Essay On The Advantages And Disadvantages Of Minimum Wage

The case against raising the minimum wage is very simple: a higher wage will make it more difficult and expensive to companies to hire workers. What will be the consequences on the economy? Well, companies won’t be able to pay all of its workers which will lead to more unemployment. At the end, people who keep their job will have a higher profit, however those who lose their job will suffer.

Also depending on where you live and how fast you grow, you will need to buy a variation of clothes for the winter and summer. With a family of four, it is almost incapable of happening. An average article of clothing cost anywhere between $15-30 for one piece. That is more than 2 hours of work. Imagine that, plus only getting an average of $290 a week. That will not last very long, which is very irritating to some people because they don’t want to let their family down, but raising minimum wage will help that tremendously. Another example that could take place is in an emergency like needing to stay late for work, and needing someone to babysit your kids. Many people cannot afford to do that with such little pay and have no choice but to leave work on time. With that happening and many not staying, that could cause them to lose their job, resulting in more poverty. To continue, minimum wage was created to stimulate the economy in 1938 (Sonn, Temple 1). Once minimum wage became a policy in the United States, it was successful in stimulating the economy when it was created because the federal minimum (if adjusted for inflation) was higher than today. Over the past 40 years, the power of minimum wage has fallen sharply. Minimum wage now, is about ⅔ percent of its previous power. The annual salary of a full-time American worker employed at $7.25 per hour is $15,080, which is less

The argument for minimum wage has remained remake consistent over the years. Some people are against minimum wage and the other think minimum wage can help you in a certain way. In the midst of the Great Depression, the Unites States federal government passed the Fair Labor Standards Act. The law has been amended almost every year to expand coverage of the wage floor and to increase the wage itself. Many of the fifty states have enacted their own minimum wage laws, some of them set even higher than the federal level. Minimum wage jobs don’t only help adults at hard times it help teenagers and college students. I learned that the proponents for minimum wage believe the raw value of one’s labor to a business

Raising the minimum wage would hurt the less fortunate families. It spreads income unevenly. Some people would receive more pay and others would lose their jobs making families and the economy suffer. If someone have a minimum wage job that pays $5.15 it is better than no job at $6.00 (Henderson). If someone has a job that does not pay well be thankful for it, it still provides for the

When you picture a minimum wage worker, who do you picture? Do you see a sixteen year old, a middle-aged mother, a college graduate, or even a senior citizen worker? In September of 2013, California governor Jerry Brown signed a new bill into act that would cause the California minimum wage to rise from the current $8.00 and hour to $10.00 and hour in increments over the next three years. The minimum wage rate will go up in two separate $1.00 boosts. The first will change the rate from $8.00 to $9.00 in July of 2014, and the second increase, to $10.00, in January 2016. In this paper, I will discuss, compare, and weigh the pros and cons of the minimum wage increase in California.

Beyond that many people who are working minimum wage have families to support and their income wouldn’t even be close enough for them to support a family. A large amount of people working minimum wage are below the age of 30, but there is still a very large percentage of people above the age of 30 making minimum wage. A quote states “About 20.6 million people (or 30% of all hourly, non-self-employed workers 18 and older) are “near-minimum-wage” workers” (DeSilver). Many of the people above the age of thirty don’t live alone and need to provide for other people. This leaves not only the employees in poverty but their children, or whoever else lives at home with them. It is said that “Less than half (45%) of the 2.6 million hourly workers who were at or below the federal minimum in 2015 were ages 16 to 24” (DeSilver). A change in minimum wage could potentially help people out of poverty.

