How Does The Minimum Wage Affect The Economy

In a world governed by the rule of currency has a major effect toward the amount an individual owns. The current world economy, labor is required in order to supply services to whomever is willing to buy. The amount of money distributed and earned throughout the economy feeds the nation 's GDP, which shows the stability of the overall economy of that nation. There is an imaginary sequence that must be established in an economy in order to balance both labor and revenue to stabilize a country’s economy.

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

Raising minimum wages is a contestable issue because it is debated in wide and varied audiences. Minimum wage is near the top of economists’ interest; they are looking for the connection between low wages and poor job markets. Each country sets its own laws and regulations regarding wages. For this reason, it has significant importance to policy makers and workers in each of those respective countries. Social activists have also found interest in the topic due to the fact that those who earn a minimum wage tend to come from poor minority families. Furthermore, the average American should have the strongest interest in the conversation because most citizens have been paid a minimum wage at some point in their life. Due to this fact, the idea of a significant federal minimum wage increase in America is open for debate specifically to rejuvenate the job industry, improve living conditions for citizens, and strengthen the economy as a whole.

“When we talk about the kind of folks whose lives will be made better by raising the minimum wage, we 're not talking about a couple teenagers earning extra spending money to supplement their allowance. We 're talking about providers and breadwinners. Working Americans with bills to pay and mouths to feed” (Perez 2015). Minimum wage is a problem to America because some people cannot live off it and some people say businesses should not pay extra. Should the minimum wage be raised ? “A native of Detroit, Cecil Euseary, 52, moved to Holland, Michigan in 2007, after his mother died — he had to get out of town. He moved back to Detroit in 2014.He works at Burger King working minimum wage there. He can only get about 25 hours of work per week at Burger King. Cecil has been active in the "D15" campaign to increase the minimum wage in Detroit to $15 per hour. He once met with U.S. Secretary of Labor Thomas Perez, when he was visiting Detroit. "It 's hard. If it weren 't for my god mom — this is her house; I get a room upstairs — if it weren 't for her, I don 't know what," Cecil says. "I 'd probably be out on the street, in a shelter." (Euseary 2014). The minimum wage should be raised from $7.25 to $10.10 an hour because if you raise the minimum wage to $10.10 an hour it would lift people out of poverty, it would increase the federal purchasing power and not as many families struggling to make ends meet. Here’s another story, Enriqueta works as a housekeeper for minimum wage in the

We all want to help others. It’s part of our human nature. So why not raise the minimum wage and help these people living on the poverty line to provide a little extra for their family? It sounds like the right thing to do. But is it really helping? The ethical, legal and political standpoints on the minimum wage increase are complicated at best. Throughout this paper you will be informed on both sides of the

Protesters demonstrate for higher minimum wages every year. Protesters demand even higher wages than what some employers can handle paying. All people want to be able to live without worrying if they can pay for the necessities of life. We all want to be able to enjoy the high life, which comes with earning more money. Even if the amount of minimum wage cannot benefit us all with great impact, it can at least benefit those who need the money to rise above the poverty line. Many people don’t understand that there are also negative outcomes of wanting increase the minimum wage for employees. Most people only consider that the money earned will help themselves and their family members. Nevertheless, one thing the people know is that a small wage of 7 – 8 dollars isn’t enough to live well on. Nor is a higher wage of 10 – 15 dollars satisfying enough for us either. These issues show we need a balanced

Protesters demonstrate for higher minimum wages every year. Protesters demand even higher wages than what some employers can handle paying. All people want to be able to live without worrying if they can pay for the necessities of life. We all want to be able to enjoy the high life, which comes with earning more money. Even if the amount of minimum wage cannot benefit us all with great impact, it can at least benefit those who need the money to rise above the poverty line. Many people don’t understand that there are also negative outcomes of wanting increase the minimum wage for employees. Most people only consider that the money earned will help themselves and their family members. Nevertheless, one thing the people know is that a small wage of 7 – 8 dollars isn’t enough to live well on. Nor is a higher wage of 10 – 15 dollars satisfying enough for

