The Negatives of Increasing the Minimum Wage in the United States Minimum wage jobs are everywhere, and that makes them relatively easy to find. Many Americans work minimum wage jobs; however, these jobs are being overworked by the wrong people. A minimum wage job in the United States has never been, and never will be, meant to provide for a family. Adults who work a minimum wage job and try to raise a family on that income are almost always living in poverty in the United States, but what is poverty? According to Jewel in “Street Life Is No Life for Children”, “Poverty [is] the lack of affordable housing, access to education, and many other resources” (Jewel 428). In recent years, there has been talk in the United States about raising …show more content…
While there are facts that say otherwise, these people believe that an increase in pay would motivate more people to work, therefore, bringing more people into the workforce. Others view that an increase in the minimum wage will provide these workers with an increased income, which would make these families better off and put them above the poverty threshold. On another side, many Americans living in poverty cannot afford housing due to the increase in value on the home market. Minimum wage workers already have low homeownership, and the minimum wage has no effect on the recovery of the housing sector. Furthermore, these individuals believe that the since the value of the minimum wage is at a 40 year low, that increasing the minimum wage will bring more value to the dollar. The Americans who are for an increase of the minimum wage are failing to see what an increased minimum wage would do to employment rates and the economy, which eventually leads back to the national poverty rates. Contrary to popular belief, increasing the minimum wage will have negative effects on the United States and will not decrease the national poverty rate (United States: Minimum Wage has Little Economic …show more content…
“These two characteristics suggest that a substantial proportion of low-wage workers in low income families need higher skills to obtain higher wages, especially since low skill, well-paying jobs are a declining share of total employment” (Lerman). How does one decide how many skills a worker has though? The National Adult Literacy Survey (NALS) is a test used nationwide to determine an individual’s ability to perform different everyday tasks that involve basic reading, writing, and mathematical skills. To give an idea of how the test works, the test is scored on five levels. An individual scoring at the lowest level is not able to perform tasks such as locating an intersection on a street map or total the costs from a purchase order
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
Many Americans work solely to pay for food, electricity, and housing. In response to this “nearly 30 states have raised their minimum wage to combat job loss, poverty, and economic inflation.” (http://www.pewresearch.org). This just goes to show that more than two thirds of the country are willing to raise their wages, because the local government thinks that it is absolutely necessary in order to allow people to live sustainably. States such as California have raised their wages up to as high as $15.00! Raising the minimum wage has helped many people begin to start to live healthy lives, and it provides a way for families to expend for necessities if they work at or near minimum wage,
Jason Furman and Parrot Sharon explain why raising minimum wage will help families. The wage has to be elevated to just the point where a family can actually afford all the necessities they need in order to survive. The cost of living in houses for poor people makes it difficult for them to afford it and is difficult to stay on task with all the bills. Many minimum wage workers have families to support. The cost of raising children is very expensive. It is an average of $7,100 per year. Minimum wage workers can barely afford to pay child care for one child, let alone two. Increasing minimum wage will also make life easier to those who have food stamps and child care needs. Which can also help them get into college a lot faster so they can go out and pursue a better paying job.
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.
Ira Knight, who is an author of article “Let’s Make the Minimum Wage a Living Wage”, expresses an opinion that increasing the minimum wage would help all struggling workers and at the same time improve U.S economy. On the other side, Janice Steele in her article “Keep the Minimum Wage Where It Is” argues that raising the minimum wage would have bad effects on workers, consumers and small businesses. Ira Knight’s article seems to be the stronger of the two positions because her arguments are based on several recent studies, and last but not least, she had a personal experience with the minimum wage job.
Raising the minimum will end up hurting Americans more than helping them. The people that are for raising minimum wage are people who believe that increasing minimum wage can help those people who are unskilled
When there are millions of Americans living at or below poverty lines, something has to be done. Billion dollar companies and businesses that employ workers, paying them low wages is hurting the economy. The reality is, unless the minimum wage is raised, the cycle will only continue. With higher minimum wages in place, the entire country does better and, therefore, should be raised. There needs to be laws put place to raise the minimum wage. Doing so would boost the economy with all of the money that Americans would put into it. With higher minimum wages, millions of Americans can get out of poverty, not having to rely on the government for assistance such as food stamps, public housing, child care, and health care needs. They can afford better housing options in which they want to live. Communities would see less crimes in neighborhoods creating a safer environment. Aside from that, Americans can afford a good education, health care, as well as healthier eating and exercising habits.
