higher minimum wage means people are less likely to leave their jobs which means a low turnover rate. A low turnover rate means less expenses. When companies have a high turnover rate it means the company is constantly losing workers and having to hire new ones. Loss of employees means a slowdown in productivity and a limited pool for promotion to management positions. Companies that have a decreased turnover rate spend less money on training new employees and have skilled workers who have worked with the company for years. Companies with a high turnover rate spend money on new employees and training, and are paying their workers minimum wage. Companies with a high turnover rate spend more money on hiring new employees and this is passed onto …show more content…
Extra money in people's pockets will help improve the economy. "Because no one who works time in America should have to live in poverty." (Former President Barack Obama) Raising minimum wage will help over sixty percent of people fighting poverty every day. FAFSA was created to lift people out of poverty and to help boost the economy. A study shows that over one billion dollars a year goes to McDonalds workers per year. fifty two percent of people working at a fast food place need government assisted programs. Minimum wage is also known as the "living wage". How is seven twenty five an hour a living wage when so much government assistance is …show more content…
In Barak Obama's speech Obama stated . “Of course, nothing helps families make ends meet like higher wages… And to everyone in this congress who still refuses to raise the minimum wage, I say this: If you gruel believe you could work full time and support a family on less than $15,000 a year, go try it. If not, vote to give millions of the hardest working people in America a raise” (Obama, State of the union address, Jan. 20, 2015) Obama pushed congress to raise minimum wage to ten dollars and ten cents an hour. Obama wanted the minimum wage to ten dollars and ten cents because people cannot depend on the minimum wage to support them independently. Obama told congress to try and live on fifteen thousand dollars a year. For most if not all congress members that would cut around ninety percent of their annual pay. The White House council of economic advisors believe more than thirty million minimum wage workers would benefit from a increase and be able to be financially stable. Around three million people working all hours of the day on minimum wage would be out of
President Barack Obama claims that raising the minimum wage would allow for low wage workers to “make ends meet”. This would ensure that everyone has a fair economic opportunity despite what economic trials many face. President Obama was a firm believer in raising the minimum wage and how it would make a huge difference in the lives of families throughout the nation. The minimum wage rate that President Barack Obama would like to see now would be an increase from $7.25 per hour to $12.00. The substantial increase would allow for those with families who work jobs outside of the Federal government and private industry to be able to more comfortably provide for their families. Based on the bill proposed by Congress, President Obama would
There are only a few ways a restaurant can manage a required wage increase and maintain profits. To stay in business, low earning restaurants like Waffle Now, would have to make all sorts of budget cuts. A lot will have to be lost in order to raise server wages.
The government spends millions of dollars supporting poor families every year. Since the government is already in an estimated $19.4 trillion debt as of 2016, raising the minimum wage would be a way to save them money and pay back some of that debt (Lantigua-Williams). By raising the minimum wage to $10.10, 1.7 million workers would no longer need governmental support to be financially stable. With this amount of people no longer needing the government's help, the government will have extra money to use. Just from the increase of minimum wage, the government would save $4.6 billion from not having to send out as many food stamps alone. And over just one year, the increase in pay would reduce the government spending on income-support programs by $7.6 billion (“Should Federal Minimum”). The government will be able to use this money on other important things that will help the country grow and
There is a lot of controversy over whether the minimum wage should be increased to 15$ an hour in all states. Proponents say that current wages in America are not livable because inflation is way higher than the current minimum wage; Minimum wage was 1.60 in 1968, which is equal to 11.60 today. Opponents say that many cannot afford this, will have to close down, make cuts, raise prices and lay off people because they will need to pay them more. Most economists believe that that high of an increase would hurt job growth. I believe that Increasing the minimum wage to fifteen dollars an hour nationwide will do more harm than good. Raising the minimum wage to fifteen dollars an hour nationwide is too big of a jump and would just cause businesses to cut off workers, force small businesses to close and increase inflation.
With the minimum wage set at $7.25 dollars per hour many people are struggling to make do. The average cost of living in America is too much for people, who make minimum wage, to make ends meet. It’s thought that raising the minimum wage will have a negative effect on the unemployment rate but there has been no evidence of that. The value of the minimum wage has dropped immensely since 1960. Raising the minimum wage will be beneficial to America and its citizens. In 1968 the minimum wage was equal to $10.74 today. That means in 50 years the purchasing power of the minimum wage has diminished. From the end of WWII upto 1968 minimum wage was on pace with the average worker productivity rate. If this trend was true from 1968 to today and worker
“Raising minimum wage doesn’t just benefit the workers behind me, it creates a proven ripple effect that increases wages all the way up the scale. Let’s get the facts straight, only twenty percent of people making the minimum wage are teenagers. The rest are hard-working adults, many of them have families, and I mean hard-working” (Biden). Studies have shown that increases in minimum wage prove that the public is overall safer and healthier. Many reports show that seven dollars and twenty five cents, the current minimum wage is a “startvation wage” and is not enough to keep families out of poverty (washington). Minimum wage in Illinois should be raised to benefit the people.
