Where to set the minimum wage has been a huge debate topic for years. The smallest increase or decrease can have a large overall impact on the economy. Do you think the minimum wage in California should be raised to $15 an hour? This is a question many in my home state are currently asking. California’s current wage is $9/hr., and the federal government is raising it to $10/hr. in January 2016. It may seem like common sense that if you have a higher minimum wage, then there will be less poverty. This is what I first thought when looking at this issue. However, Holtz-Eakin observed that a vast majority of minimum wage workers are in fact not living in poverty (Deutsch). Many minimum wage workers are not living under the poverty line, but simply …show more content…
They are not meant to support a family on. The most common type of minimum wage jobs include things like working at fast food restaurants or working as a cashier. Many college graduates start with their first job making close to $15 dollars an hour. Why should someone in an unskilled job, like flipping burgers be making almost as much as someone who went to college and worked hard to get a real career. Our president, Barack Obama, made a statement about wages needing to be raised. His reasoning was that people needed more money so that they can pay their daily expenses, bills, and take care of their families. Similarly, many people in favor of raising minimum wage argue that people need to be paid more so that their children are not raised up in poverty. But isn’t that why people go to college and get a career so that they can make enough money to support their family? Increasing the minimum wage would decrease incentive for people to go to college because they wouldn’t have to try as hard and they could still make a good amount of money even if they didn’t go to college. Minimum wage jobs have always been high school kids jobs, not a family's primary income source. Which leads to the next
Before people push a minimum wage increase, they need to be totally aware of all of the positive and negative results and consequences that might occur as a result. The issue concerning what to do about the minimum wage has served as an ongoing controversy amongst several people. The federal minimum wage should not be raised for several reasons including the harmful effect on small businesses, the increase of poverty, and the augmentation of competition for jobs.
"In fact, data from CPS suggests that the majority of poor families with heads of household of prime working age simply don’t work, so a minimum wage has no impact on these families." (Durden). The correlation between minimum wage and low-income families is weak. There are alternatives that could be more economically efficient for low-income families. It would be a delusion to think that raising the minimum wage would be the most economically efficient way to help low-income families.
In order to reduce income inequality, increase people's economic security, and help get people off food stamps, the government should increase the federal minimum wage. The average CEO makes 774 times the amount of a full-time minimum wage worker according to Cathrine Dill from forbes magazine. If minimum wage increased to $10.10, that number would decrease to 559. Although it’s not much, it still reduces the income inequality between the rich and poor people in America. Also, increasing the minimum wage will increase people's economic stability. Alternet.org states, “It is no longer the case that the people making the minimum wage are largely teenagers. In fact, now more than half of workers earning under $10.10 an hour are forced to support
This is due to the ultimate purpose of minimum wage, the fear of unemployment, and inflation. Mike Patton states, “After all, the minimum wage was never intended to be a career salary, but rather a stepping stone to bigger and better things” (par. 2). This means minimum wage was only supposed to help people who are starting off. Eventually, Congress predicted they would be promoted or move to a higher paying job with the experience they earned. Today, there are not many minimum wage workers coming from families in poverty (“History and Debate of Minimum Wage,” par. 5). Most of these workers are young, who still have support from their parents or other family members. These young workers fit the image Congress had in mind when creating minimum
Those in favor of the minimum wage have argued, contrary to established economic theory, that the minimum wage can actually increase employment. An increase in income results in additional "money in the pockets" of workers which encourages greater spending in the economy. This in turn causes greater demand for goods and services, an increase in production, and the creation of new jobs. Additionally, a higher minimum wage is thought reduce government welfare spending. If workers earned more money, their dependence on and eligibility for government benefits would decrease. A recurring theme among pro minimum wage arguments is the issue of stagnant wages. Improvements in economic growth and productivity have exceeded increases in the minimum
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.
It’s has been proven that a worker with one child struggles to provide, sometimes not going to the doctor in order to pay rent. Others go without eating.Minimum wage can support a 1-person family but how much is that person going to have to give up if they run into more expenses. If raised, jobs will increase,the government and economy would have more money because more workers are making money, businesses and companies will strive and flourish from a fair increase.Minimum wage is too low,so low that it shows workers whats its like to be poor, it shows the what tis like to not afford basic things. The minimum wage was at it’s highest in 1963 and has been slowly decreasing as the cost of living continues to raise, The government has so much money but why still yet is there no raise?
