Fast Food Workers

The fast-food workers are expressed as a pond in a bigger game. They have to deal with their low pay in order to ensure low prices by these franchises. Jencunas concerns go on to represent the beginning of a bigger chain effect. Briefly, he states that, “The average fast food store would go from profitable to unprofitable overnight. Some would close immediately, leaving their workers worse off than they were when working for $7.50 an hour, while others would raise prices and try and remain in business, hurting consumers” (“Don't Deserve Any More, or Less”). Evaluating his reasoning we see that if fast-food workers ask for a higher minimum wage, they will in return influence the profit margin and actually increase unemployment rate in this industry. The researchers go on to inform us that if their minimum wage increases the industry won’t be able to afford the change in their profit margin and result in bankruptcy. However, Mary Kay Henry, president of the Service Employees International Union, which supports the fast-food strike states a different claim:

Minimum wage has always been a controversial issue. Many politicians use the argument of minimum wage for their own political propaganda. Some may argue minimum wage should be raised, while others believe it will have detrimental effects on our economy if it is raised. Surprising to most people, minimum wage earners make up only a small percent of American workers. According to the Bureau of Labor Statistics, minimum wage workers make up about 2.8% of all workers in America. “The majority of minimum wage workers are between the ages of 16 and 24. These are high school and college students” (Sherk 2). But high school and college students are not the entire percentage of minimum wage earners. When minimum

Since 2008, McDonald’s and Walmart corporations have paid their employees’ by the same federal minimum wage amount of $7. 25 per hour (Friedman, 2015). Not until recently, news stations have reported that most McDonalds and Walmart employees live below the poverty line. In fact, McDonalds has started their own McResource Line to give their employees advice on how to provide for their families while living on a minimum wage budget. Soon after, the company renounced their website after the backlash it caused from the media. Therefore, McDonalds and Walmart decided to raise their minimum wage to $9 an hour (Gasparro and Morath, 2015; Friedman, 2015). After researching, I believe large corporations such as McDonalds and Walmart should have to pay living wages, and it is extremely unethical for these

The reality is that salaries have not been increasing fast enough to keep up with inflation. In the article “PRO/CON: Living Wage for Fast-food Workers?” it states that “It would be $17 per hour today instead of a meager $7.25” proving that salary is not increasing as fast as inflation. In “Mcdonald’s Raising its Minimum Wage, but Some Say it’s Not Enough” it is said “Mcdonald’s projected by the end of 2016, the average wage rate for employees at its company-owned locations would exceed $10 an hour.” Even with this slight increase wage theft that is being performed by many fast food companies makes it difficult to support a

In 2013, 3.3 million Americans worked at an hourly rate at or below the federal minimum of $7.25. Those3.3 million of Americans represent just 4.3 percent of hourly paid employees (Pathe) Raising minimum wage to 12 dollars an hour could reduce the welfare spending by at least 17 Billion dollars. There are at least $1,117 billion dollars in welfare, including $716 billion for Medicaid, and $411 billion in other welfare services (Chantrill). Several families in the US are working for a minimum wage job and often need help weather its Food stamps, or getting paid by the government. There are 43 Million Americans on food stamps (Pflaum)

Raising the federal minimum wage allows individuals to be able to provide for themselves and their families without the need for some type of government assistance. One report explains that families with workers only earning minimum wage rely on those workers for 59% of the families’ total earnings (Fox). Many people associate minimum wage jobs as starter jobs for high school students, but the reality is that the number of college graduates working in minimum wage jobs has more than doubled over the past five years. The majority of people who are earning minimum wage are

According to a study done by Perdue University, “…paying fast-food restaurant employees $15 an hour could lead to higher prices. Prices at those businesses could increase by an estimated 4.3%, according to the report” (Wihbey, Effects of raising the minimum wage: Research and critical lessons”). With a higher minimum wage, businesses must then pay their employees more, and to pay these additional expenses; they are coerced to charge more for their products, which impacts everybody, making it more difficult for people to provide for their families. The Cato Institute stated, “According to a review of more than 20 minimum wage studies observing price effects found that a 10 percent increase in the US minimum wage raises food prices by up to 4 percent” (Wilson, “Four Reasons Not to Raise the Minimum Wage”). If the federal minimum wage increases from $7.25 per hour to $15 per hour, it is being increased by slightly more than 206%, which, according to this study, could lead to almost an 84% growth in food prices. According to another study on the effects of an increase in the federal minimum wage on consumer prices in the Reason magazine, “Raising the minimum wage to $15 could increase the cost of food by 43%” (47: 10). After a significant increase in the federal minimum wage, the employees who did not lose their jobs would then be receiving

Many fast food workers and minimum wage employees have been protesting recently, in hopes of increasing the federal minimum wage. States such as Seattle, that have already increased the minimum wage to $15 per hour, and California, that has approved a bill that will change the minimum wage to $13 per hour in 2017, have already jumped on board with the movement. President Obama and many other protesters around the country who are fighting for the increase in the minimum wage believe that the raise will decrease poverty among Americans and provide a stable income to support a family, or serve as a livable wage (Lee). Instead of creating a positive impact on those in need, increasing the minimum wage will affect the lives of lower-income, lower-skilled workers in a negative way. According to conventional economic analysis, employment levels for lower-income workers in jobs such as fast food, or any job that pays minimum wage, have steadily decreased with the rises in the wage (“Effects of Raising”). While it will negatively affect the lower-income workers, the other half of Americans who work for higher wages and are not in poverty, will have increased incomes (“Effects of Raising”). Raising the wage will not produce the desired outcome and will consequently make the situation worse. Also, these types of jobs are not meant to be supporting families or be a livable wage. These jobs are stepping stones for teens and young adult workers to gain

