Emage Wages : Advantages And Benefits Of The Minimum Wage

To begin, there is an extensive debate over whether if the U.S were to raise minimum wage, could it really help the working poor of low income families. Nancy Cook, in her article from the National Journal, “Why a Minimum-Wage Hike Can’t Help the Poor”, she points out that two thirds of around 100 surveys from 2007 had a negative effect and that it does more for the middle class than the lower one. (p.14). So, therefore, from her

According to the American Enterprise Institute, it is stated by president Obama that increasing the minimum wage: “would alleviate poverty”. The president is certainly correct, this wouldn't help everyone. As the information given: only 11.3% of the people will get beneficiated by this raise. Why this? People who don’t work are the ones in poverty; and because firing some its workers, there will be more poverty than there was before. And if the case is that a company keeps their employees… the people

The first reason why the Untied States should increase minimum wage is to reduce poverty rates. An anti-poverty tool is simply whether employers would employ fewer workers if they had to pay higher wages. Which I believe is wrong because since they would be increasing minimum wage then the employers will be making more money, which then opens up more employment options. In addition, if employers are paying more, they will want to hire more experienced or more educated workers. But, this is why we would increase minimum wage so that more people can afford to go to school and finish their education so that they will be able to receive those jobs. Also, between 1998 and 2004 retail employment rose more than three times faster in states with minimum wage above the

In the United States alone, the amount of people in poverty is 14.5%. That equates to 45.3 million people in 2013. In a country like America, one of the world’s superpowers, it’s embarrassing to admit. But the main issue is to fix issues like these with the minimum wage and welfare. The minimum wage applies to workers who got a job whether because they were in school or because they had not gone to college and had no other option. Most of the country lives off as minimum wage workers as only 1% of the world’s population has a college degree. Minimum wage needs to be adjusted to modern inflation. But the minimum wage allegedly does not affect poverty at all says a large demographic and does not need to be adjusted. The minimum wage makes up a lot of the country and should be adjusted or modified to today’s standard of living.

Minimum wage, designed to lower the amount of people below the poverty line, doesn’t deliver the promises bundled along. Raising the minimum wage depends on the idea that mass majority of people who are living under the poverty line depend solely on the revenue obtained

How does an employer decide how much to pay his employees? Logically, he 'd want to reduce overhead costs by paying them as little as possible. Minimum wage laws exist to protect workers from being exploited by wages too low to live on, as well as in an effort to reduce poverty in society and it 's far-reaching consequences. Many states have laws that raise the minimum wage at the same rate as inflation, but the federal government does not (Whitaker 634). The value of a new minimum wage begins to fall from the moment it is set. Because the costs of living are always rising, it is a hardship on those who must rely on wages which constantly degrade in value to meet these costs. The federal minimum wage, $7.25, has become too little for anyone to live on, especially without public assistance. The federal minimum wage has lagged further and further behind inflation over the last forty years (Covert). The minimum wage should be raised to a living wage for the entire country and set to index with inflation. As the cost of living increases, the wages paid to employees to cover that cost also needs to be regulated to increase in order to address income inequality and bureaucratic oversight; additionally, recent analysis shows that there would likely be modest benefits to the economy in the event of a modest federal minimum wage hike.

Almost 3.3 out of 76 million workers in the US receive minimum wage (Source: BLS reports). Activists for raising the minimum wage claim that the federal minimum wage of $7.25 is the reason they are living in poverty, and that the wage must be raised for a better standard of living. Many people who take on minimum wage jobs are young and work in companies that don’t carry much prestige; however, they still take pride in their work and demand higher pay (BLS reports). On the other side of the issue, there are claims that raising the minimum wage will actually have more drawbacks than benefits such as hurting the economy (Opposing Viewpoints). The

. Burkhauser found no evidence that minimum wage increases were effective at lowering overall poverty rates or poverty rates among workers. Even by targeting populations that raising the minimum wage was supposed to protect, such as less educated single mothers, Burkhauser confirms that minimum wage increases did little to alleviate poverty for less educated single mothers as well. Additionally, David Neumark of the University of California-Irvine and William Wascher of the Federal Reserve Board analyzed family-specific flows in and out of poverty as a result of an uptick in the minimum wage. Neumark and Wascher used current population survey data and found that when the minimum wage was increased some workers were lifted out of poverty, but others lost their jobs and found themselves in poverty as a result of raising the minimum wage. Neumark and Wascher’s findings suggest that minimum wage hikes only redistribute income among the poor and near-poor households. Only junior high school dropouts seem