$7.25 equals two gallons of gas, one fast food meal, or a simple school supply. With the minimum wage at the current rate you must work one hour to earn the seven dollars and twenty-five cents that only supply you with small necessities for everyday living. This problem was encountered before and was resolved with the agreement to higher the minimum wage from $5.85 to the current $7.25. Although that was a big increase in salaries, was it truly enough? This controversy can lead to a major change in everyone’s everyday lives and boost our economy to a period of prosperity. The minimum wage should be increased to bring our economy out of a recession, bring families together,
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 wage is a very controversial topic. Minimum wage became a federal law in 1938 and only it was only twenty-five cents. Today minimum wage has increased and is currently ten dollars and fifty cents. As one can see minimum wage has increased dramatically and will continue to increase. Minimum wage should not continue to increase at this rate because many businesses will be affected, the price of living will increase and it will alter the way people live. With this minimum wage is hurting more lives rather than helping them.
Minimum wage has always been a controversial issue among policy makers and economists in the United States. Recently, the topic has become an increasingly hot debate whether it should be raised to help the minimum wage earners in America to make ends meet. The Seattle City Council has voted to gradually raise the minimum wage to a nation’s highest at $15 per hour starting from January 1, 2015(www.usatoday.com). While the state Washington already has the highest minimum wage among other states at $9.32/hour, and the average inflation rate in the United States in the last five years was 11%(www.bls.gov), it is very hard to comprehend why such move was taken by the Seattle City Council to raise the minimum wage by more than 60%. I believe that
Labor is the essential element that allows firms and businesses to rake in billions of dollars in profits each year. It is the foundation of the entire economy. Millions of Americans sell their resources and based on their education and skill level, they receive a salary or wage that is proportional. Many American, however, do not have the skills and educations to demand high salaries and wages and thus must succumb to working minimum wage jobs. Over the past century America has transitioned from a manufacturing orientated economy to a service orientated economy. Thus all of the people who worked in the mega factories of GM and Ford, no longer have blue collar jobs available. This has resulted in more and more people working minimum wage jobs, more specifically the fast-food industry. America is now faced with the question of whether or not to raise the minimum wage to fifteen dollars per hour in order
Imagine standing over a scorching grill for hours, taking care of the elderly, both lifting and transporting heavy loads, basically doing back breaking work; only to be making less than $8 and hour. That is the reality for millions of people in the work force who are earning minimum wage. Whether or not minimum wage should be raised has been a question many people have been discussing for years and has become quite controversial. Those opposed to increased minimum wages would argue that a minimum wage salary is already sufficient enough, or in some cases even “too high”. In spite of the opposing sides, it is almost certain that a rise in minimum wage will either positively or negatively affect several aspects of the country. For one, an increase in minimum wage could result in an economic shift. Furthermore, the current poverty level within the country, with the help of a higher minimum wage, would either decrease or as a result. Thirdly, a change in poverty levels caused by a higher minimum wage would ultimately change the amount of government spending and those who receive it. Minimum wage being raised would definitely be impactful not only the people receiving those minimum waged salaries, but also the economy, their families, and even the government funding.
Minimum wage is typically favored by society and seen as a way to raise the incomes of those under or at the poverty level, but despite it’s good intentions it at its current levels it barely keeps many families out of poverty. (Sharp, et al., 2013., p. 76) According to the Pew Research Center the Federal when adjusted for inflation the minimum wage peaked in 1968 and has lost 8.1% of it’s purchasing power. (Desilver, 2015.) Though minimum wage is not an effective tool of improving distribution of income or necessarily a good anti-poverty tool. (Sharp, et al., 2013., pp. 87, 89) Despite a minimal increase in 2009 the minimum wage still does not reflect the change in inflation since the end of the 1960s and should rest around $12. (Desilver,
Like I’ve said, the minimum wage in 2012 would have been $21.72 if it kept pace with the income growth, “goods and services have increased a lot but the minimum wage has remained low.” With minimum wage increasing workers will be able to own a home and support a family of four. Minimum wage staying where it currently is, working wouldn't be able to afford goods which would lead to an increase in poverty. Proponents of raising the minimum wage to a living wage argue that doing so would give workers and their families a better chance of climbing out of debt and poverty.” One of the most important reasons why the minimum wage will be a tremendous help to America is because it will decrease the unemployment rate and will help millions of people get out of poverty. Like Michael Reich informs that increasing the minimum wage will “lift nearly one million people out of poverty” and help them afford to have a roof over their head. When getting “a higher minimum wage, [it will] induce some automation and slightly higher prices, it [will] increase worker’s productivity and increase workers' purchasing power.” This is what increasing the minimum wage will do to minimum wage workers who are on the edge of going into poverty. Also, for productivity to improve, “a modest increase needs to happen which will reduce