The debate over raising the minimum wage has been a hot topic ever since President Obama introduced the bill at the 2014 State of The Union Address. He intends to raise the minimum wage from $7.25 to $10.10, an increase of over 40%. While the President claims this idea to be beneficial to the economy, studies show otherwise.
The minimum wage has always been a crucial part of American economics, being a hot topic for debate. Recently, the idea of increasing the minimum wage to $10 an hour has sparked a great deal of controversy. These debates have jumbled American politicians and citizens around, trying to decide what they believe is the best way to approach the topic. Most Americans believe that the minimum wage should be increased, according to Pew Research Center, 33% favor and 40% strongly favor this raise. This can cause problems for many people without them realizing the consequences. The increase in minimum wage to $10 an hour would be detrimental to the United States economy, if passed it would result in increase of costs for businesses, unbalance of the
If the government raised the minimum wage, then the amount of people in poverty would decline. The poverty line in 2015 was $12,331 a year, only 20 percent below a full-time minimum wage worker’s annual salary of $15,080 (Should the Federal). As a result, minimum-wage citizens can barely meet their living needs. A study completed by the National Low Income Housing Coalition in 2015 said that a worker must earn $15.50 an hour to be able to rent a one bedroom apartment. If someone needed a two bedroom apartment they would need to earn $19.35 an hour (Should the Federal). More people would be able to find adequate housing or their family if minimum wage were to increase. As a result. Less people would be living on the streets. If the minimum wage was raised to $9 an hour, over 300,000 people would be lifted out of poverty. Even better, raising minimum wage to $10.10 an hour would result in over 900,000 people out of poverty (Should the Federal). Consequently, more people would be living comfortably if the minimum wage were to be raised. Poverty levels
Many argue that raising the minimum wage makes hiring workers more expensive, eliminates jobs at the bottom, slows growth and ultimately raises unemployment. Economic studies show that raising the minimum wage to keep pace with inflation creates little additional harm, but what the president is
What do you think happens when you lose your job? What if you were over fifty years old and only a few years before retirement? You don't get special treatment for all of your hard work until then. you get a call from The bank.you are infomed that you are late on your payments. To avoid losing your house that you have spent 15 or more years paying the loans, you get a job fast. You are now working two full time jobs to pay off the remaining loan and the extra charges because of being late on a few charges. You get home after an unbearable 12 hour day, which you have another 12 hour shift tomorrow, and see a car in your yard and a person with a suit and a notepad closely inspecting your house. You ask the person what's going on and they say
There has always been a mentality in the United States when it came to providing for yourself or others, and it’s that if you want to live a better lifestyle then you have to work for it. Ever since the industrial revolution that was the idea the United States were known for, the American dream. The opportunity of working hard enough so you can have a better life is the reason why so many people migrated to the United States. So many of them learned it was pretty hard to accomplish that goal while earning so little and working in dangerous jobs with little to no restrictions. Many immigrants lived in horrible conditions because of this and it wasn't until the government started putting restrictions and regulations on how little you can pay
The idea of having a federal minimum wage is a good one. The idea is to protect low and unskilled workers from discrimination and allow all workers to earn a living wage. The recent debate on the floor, though, is whether or not to raise the minimum wage from the current $7.25 per hour up to $10.10 per hour. President Barack Obama made this proposal during his annual State of the Union Address on January 28, and following this there were many hot debates about it. The debates focused not only on the advantages and the disadvantages of increasing the minimum wage, but also the alternatives to increasing it.
While some believe that raising the minimum wage will resolve poverty issues and lack of pay with the signing of legislation, the raising of the minimum wage to $10.10 an hour (as advocated by President Obama and the Democrats) would cause the poverty issue to be worse than it already is; inflation would occur, employees would be laid off, and minimum wage employees would lose welfare benefits, thus offsetting the wage increase. The Government should consider the effects on the American economy as a whole, as opposed to just considering the wage at which certain individuals are paid.
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