A 2014 study found that raising the minimum wage in California to $13 per hour would “significantly benefit health and well-being.” Another 2014 study by the Bay Area Regional Health Inequities Initiative found minimum-wage workers are more likely to report poor health, suffer from chronic diseases, and be unable to afford balanced meals. Moreover, Minnesota State Health Commissioner Edward Ehlinger stated that raising the minimum wage in Minnesota from $6.15 to $9.50 “the biggest public health achievement... in the four years I've been health commissioner... If you look at the conditions that impact health, income is right at the top of the list... Anything we can do to help enhance economic stability will have a huge public health benefit. This is a major public health issue.” A minimum wage raise would also have a positive impact on education, increasing attendance and decreasing dropout rates. Teens who live in poverty are twice as likely to miss three or more days of school per month as opposed to those who are not. Also, although some teens work for extra spending money, in low-income areas, many work to support their whole family. This would allow them to work fewer hours for the same amount, thus providing for more time to dedicate to schoolwork. A 2014 study by the Assistant Professor of Economics at West Point stated that an increase to $10.10 would lead to a 2-4% decrease in the chance of a low-socioeconomic status teenager dropping out. Finally, another study by the President’s Council of Economic Advisors said raising the minimum to $12 by 2020 would result in a 3-5% decrease in crime and thus a societal benefit of up to $17 billion

There has been many conversations about what the positive impacts can come to America 's lowest income workers as a result of an increase in the minimum wage, and there has also been equally as many discussions over the negative effects the increase can have on similar people. This paper’s purpose is to combine each viewpoint and objectively analyze the arguments for and against an increase in the minimum wage. I will first discuss the

However, the minimum wage hikes are sold to the low-skilled workers, the studies show the hikes can equate to job loss or hours substantially reduced. Further, compounding income disparity or causing income losses and increased poverty. The net loss, the families of the low-skilled worker are not better off and in many cases, such as single mothers, worse off. (Sabia & Burkhauser, 2010 p 5) Providing a slightly more positive view but statistically insignificant, some low-skilled workers who remain employed tend to move toward the high side of the poverty level but not out (Neumark & Wascher, 2002).

Words like “unemployment” and “poverty” have seemingly crept into every American’s conversations, are televised on news channels as frequently as commercials, and are printed in every local newspaper and major magazine. Although most Americans are not faced with unemployment or poverty, those who are suffer great hardship through rising costs and a stagnant economy. Some admirably suggest that raising minimum wages across the nation would damper the effects of poverty on our most vulnerable and impoverished citizens. However, raising minimum wages has far greater implications than what is widely known and has the potential of leading to increased poverty and unemployment.

As stated by Ramirez, et al., “...there is no statistical significance between minimum wage and poverty rate.” From an international standpoint, Gindling also repeats this in terms of developing countries using similar reasoning. Poverty, however, while still a major issue within the United States, may be easier to fight here due to the laws keeping most people non-exempt from the minimum wage. Additionally, poverty is not the main target of a minimum wage increase; rather, a minimum wage increase allows for upward mobility among those who are struggling now, which over generations can resolve poverty.

Minimum wages can promote workers to increase their productivity when there is an incentive for them. For example, “Getting paid more could potentially boost worker morale. One of the toughest challenges businesses face is encouraging minimum-wage workers to "give their all." As someone who worked for near minimum wage as a teenager, I can fully appreciate that these workers' motivation may not always be sky-high.” (March, 2015, Williams) Therefore, money can motivate employees to give it their best when wages increases. Also, when wages rise, it can enhance employees’ psychological well being, leading to a successful productivity for the company. A study by Princeton economists Daniel Kahneman and Angus Deaton said, “Emotional wellbeing rises

This is a true statement, but opposition says that this only drives up the standard of living and inflation rate in the world. Inflation is defined as the overall general upward price movement of goods and services in an economy. Although some people who earn the minimum wage are teenagers, almost two-thirds are adults. The average minimum wage worker brings home about half of his family's earnings. Increasing the minimum wage will help these workers to make up for lost ground due to inflation and it will help make work pay. Though inflation is one of the main problems in our economy and even though inflation and minimum wage are directly related, increasing minimum wage will give opportunity for a lot of lower class families to make enough to afford important things, such as insurance. If someone takes a trip to the doctor, with no insurance, they will most likely have to pay around eight- hundred dollars out of pocket. This would take anyone at least three months on minimum wage with two incomes to pay off these medical bills. Barak Obama’s plan to institute a health care plan for everyone will relieve a huge burden on people and also allow them to stay above the poverty line. Heidi Shierholz, an economist at the Economic Policy Institute says, “Jacking the federal minimum wage from $7.25 to $8.25 would give a raise to 10 million workers, including many currently earning their state