McDonalds, Wal-Mart, and cleaning services: all of these have one thing in common-they are all minimum wage jobs. Their pay is low and work load high, and because of this living as a low wageworker is never easy. One must handle many hardships in order to make a few meager dollars, with which most cannot sufficiently live. 'The 'living wage' in the United States is between $9-10.18; sounds great to a college student, but in the real world this kind of money just isn't going to cut it,' (Ramisch). Minimum wage standards for American workers rest at $5.15 per hour, and in such slighted fields, very few make much more than that, perhaps $6-7, but even that is a rarity. The material life of a low-income employee includes bare necessities
The first reason why the Untied States should increase minimum wage is to reduce poverty rates. An anti-poverty tool is simply whether employers would employ fewer workers if they had to pay higher wages. Which I believe is wrong because since they would be increasing minimum wage then the employers will be making more money, which then opens up more employment options. In addition, if employers are paying more, they will want to hire more experienced or more educated workers. But, this is why we would increase minimum wage so that more people can afford to go to school and finish their education so that they will be able to receive those jobs. Also, between 1998 and 2004 retail employment rose more than three times faster in states with minimum wage above the
Changing the minimum wage is a common debate and many politicians argue if the wage should or should not be raised. The minimum wage is an example of a price floor and is the lowest legal wage that can be paid to many workers. With the increase in jobs, it is shown that more people will vote for those in favor of raising the minimum wage in the upcoming presidential election. I have to agree for I believe that an increase in the minimum wage is good for the economy. Boosting the minimum wage will help increase the consumer spending that stimulates our economy and that local businesses need to grow. Realistically, if the majority of voters think that the minimum wage is too low, then it will be raised. While some people think that the minimum wage should be raised, others do not. If more people vote in favor of keeping the minimum wage at the same rate, then it will remain at that price until the majority of the people vote in favor of a change.
There is no difference in what people who make more money do then minimum wage people different besides the fact if the minimum wage people do something ad hoc their kids can be taken away by social services. For those who are in low wage jobs can’t really afford to invest in flexibility with their job because they can lose it over them finding someone or having to look after their children. A minimum wage job with $7.25 as an income can’t afford childcare. Children by themselves doesn't seem to be a problem since most children have phones which makes it a lot easier for
Low minimum wages affects everyday families and lives, more than the average person would think. A small minimum wage could have an very small effect on someone’s life, such as not being able to afford a new pair of boots or that new phone, contradictory to this low wages could also have a very serious effect on someone’s life . Meaning that a parent or single individual could not support their family because a lack of income, it could also mean the difference of living under a safe roof, or living in the streets. In 2016 alone, 40.6 million people in the United States
When asked about protests around the country to raise the minimum wage to 15 dollars, which equates to about $31,000 per year, he said, ”with taxes too high, wages too high, we’re not going to be able to compete against the world. I hate to say it, but we have to leave it the way it is. People have to go out, they have to work really hard and have to get into that upper stratosphere”. Those who are for a raised minimum wage state that currently it isn’t enough to live on, and that most people who do earn minimum wage don’t even work for 35 hours a week. They also argue that it could act as a stimulus when low-income houses earn more money, then they are likely to spend it, which would put more money into the economy. The American Economic Policy Institute said "By increasing workers' take-home pay, families gain both financial security and an increased ability to purchase goods and services, thus creating jobs for other Americans”. But those who are against it argue that studies have shown that increasing the minimum wage does not decrease poverty. They also argue that it would put pressure on small business owners, causing them to hire fewer workers, and also causing the unemployment rate to increase even more.
Many researchers believe that minimum wage does not always have an inverse relationship on employment. This report aim is to discuss the negative relationship between minimum wage and employment. The minimum wage can be defined as an active labor market policy instrument, used by governments around the world to set a wage floor. It mostly leads to structural unemployment since minimum wage is sectorial, that is every sector have a different minimum wage from the other i.e. the minimum wage for taxi drivers is 3,218/month while the minimum wage for domestic workers is 2,230/month (Wage Indicator, 2016: 1).
There are countless articles that exist regarding the minimum wage workers, so coming up with data and information about them was not the difficult part. It was the narrowing down of the information that was hard. Our research questions was as follows: what are the challenges that minimum wage workers face in getting by and trying to improve their circumstances? In brainstorming, we decided to begin by thinking about all of the challenges that minimum wage workers in trying to make ends meet. After thinking out loud for a while, we realized that we had come up with an extensive list of obstacles that most minimum wage workers probably face. This extensive list was far too long to report on, however, so we narrowed it down to four categories: 1. the lack of federal benefits and the cost of health care, 2. the need for more hours to make ends meet, 3. the balancing of life outside of work including school and children, if applicable, and 4. the issue of the lack of education and educational opportunities. Each of these categories of challenges contribute and mesh together within the cycle of poverty, which will be discussed later on. First, however, we must define the demographic of the minimum wage workers.