is raising its minimum wage for its workers to $11.87 per hour. IKEA, however, has taken a slightly different approach than other companies have. Rather than setting a single minimum standard across all of its stores in the United States, Ikea has been tying its workers' pay to a "living wage," or the hourly pay workers need to earn in each local area to afford basic