Minimum Wage And Its Effect On The Economy

The controversy over what to establish as the official minimum wage in the United States has been debated and argued over for many years. Due to inflation, the gradual increase of pricings due to a saturation of printed currency, the minimum wage for workers has to be increased in order to compensate for the ever-fluctuating value of the U.S. Dollar. Many today are rising to the conclusion that a minimum wage of fifteen dollars an hour is necessary. This motion is designed to keep those who have minimum wage income out of poverty and to increase the amount of money in the consumer’s pocket overall. However, this particular increase in minimum wage will lead to the inevitable downfall of the United States’ economy and be a catastrophe for the working class.

The minimum wage requires employers to pay their employees a minimum amount of money which is based on the current version of the law, which is raised every year to adjust the living costs. There are some advantages and

Labor is an important service that must be available and balanced in an ever growing population. For example, there cannot be a larger number of residents than there is labor or else there will be a definite increase in poverty. In the United States, there is a set law of minimum wage, which has an effect on companies and how they manage their labor force. The increase of the minimum wages affects the overall distribution of hours available, therefore, hurting the amount of labor needed. Conversely, minimum wage also has a major effect on those who recetly entered the workforce. If the minimum wage rises, there will be an increase of the unemployment rate. Correspondley, as the unemployed suffer, the first to be affected will be incoming laborers who are looking for jobs and work experience which is essential for their future. However, the upside of increasing minimum wage is that for those employed who keep their jobs they will earn more income which may increase the

In addition, increase in minimum wage increases the number of worker and decreases the employee turnover rate. Chad Halverson writes employee who work on higher minimum wage feel more comfortable and satisfied in their jobs. Due to this reason, there will be less chance to quit the job. According to many economists, Yellen Janet, Manning Alan,

Research shows if minimum wage was to climb that it would hurt the least skilled and the least experienced people trying to seek a job the most. There are different of opinions people believe in about the positive and negative aspect of minimum wage. Supporters argue that such a boost will shrink poverty without plummeting jobs and that it will boost confidence, increase the normal living, and cut inequality and have businesses to be well-organized. Opponents that are not for minimum wage say it will increase poverty, unemployment and is not good toward businesses. The question about minimum wage and the effects it would cause if it was to rise, remains one of the most commonly studied topics.

House Bill 230, or the most recent bill introduced in North Carolina to increase minimum wage, was introduced by the House of Representatives on March 12, 2015. After the first version of the Bill was introduced, it was revised once. The bill was introduced because the goal of the state is to provide a minimum wage that allows for a decent and healthy life for its citizens. As the value of the American dollar continues to change, so does the average cost of living. The primary sponsors of the Bill were Representatives Farmer-Butterfield, L. Hall, Fisher, and Cunningham. The Bill states that “Employers shall pay employees wages no less than the minimum wage for all hours worked in North Carolina.” It then states that minimum wage in North

- An interesting pro to the impact of raising the minimum wage is that, yes, some employers might be tempted to cut employees with the higher wages requirements, but some might take it as an opportunity to increase productivity and efficiency of the business. Both

Although we can see from the last time the minimum wage was raisied it had a positive effect on the economy as David Cooper points out in his article Raising the Federal Minimum Wage to $10.10 Would Save Safety Net Programs Billions and Help Ensure Businesses Are Doing Their Fair Share, where it states that “More than five years have passed since the federal minimum wage was raised to its current level

Is it better for the economy to have a minimum wage or does it ruin the economy? Minimum wage is part of how the economy works. It deals with how much you may get paid or what might a customer give you in tips. Minimum wage has laws, helps with small businesses, and helps restore the wage for tipped workers.

Each year that the minimum wage figures stay stagnated at a specific number in nominal dollars, the reality of inflation slowly bites in as its real value is gradually adjusted and in the long run minimum wage earners are left with payments that cannot sum up or fulfill their household and other personal needs. On analysis of this fact, it is evident that the well-being and living standards of minimum wage workers is highly threatened especially for those people who have families and in this earning bracket. Currently, at a minimum wage rate of $7.25 per hour on a full time basis does not necessarily negate to the fact that they get to cross the estimated government poverty line on an all rounded annual basis. Comparing the current status and the 1960s value rates, the wage income is not enough to cater for the needs of a woman together with her family simply

Minimum wage is not enough to support a family, not even to support yourself. Everyone in the lower class knows the hardships that come with poverty and the minimum wage job that comes with it. The fact that most of the money is going to the top one percent, just shows their greed and their selfishness not trying to share enough of the wealth with their workers who have to get another job just for them to live a stable life. That is why, the movement, Fight For $15 is so important because the poor is now starting to fight back against the ruling class of America. The social inequality of class is really visibly shown as people who are living in poverty are politically fighting to get their salary raised up to fifteen dollars an hour. As the success of the movement grows, an article from the New York Times is explaining why the movement is becoming so successful, it also exposes the greed of the top one percent as they criticize the movement.

In United States, we hear the government, businesses argued about minimum wage. Whether it should be raised or leave it the way it is. But, what exactly is minimum wages? Minimum wage is the least amount of money per hour that must be paid to a worker after surrounding a service according to the law. Many working class families’ lives depend on this minimum wages. There are few families who make less than $15000 a year who feed their families on this salary and still pay bills from it. Over the past year, the federal government has been working toward raising the minimum wage but not all the congress women and men agree on this takes, also not all employers are ready to raise the amount per hour for their employees. Over the last few years, the government has argued on whether it’s right to raise the minimum wage, to distinct who it will benefit more. There have been several laws that have been passed to raise the minimum wage but, the federal government decided to gives each states the right to choose whether they would want to raise their minimum wages.

A minimum wage is the lowest hourly amount that employers may legally pay to their employees. This also means it is the lowest wage at which workers may sell their labor. Minimum wages laws exist in many different cities and countries, but opinions about their advantages and disadvantages vary throughout. Supporters of the minimum wage say it increases the standard of living of workers, reduces poverty, reduces inequality, boosts morale and forces businesses to be more efficient. Opponents of an increase in minimum wage say it increases poverty, increases unemployment and damages businesses.

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.

Moving along the list of advantages, increasing the minimum wage will also increase the amount of money workers have, which, in turn, will inspire them to increase their consumption and pump their extra money into the economy. If workers have more money going into their pockets from increased wages, the income effect comes into play, and provides an incentive to go out into the market and buy goods and services. In an article printed by The New York Times, it was also pointed out that raising the minimum wage would decrease labor turnover. This is because if workers are paid more, they have less incentive to leave their current job and seek a higher paying job.