Previously when the minimum wage was increased from $5.15/hour to $7.25/hour, only 15% of the poverty-stricken population received any sort of benefit from the rise. According to the research done by CATO Institute, if the federal minimum equilibrium were to be increased from the current $7.25/hour to $9.50/hour, a maximum 11% of the population affected by poverty would receive any benefit from the demand of a higher minimum wage. “One recent academic study found that both state and federal minimum wage increases between 2003 and 2007 had no effect on state poverty rates” (Wilson, 9). Receiving $15.00/hour for flipping burger patties sounds like a job with major benefits, but in reality, it is doing

Have you ever thought if you were a worker and you think you should get paid more an hour? Well the fast food workers at Mcdonalds get paid (their minimum wage is $7.25 an hour). And some people think it should really be $15 an hour because they really do work hard like making sure everything is clean to have a space to work with, practice their skills to get their food ready fast and so they can enjoy, and lastly knowing how to welcome their customers. Like so, “A first wave of fast food strikes began in November 2012 in several New York city restaurants”. They are protesting to this cause because “That for many would boost their hourly pay to $15 from the current federal minimum $7.25”. (Article ½)

The federal minimum wage has been in effect since The Great Depression. Recently, it has become a hotly contested issue. Should it be raised or not? The issue is a complicated one because some believe that more harm will come than good and many believe this because majority of people are misinformed on the impact raising minimum wage can have on the American economy and families. According to Cato Institute’s article on Reasons Not to Raise the Minimum Wage, the important or more discussed problems that are argued by antagonist are job loss, higher prices for consumers, and the little effect on reducing poverty. Although these problems seem significant, protagonist will say the war against poverty and income

News stories abound with demands from workers, organizations, and lawmakers to increase the federal minimum wage. Headlines throughout the country highlight recent minimum wage policy changes in major cities such as Los Angeles and Seattle. Last month, Governor Andrew Cuomo of New York announced an approved minimum wage increase to $15 an hour for all fast food workers in the state (McGeehan). Even the website for the White House has a separate page, “Raise the Wage,” advocating for Congress to increase the federal minimum wage to $10.10 an hour ("Raise the Wage"). The most commonly held beliefs supporting an increase in the federal minimum wage are the potential lifting of families above the poverty line and the reduced demand for governmental assistance promised by livable wages. Democratic legislators believe people who work hard in the United States should receive living wages that combat poverty. Emotions flare over the minimum wage debate due to its strong connection with poverty and governmental assistance. While the issue tugs at the heart, people must also consider the issue logically in order to avoid unforeseen consequences. Increasing the federal minimum wage will have negative effects on training opportunities, non-wage compensation, and labor competition.

While the opposition purports that job loss and excess power to the government are the fundamental products of raising the minimum wage, the inherent ethical worth of doing so remains paramount. In 2014, the Obama administration proposed to raise the federal minimum wage to $10.10 an hour, which would have been a significant increase. Poll after poll demonstrates support for an increase in minimum wage from many groups, such as stakeholders, policymakers, as well as the American people. Many Americans agree that increasing wages for lower income individuals is a key component in reducing poverty. Assuming that a minimum wage beneficiary does not lose employment or hours, an increase in the minimum wage can have a positive effect. According to the Congressional Research Service, “a single parent with two children who works full-time, year-round at the current minimum wage has earnings of about 78% of the poverty line. An increase in the minimum wage to $9 per hour would raise that family’s earnings to about 97% of the poverty line and an increase to $12 per hour would

Some people say that when we raise our minimum wage our economy inflates, and the price change would be pointless. Yet when our economy constantly shifts from depression to economic boom, the average worker needs a money cushion. Living on paycheck to paycheck is not a healthy lifestyle, and is in complete contrast to the American Dream. As a high school student working on minimum wage, most people think that $7.25 is plenty for a teenager, when in actuality it is not. Although opponents can argue that “most minimum wage workers are not trying to support themselves, but are living in households where their living expenses are largely provided for,” says Beth Shulman, this is not the case. “Half of fast-food workers during the 2010-12 were 23 or over,” according to John Schmitt from the Center of Economic Policy Research. Most of these workers probably clock-in two minimum jobs, and are struggling to make it paycheck to paycheck, never getting the chance to pay off their debts, to take personal vacations, or to live the American Dream.

The article that we are critiquing is aimed to assess the blow of increased minimum wage from $4.25 to $5.05 per hour in 1992 on the employees working in fast-food restaurants in New Jersey and Pennsylvania. The author has shown two comparisons in this study. The first comparison is the employment growth rates at the fast food stores in New Jersey and Pennsylvania, before and after the minimum wage raise. The second comparison is the change in employment rate from fast food stores (in both states) that pay higher wages initially to the lower wage stores. Krueger Card concluded that there was no indication or signs that the minimum wage increase, decreased employment