Minimum Wage Drawbacks

The minimum wage debate has been a hot topic over the past year, especially with the Presidential Election. This is a divisive topic that people rarely agree upon. There are essentially two sides you can take when it comes to this argument. Either people are for minimum wage or are against raising, or even having, a minimum wage. Proponents of the minimum wage are typically politicians who are lobbying for the vote of the people who feel that a minimum wage is critical to their wellbeing, and those who sympathize with people who earn “minimum wage”. Minimum wage is destroying America’s free market economy and someone needs to take action and find a better solution to this problem. Without anyone acting on this problem now, it can potentially be worse in the long run. Raising the minimum wage in the United States will do more harm than good to society because of the long-term effects.

One of the most talked about subjects in the U.S economy is the topic of minimum wage. With president Obama’s increase in the minimum wage to 10.10$ per hour people, both economists and politicians alike, have been debating whether raising the bar is a smart idea. At a time when the country the country’s inflation continues to rise at a steady pace and Americans are constantly working to feed their families, some economists know that a raise in the minimum wage would help elevate some of the difficulty. The last time the federal minimum wage was raised was in July of 2009, where rose from 6.55$ to 7.25$. However, there are plenty of reasons as to why the wage should be raised. Some may not think it, but raising the

The issue of the minimum wage has recently come to the forefront of the debate on social policy. There is much disagreement over the wisdom of an increase in the minimum wage in the current fragile economic recovery. Some argue that a dramatic increase is what is needed in order to lift the standard of living for those in the bottom of the economic pyramid. Economists reason that the basic principle of supply and demand mandates than an increase in the wage would result in the loss of available jobs. Small businesses maintain that it would spell their doom.

One source from the Opposing Viewpoints Database called, “Raising Minimum Wage Increases Unemployment” argues against the minimum wage by suggesting it will decrease financial security and cause higher unemployment rates. The author provides unemployment statistics from the 1990s onward as evidence to argue against the minimum wage. The article says, “In 1990, Congress enacted another minimum wage increase.” “The month before the increase took effect, unemployment was 5.2%.” “With the increase, unemployment began to steadily increase and unemployment eventually peaked at 7.8%” (Jaarda). The article emphasizes to readers that increases in minimum wages and following increases in unemployment are not just coincidences by continuingly pointing at similar statistics throughout history.

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

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 benefits for an increase, then the disadvantages, and in the last paragraph, I will

Our entire society in the United States is complicating whether or not our nation should raise the federal minimum wage. Ranging from researchers who have been studying this incompatible topic throughout their entire lives to amateurs who simply expose their opinions without any logical reasoning to the public are still not able to come to an agreement for a stable minimum wage. Many citizens may assume that increasing the minimum wage, $7.25, an hour, by a couple dollars may not make a significant impact to our economy. However, there still coexists a complex reason behind this whole topic that is currently disabling our society to contemplate on a solution. Generally, most traditionalists who believe that increasing the minimum wage may hurt the young and unskilled workers in an economical perspective. On the other hand, a vast majority of researchers may believe that this opportunity wouldn’t kill jobs and may even give the economy a boost by allowing more low-income workers to spend more on necessities. This controversial issue may be the only fire that will never die out in the United State’s economical history.

Sklar provides numerous statistics in the article including that the wealthiest 1% of Americans hold 23.5% of the revenue in the United States (Sklar, 2009, p. 2). Moreover, “average wages are 7% lower today, adjusted for inflation, than they were in 1973” (Sklar, 2009, p. 2). Indeed, statistics are provided to support that unemployment rates do not rise when the minimum wage is raised. In fact, the Fiscal Policy Institute analyzed that “states that raised minimum wages above the federal level experienced better employment” (Sklar, 2009, p. 2). As people have more money, they spend that money on necessities. Hence, as the minimum wage rises, people will have more purchasing power causing an improved economy through spending. The article continues to provide statistics that demonstrate previous minimum wage increases have resulted in sizeable economic spending to boost the economy. These are persuasive statistics in favor of raising the minimum wage.

For over a decade, many Americans have struggled with the low wage issued from employers, despite working very long hours of work. According to a study done in Oregon State University, a federal minimum wage was first set in 1938, starting at 25 cents an hour. Due to inflation that has occurred many times throughout the century, the call for raising minimum wage is to be immediately answered. However, the minimum wage falls when congress does not raise the minimum wage to keep up with inflation. Because of this many cities and states have departed from the minimum wage. In this essay, to be discussed is the reason why imposing a minimum wage above the equilibrium wage will reduce employment and contribute to an increase in the unemployment rate.

Kruger PhD ANd stanley phd compared two fast food places. One of the fast food places was in New Jersey with an INCREASED minimum wage and one in Pennsylvania with no change at all. There was “No INDICATION that PEOple were fired or had reduced Employment.

The idea of minimum wage is that workers are guaranteed enough money to live off of. The price of minimum wage is determined by the state, but a federal minimum wage is set. Some states choose to go above the minimum wage, while others, such as Alabama and Louisiana, choose to not have minimum wage at all (Root). Minimum wage is important to society, because it can affect many people’s lives. There are many pros and cons to having minimum wage in the United States. Furthermore, various stakeholders are also impacted by this policy in numerous of ways. Minimum wage is a microeconomics and macroeconomic problem that has many consequences. Therefore, minimum wage has been a great economic issue because of people’s support and opposition to the policy.

Proponents of raising the minimum wage claim that if the minimum wage was raised, then many economic and social problems would be alleviated. This contention is at odds both with economic principles and years of creditable research. The effect of raising or even having a minimum wage has been studied extensively and the majority of studies have proven that raising a minimum wage does not have the desired effect. Both micro and macroeconomic forces affect the results of raising the minimum wage. The secondary effects of raising the minimum wage are bad both for

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

Opponents to minimum wage raise claim that the minimum wage costs jobs by pricing low-wage workers out of the labor market. However, when we review academic studies that examine the effects of minimum wage increases on

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