Raise Minimum Wage

“A 15 percent increase in the minimum wage nationwide would destroy about 290,000 to 590,000 young people's jobs, and about 400,000 to 800,000 jobs overall” (Henderson, David R). Due to the Fair labor Standards act, the federal minimum wage, or the lowest you can pay an employee for work, currently stands at $7.25 an hour. Although a number of Americans think that raising the minimum wage would benefit our country, it would actually bring a number of problems to our economy, such as a rise in job loss and high school dropout.

Several examples of data and statistics from studies elucidate the harmful effects on small businesses and in addition the compelling of companies to close as a result of the increase of minimum wage. According to a Gallup poll that took place in 2013, 60% of small business owners agreed that an increase in minimum wage would be harmful to their small businesses (Should the Federal). Small businesses do not have the money supply that chain corporations do. Naturally, if they had to pay their employees more, it would be harmful to them. Several Walmart stores have closed and Walmart stores that were yet to open have closed as a result of an increase in the minimum wage (Should the Federal). An increase in the minimum wage must even have harmful effects on larger businesses. They obviously employ several more people than a small business, so they have to pay each worker more resulting in a net loss of a lot of money from the chain. Additionally, in several work places, if the minimum wage were increased, the wages of those who hold higher positions would have to be increased. For example, if the amount of money that the minimum wage dishwasher or table busser in a restaurant increased, then the chef and manager would need to be paid accordingly. If the minimum wage were to increase, it would be detrimental to both small and large businesses.

There is a lot of controversy over whether the minimum wage should be increased to 15$ an hour in all states. Proponents say that current wages in America are not livable because inflation is way higher than the current minimum wage; Minimum wage was 1.60 in 1968, which is equal to 11.60 today. Opponents say that many cannot afford this, will have to close down, make cuts, raise prices and lay off people because they will need to pay them more. Most economists believe that that high of an increase would hurt job growth. I believe that Increasing the minimum wage to fifteen dollars an hour nationwide will do more harm than good. Raising the minimum wage to fifteen dollars an hour nationwide is too big of a jump and would just cause businesses to cut off workers, force small businesses to close and increase inflation.

The main reason raising the minimum wage radically would kill the economy is the pressure it would place on small businesses. According to TheWashingtonPost.com article, Small Businesses are the backbone of the economy. They also cited that many studies from the U.S. Small Business Administration show small firms employ just

Beside the increase in cost to businesses and customers, other people can potentially be hurt by this policy. By increasing the wage, small businesses will suffer a higher cost that can lead to cutting jobs, stalling new hire or even shutting down. On the other hand, the economic plight of these minimum wage workers should also be considered. Therefore, the $15 plan would produce unpredictable consequences, while not doing anything would doom minimum wage workers to live in in poverty and to consume public resources.

Raising the minimum wage can hurt many people in different aspects of business. Increasing the minimum wage will cause businesses to lay off employees. Matt Zwolinski stated “By increasing the cost of labor, they reduce the demand for it” (3). This essentially means that those who are increasing the minimum wage are also creating unemployment. The increase in lay offs causes the unemployment rate to skyrocket (“Should” 1). Joseph Sabia and Richard Burkhauser estimated that about 1.3 million jobs would be eliminated if the federal minimum wage was increased to $9.50 per hour (“Four” 1). Raising the minimum wage would cause many small, local shops to close their doors. Even many big fast food companies would have to close their doors because they would not be able to pay their employees (“Should” 2). Seattle, being the first US city to raise the minimum wage, has received a lot of attention. A study found that there were many jobs lost due to this wage

A minimum-wage increase would put billions of dollars into the U.S. economy, benefiting businesses. It may not result in a surplus, but it will benefit the economy. Workers who are affected in any way by the minimum-wage being raised even to just twelve dollars an hour would see nearly eighty billion dollars in increased earnings over the next five years. Because low-wage workers tend to spend increased earnings locally on basic necessities, this will benefit businesses that rely on consumer spending. It still won’t come close to the equilibrium price, but it will help. The minimum wage last year was twenty-four percent below the level it was just about fifty years ago despite the fact that American productivity has more than doubled over that period and low-wage workers now have much more experience and education than they did back then. Now it’s the time to address this weakness in the minimum wage by raising it and lifting the earnings of low-wage

