Demand & Supply , Examine the Argument in Favour & Against Minimum Wage Law in Uk

A study by John Schmitt of the Center for Economic and Policy Research explores the other possible reasons a modest increase in the minimum wage may not significantly impact employment levels. According to his study instead of hiring less workers the labor markets can respond in

Ira Knight, who is an author of article “Let’s Make the Minimum Wage a Living Wage”, expresses an opinion that increasing the minimum wage would help all struggling workers and at the same time improve U.S economy. On the other side, Janice Steele in her article “Keep the Minimum Wage Where It Is” argues that raising the minimum wage would have bad effects on workers, consumers and small businesses. Ira Knight’s article seems to be the stronger of the two positions because her arguments are based on several recent studies, and last but not least, she had a personal experience with the minimum wage job.

During all the history of minimum wages a bunch of studies were made to analyse the effects that the minimum wage changes can bring to employee’s life. In the oldest studies, the institutions that worked on it couldn’t find a significant change on the employees, job searches and employee’s behaviours. The only fact that was noticed was the

Those in favor of the minimum wage have argued, contrary to established economic theory, that the minimum wage can actually increase employment. An increase in income results in additional "money in the pockets" of workers which encourages greater spending in the economy. This in turn causes greater demand for goods and services, an increase in production, and the creation of new jobs. Additionally, a higher minimum wage is thought reduce government welfare spending. If workers earned more money, their dependence on and eligibility for government benefits would decrease. A recurring theme among pro minimum wage arguments is the issue of stagnant wages. Improvements in economic growth and productivity have exceeded increases in the minimum

It was mentioned the standard capitalist argument against a minimum wage has come under empirical attack lately and it must be said there is no consensus on the matter. The law of minimum wage interferes with the law of comparative advantage and monopolizes the affected labor markets in favor of the higher-skilled laborers whose labor is worth the higher wage. Some argue that the effect that the minimum wage is merely a huge, hidden tax paid by small minority. On other hand employers chose other methods than simple layoffs to offset the added cost of more expensive workforce. The theoretically include hiring fewer employees in the future not replacing all employees who resign, retire or are fired not making capital expenditures to improve their business raising price on the goods and services they offer and decreasing the number of hours worked per employee. The moral argument against minimum wage is based on the ideas of self-ownership and freedom, grounded in the ethical concrete of self-interest. One of the most interesting things I discovered while researching this topic was the historical nature of the argument. Some empirical studies appear to lend weight to the claim that these laws don’t cause unemployment, but they aren’t comprehensive enough to fully gauge the

Body 6 Main Point: Negative effect on minimum wage Topic Sentence: The negative effects of minimum-wage increases are overwhelmingly concentrated among the most helpless employees. Direct Quote/Paraphrase: “Research from economists at American University and Cornell University in 2008 showed the many state minimum-wage increases between 2003 and 2007 did nothing to reduce poverty rates.” Explanation/Analysis: Minimum-wage increases make it harder to find employment, particularly for the most vulnerable job-seekers. Business forced to eliminate jobs or reduce employee hours. This move effectively shuts low-wage and entry-level employees out of the labor market.

To begin, increasing minimum wage would increase economic activity. With an increase of $1.75 hourly, it has been predicted that there would be increase of aggregate household spending to $48 billion the next year (Aaronson). This increase would boost the United States GDP and lead to job growth, which proves that higher minimum wage equates to higher economic activity. In addition, it has also been found that raising minimum wage would would benefit

This article's main objective is to show that raising the minimum wage will not harm the economy, and will actually be good for business. This article gives examples of times in United States’ history where the minimum wage was raised, and actually gave a boost to the economy. One of the main points is that when there is a wage increase, people have more money, and are able to spend it more freely.

Minimum wage often hurts people it is intended to protect from the increase. There are many research papers that will show exactly how the minimum wage affects both the employer and the employee. The employer then has to take action when there is legislation that passes a higher minimum wage rate. I am against minimum wage for many reasons that I will explain in my essay.

The minimum wage is intended to protect workers and fight poverty. In the United States, the federal government sets the minimum wage at $7.25 per hour although many states set higher minimums. There is currently a movement to raise the federal minimum wage to $15 per hour. This movement is called the “Living Wage Movement” (Living Wage Resource Center, 2016) or the “Fight for $15” (Fortunato, 2016) and purports to address the problem of poverty in America.

Minimum wage is the minimum hourly wage an employer can pay an employee for work. Minimum wage helps people pay for things they use or need every day like food, clothes, and their homes. In some cases and for certain people the the federal minimum wage is not high enough for them to live on. In this paper I will argue that minimum wage should be increased to benefit people in a variety of ways, both socially and economically. Increasing minimum wage will also help cut down on government spending and pull people out of poverty.

The minimum wage debate has been a hot topic over the past year, especially with the Presidential Election. This is a divisive topic that people rarely agree upon. There are essentially two sides you can take when it comes to this argument. Either people are for minimum wage or are against raising, or even having, a minimum wage. Proponents of the minimum wage are typically politicians who are lobbying for the vote of the people who feel that a minimum wage is critical to their wellbeing, and those who sympathize with people who earn “minimum wage”. Minimum wage is destroying America’s free market economy and someone needs to take action and find a better solution to this problem. Without anyone acting on this problem now, it can potentially be worse in the long run. Raising the minimum wage in the United States will do more harm than good to society because of the long-term effects.

Proponents of raising the minimum wage claim that if the minimum wage was raised, then many economic and social problems would be alleviated. This contention is at odds both with economic principles and years of creditable research. The effect of raising or even having a minimum wage has been studied extensively and the majority of studies have proven that raising a minimum wage does not have the desired effect. Both micro and macroeconomic forces affect the results of raising the minimum wage. The secondary effects of raising the minimum wage are bad both for

Moving along the list of advantages, increasing the minimum wage will also increase the amount of money workers have, which, in turn, will inspire them to increase their consumption and pump their extra money into the economy. If workers have more money going into their pockets from increased wages, the income effect comes into play, and provides an incentive to go out into the market and buy goods and services. In an article printed by The New York Times, it was also pointed out that raising the minimum wage would decrease labor turnover. This is because if workers are paid more, they have less incentive to leave their current job and seek a higher paying job.

The belief that a company should hire and compensate people situated on their worth is not only good for business, but also for the employee, since being able to freely trade value for value is in the best interest of an employee. In an economy where minimum wage is not enforced, employees and employers could negotiate without government imposed wages, which could potentially make unskilled workers more attractive to employers. This would create jobs for young people, those