Minimum Wage

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Minimum wage is a controversial topic because everybody wants more. People want more money and some think that just increasing minimum wage can increase more money that they get. However, this is far from the truth as sometimes employers can’t pay their employers more than minimum wage. Not to mention that if the minimum wage goes up so does the price of everything else in order to adjust for the new price. So essentially increasing the wage majorly does nothing except maybe lower the value of your money since more money would be required for everybody and more money to go around gives it less value. Don’t get started and think “well if increasing it majorly does nothing what about a small increase” because that’ll just ruining the…show more content…
So according to the Contemporary Economic Policy, lowering the minimum wage would increase the GDP of the united states by 1-2% which is enough to make a change in today’s prices. A higher GDP is important for other reasons as well as it’s always been a sign of huge economic growth ahead. For example, back in 1945 the united states had a massive GDP thanks to war production of world war II. five years later during the 1950s, america had a prosperous life. A single stable job supported a whole family. Another benefit to lower minimum wage is towards tipped workers like waiters. The Journal of Labor Research says in their article “The Minimum Wage and Tipped Workers” that as the minimum wage increases income and employment for tipped workers decrease and the raising the minimum wage would do the opposite. Their explanation on how tipped workers would lose income is well said “work-ers earn no tips so these restaurants pay employees $5 an hour. But at full-service restaurants, servers may earn $4 an hour in tips. The minimum wage law requires these restaurants to pay $2.13 an hour, so the workers earn $6.13 an hour with tips. If the minimum wage is increased to $5.00 an hour, fast-food restaurants are unaffected and still pay $5 an hour. But the full-service restaurant's rises from $2.13 an hour to $2.50 an hour (50 percent of $5 is offset with tipped income). As this example sug- gests, restaurants with the better-paying (tipped) jobs

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