It is hard to think about, but the lives that are touched the most by a low minimum wage are often children. These children also have less time with their parents because their parents will often have to work overtime or several jobs to make ends meet. If the minimum wage were to go up, parents could provide more for their children, but it can 't

Minimum wage has many advantages from a microeconomic and macroeconomic standpoint. A key advantage is the idea that minimum wage allows workers to earn enough money to live on. Thus, it ultimately leads to a reduction in poverty. Another key advantage is that minimum wage can actually create jobs and grow the economy. This would happen by having more money flow through the economy, because then household spending will increase (ProCon.Org). Minimum wage also allows workers to support their families. Without a minimum wage, many families will not make as much money, therefore, it will be very difficult for the workers to support their families. Minimum wage also ultimately reduces taxes, because instead of indiviuals being unemployed and on public assistance, the person is working. This relieves the load of taxes on the state by not having people on different public assistances, such as food stamps and welfare (ProCon.Org). Another pro of minimum wage is that it is another incentive for high school workers to get in the door early of unemployment and gain experience. This can help them in get a job in the future(Root). The issue of minimum wage has an abundance of pros.

The economic effects of raising the minimum wage can be damaging, but I believe the benefits of it outweigh the negatives. Those who tend to live on the minimum wage - fast food workers, retail employees, ext. - tend to spend most to all of their income. By raising their wage, they are able to 1. spend more and 2. possibly invest more. This would have a ripple effect throughout the entire economy - leading to raises for everyone. It is

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.

If it costs more to pay low-skill employees, than employers could replace 2-3 employees with 1 skilled worker who can multitask and perform the job at hand well. Another thing to think about when considering raising minimum wage is healthcare. Many workers would rather make less on the hour and be able to have company sponsored insurance rather than make more on the hour and have those hours cut back and left to get Obama care exchange for insurance that they may not need. One more factor to consider is that supporter’s of this debate is that raising minimum wage will reduce poverty and homelessness. According to Forbes roughly 60% of the homeless do not work, the only thing raising the minimum wage does for them is make it harder to obtain a job (Dunkelberg 1). Therefore not only does raising minimum wage eliminate jobs from people but it does not help reduce poverty

There have been many arguments over the years stating that raising the minimum wage will greatly impact the US economy. Some of the arguments have been that this will stimulate the economy, a competitive wage for all, and capitalistic competition. Although raising the minimum wage might sound like more money in your pocket, it would not only increase the poverty rate but also would cause those in poverty to rely on the government for more assistance as the prices of goods and services would rise well above what they are now.

When the cost of labor is increased artificially by legislation instead of through market forces, companies will attempt to reduce their cost. When you pay someone more to work, the assumption is that they will have more disposable income and increased consumption will contribute to the economy as a whole. By increasing the cost of labor without an increase in productivity, market forces will cause a business to look for alternatives either through reduction in work force or by relocating jobs (offshoring). While those who are still employed will see an increase in pay, those lost their job will have no income and the government will lose the taxes associated with those jobs.

Rise in minimum wage has several impacts apart from unemployment. The minimum-wage workers would have to pay more taxes and receive fewer benefits if they are subjected to rise of minimum wage. The federal marginal rate for tax is 32 percent on an average for low earning members. This would amount to almost one third of the income of a worker. The tax rate is quite high for low paid workers. The rise of minimum wage would also reduce some of the advantages and leverages that the low-wage workers enjoyed previously. In United States, the increase of minimum wage for workers would have some disadvantages including paying payroll taxes and payments for Social Security and Medicare (Clark 445). The economists have therefore stated that the minimum wage should be an amount that could meet the basic needs of a worker and it should not be increased unnecessarily without proper inspection because it could have negative impact in the life of the workers. The marginal tax of 32 percent does not include the benefits of Medicaid coverage services. However, the benefits of minimum-waged labors would definitely reduce as a result of slight increase in the minimum-wage.

According to, a news article in the Star Phoenix called “Pros and cons of a minimum wage increase hourly” (Tyndall, 2015). Tyndall states that, minimum wage is basically the lowest pay rate employers can legally give their workers. He states that people are not opposed to minimum wage increase but supporters of minimum wage believe that it will help property and opposes believe that the increase of minimum wage will increase property as well as unemployment hurting businesses. Tyndall states that how important income is to survival and having a way of life to support their families as well as their livelihood. A person that has low income or a loss of income could harm their personal health. Due to the fact that they cannot afford health care people who have higher wages can afford healthcare.