preview

Pros And Cons Of Minimum Wage Laws

Decent Essays
Open Document

IV. Are minimum wage laws a direct source of discrimination? Minimum wage laws are another good example of how government programs that are labeled as being for the poor almost always have effects exactly the opposite of those of which their well intentioned sponsors intend them to have. The do gooders who believe that by passing a law that says, “Nobody should get less than fifteen dollars an hour,” which will help people who need the money are actually doing nothing of the kind. What you are doing is to assure that people who skills are not sufficient to justify that kind of a wage will be unemployed. This can easily be seen in the high unemployment rate among teenagers. Teenagresr are the ones who are just coming into the labor market and …show more content…

Most people on welfare lose their human independence and feeling of dignity. They become subject to the dictates of their welfare supervisor, which tells them if they can live in certain areas or if they can buy a new phone. They are treated like children, not responsible adults. They are trapped in the system, let's say a job comes up that looks better than welfare, they are afraid to take it because if they end up losing that job, they have to wait six to nine months before they can get back on welfare. As a result, it becomes a self perpetuating cycle rather than a temporary state of affairs. The welfare system takes people’s incentives away when it comes to getting a job. These types of programs tend to destroy the very fabric that holds a decent society …show more content…

The particular form that this myth takes is the belief that you can tax business without workers or consumers paying for it, or that you can create money at no cost. That if you turn on the printing press and produce those green bags it will enable people to become reicher without anybody becoming poorer. When you talk about a tax on business, you are talking about a tax either payed by the stockholder, consumer, or worker. An example, such as the Social Security tax, which is said to be half on the individual and half on the employer. This is purely fiction, the part that the employer pays is part of the employer’s wage cost. If an employer considers whether it is worth his while to hire an additional worker, he has to consider as part of his cost not only what he payed to the worker but also the extra taxes he will have to pay to the government. It makes no difference to the employer if he pays a worker a bigger check and the worker pays a larger part in that directly yet the government, or he pays a worker a smaller check in addition has to send a check to Washington. The fact is that the so-called tax on the employer is actually paid by the employee. However, you still have many people in government who are trying to impose a larger fraction of the Social Security tax on business, on the alleged grounds that spares the worker. It does not have any such effect, it actually

Get Access
Related
Get Access