WASHINGTON D.C. President Barack Obama has shouted on Congress to raise the combined minimum wage, the centerpiece proposition at the State of the Coalition address that concentrated on commercial inequality in America. Pointing out that the present minimum of $7.25 is nearly 20% lower in real paying manipulation than it was 25 years ago, he impelled legislators to prop a bill that should hold the nationwide rate to $10.10. We additionally have to do extra to safeguard our economy distinctions the dignity of work and that hard work pays off for all of our citizens. Americans overwhelmingly concur that no one who works maximum period ought to ever have to raise a relation in poverty.

In 2017 there were many issues leading the fact people had very low minimum wages so no matter how hard you are working you are barely getting paid. In the article “Should we raise minimum Wage”, Bernie Sanders talks about the problems with low minimum wage right now. He states “. That’s a major reason why more than 43 million Americans are living in poverty. Health-care costs, child care costs, college costs, and housing costs are all going up. Wages are not.” (Bernie Sanders.) The amount that people are getting paid now for minimum wage is not enough to live off of and people can barely live off of it. The low wage has to go up in comparison with other things because if one goes up and the other does not they will not be able to pay for

Throughout history, the lower class of society has always gotten “the short end of the stick” and been taken advantage of by the upper and more wealthy class. Hard working citizens that work long hours, yet receive low pay. Sometimes the person might have to work two jobs to provide for their family and put food on the table. The movement for lower class to strike back is happening and is growing every day. The movement for a raise in minimum wage is on the rise and the people are supporting it. Raising the minimum wage helps with the many problems associated with minimum wage jobs. Minimum wage presents many problems for the average lower class citizen including shelter, health insurance, and food.

In the article “Why the Minimum Wage ‘Fight for $15’ May Be the Wrong Battle,” by Mark Gollom he discusses the minimum wage increase from a New York standpoint. He says that it was hailed by labor activists because they saw it as a victory for thousands of low-income employees. He states that the fight for $15 isn’t something new that just recently became an issue, it’s actually been an issues that people have been fighting for since 2012. Gollom explains in his article that economists differ on whether or not raising the minimum wage is the right way to help out lower-income families.

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

The article “Wetzel’s Pretzels’ CEO says minimum wage increase boosts business” by Sam Harnett, analyzes deeply the minimum wage topic from all aspects; political aspects, social aspects, and economic aspects. It argues that if the federal minimum wage goes up, the net effect will be positive towards all industries in the economy. By positive here, I mean good effect from all aspects. In the textbook chapters under construction, Chapter 4 in “Economics” by Hubbard/O’Brien, it simply reasons the same outcome that increasing the minimum wage is necessary for all states in the US. The textbook chapter additionally highlights that any minimum wage above the current federal minimum wage has to be binding floor wage since the federal minimum

I agree with this article, written by Niels Veldhuis, to the extent that minimum wage negatively affects the economy, by increasing unemployment. However, if I were Veldhuis I would have added that the social values of minimum wage may outweigh the negative effects on the economy. This matter is a value judgement, which cannot be proved right or wrong by economics. Veldhuis supports his statement with proof from studies; I will explain these findings with further microeconomic theory. I will discuss the following to reflect upon the accuracy of his arguments: theories of producer behavior and cost minimization, market equilibrium, welfare, and the importance of value judgements.

Those living in the United States of America are experiencing some economically dark times. Unemployment is becoming increasingly worse. Social programs are failing. Prices everywhere are on the rise as wages are declining drastically. Class division has never been more distinct. Of those lucky enough to have secured the multiple jobs needed in order to maintain their subsistent existences, most make only a minimum wage, established by their state’s laws, which is then harshly taxed upon. Life is hard enough in our dying superpower of a nation, but even worse for the work force of America that must survive on minimum wage. It is an offending disappointment that our fellow countrymen and women must live the way they do. This raises a