If minimum wage was increased many jobs would be lost. Employers would be forced to fire people because they wouldn’t be able to afford to keep them. “In 1938 minimum wage was raised by twenty-five cents, resulting in many people losing their jobs” (Cato Institute). Unemployment rates would be higher than ever. Raising the minimum wage would also make it more expensive for business’ to run, giving them no choice but to close down sending more people out of work causing the unemployment rate to go up (ProCon.org). Raising the minimum wage would result in higher prices, which would then result in less items being sold (ProCon.org). Without money

Jobs will be lost if the minimum wage increases. Employers won’t pay employees more than their worth. If the minimum wage was, let’s say, $15 per hour, employers

With fast food workers making $15 an hour, students could be tempted to drop out to pursue fast food or other jobs that require no skill or experience. A minimum wage of $15 per hour is a $30,000 salary. It’s unfair to high skilled workers who worked hard to make that much. A good minimum wage can increase attendance and decrease drop-out rates. Poverty will decrease and students will be able to go to school more. Higher pay gives them the opportunity to work less hours and make the same amount so they have time to study. It’s better to make minimum wage $10.10 because it is a livable wage that does not undermine the value of higher

The economic effects of raising the minimum wage can be damaging, but I believe the benefits of it outweigh the negatives. Those who tend to live on the minimum wage - fast food workers, retail employees, ext. - tend to spend most to all of their income. By raising their wage, they are able to 1. spend more and 2. possibly invest more. This would have a ripple effect throughout the entire economy - leading to raises for everyone. It is

According to the "Raising, the Federal Minimum Wage to $10.10 Would Lift Wages for Millions and Provide a Modest Economic Boost" by David Cooper, if the federal government increase the minimum wage it would add billions of dollars into the economy, adding thousands of new jobs. David Cooper states that” A minimum wage increase from the current rate of $7.25 an hour to $10.10 would inject $22.1 billion net into the economy and create about 85,000 new jobs.” These results display how raising the minimum wage can be beneficial to many people through job growth. Supporting that, if the federal minimum wage was to rise it would be a good thing for people and would reduce the unemployment rate by creating many more employment

Some that oppose raising the federal minimum wage would insist that individuals in specific fields lack experience and skill for such a large wage and that many businesses would have to lay off employees that would result in producing with minimum labor because these businesses cannot afford wage increases. I believe raising the minimum wage would expand overall economic activity generating more jobs and more monetary flow by increasing both supply and demand. If minimum wage was increased, the economizing problem would be slightly reduced and more money back into the market increasing demand and needing more human labor resources to produce a larger supply to fulfill the demand.

According to Michelle Chen the increase in minimum wage to fifteen dollars would be beneficial allowing families to be able to purchase more food therefore allowing parents and their children to eat more. While Ed Rensi believes that the increase in minimum wage would cause businesses like McDonald's, whom he used to work for, to invest in self-service computer kiosk in replacement of part-time employees causing many people to be laid off. Since Chen’s idea of a $15 wage has not happened yet, her article is not a trustworthy source.

The most prevalent and steadfast myth surrounding the raising of the federal minimum wage is that it will doom the economy. This might seem logical at first, but just think about it for a second. Why do minimum wage employees need more cash? The answer is simple: To spend it, to buy the things that they and their families need to survive. “Most minimum wage workers need this income to make ends meet and spend it quickly, boosting the economy. Research indicates that for every $1 added to the minimum wage, low-wage worker households spent an additional $2,800 the following year” (Fair). Furthermore, EPI estimates that if the federal minimum wage were raised to $10.10 an hour, it would result in over