Raising Minimum Wage Analysis

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

Within the article Huppke uses ethos, pathos, and logos to sway the readers see how the raise of minimum wage would negatively effect both the economy and everyone personals. When the author says “The job loss argument is supported by many different academic

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.

Paying for a college education creates a dilemma when a student only earns minimum wage flipping burgers at a local fast food restaurant. The current federal minimum wage stands at $7.25 per hour before taxes. The debate on whether it should increase or remain constant has been occurring for many years. Raising the minimum wage to match the current cost of living seems like a good idea, but this could cause some negative effects. John Komlos’ article “Why raising the minimum wage is good economics” delivers a more effective argument than Rex Huppke’s article “The argument against raising minimum wage” through the use of ethos, logos, and a valid conclusion.

One of the most talked about subjects in the U.S economy is the topic of minimum wage. With president Obama’s increase in the minimum wage to 10.10$ per hour people, both economists and politicians alike, have been debating whether raising the bar is a smart idea. At a time when the country the country’s inflation continues to rise at a steady pace and Americans are constantly working to feed their families, some economists know that a raise in the minimum wage would help elevate some of the difficulty. The last time the federal minimum wage was raised was in July of 2009, where rose from 6.55$ to 7.25$. However, there are plenty of reasons as to why the wage should be raised. Some may not think it, but raising the

Rex Huppke, a journalist for the Chicago Tribune, deftly discusses the pros and cons of raising the minimum wage in the last of a two-week series in “In the Minimum Wage Debate, Both Sides Make Valid Points”. Although I am for raising the minimum wage, Huppke’s presentation of the opposite argument does make one think beyond the gut reading that everyone deserves more money. Huppke’s argument that a large number of minimum wage earners are student of the elderly leads me to believe that a tier of wages would take care of the issue. For example, anyone working less than 35 hours a week would be paid at a certain rate; with full time getting an increase. I am not concerned by the argument that a higher minimum wage leads to lay-offs or price increases when most products sold in America are manufactured by cheap foreign labor. There is already a huge profit margin that could sustain such an increase. Rather than give discounts on goods and services, thus preventing employees from exercising the right to shop, stay or eat wherever the employee chooses, these employers trap workers into giving back the very money they have “slaved” for.

The issue of the minimum wage has recently come to the forefront of the debate on social policy. There is much disagreement over the wisdom of an increase in the minimum wage in the current fragile economic recovery. Some argue that a dramatic increase is what is needed in order to lift the standard of living for those in the bottom of the economic pyramid. Economists reason that the basic principle of supply and demand mandates than an increase in the wage would result in the loss of available jobs. Small businesses maintain that it would spell their doom.

The issue of raising the minimum wage from $7.25 to $15 an hour is a heavily debated topic. Both sources against or in favor of the minimum wage refer to a “growing gap” between low-income workers and high-income earners. Sources against the minimum wage believe raising it will increase this gap, whereas those in favor of the minimum wage believe it will decrease this gap. The arguments in favor of the minimum wage rely mostly on ethical beliefs, such as “pay should reflect hard work,” to advance the need for a higher minimum wage. Whereas, the arguments against the minimum wage use quantitative data like unemployment rates and economic analysis involving supply and demand to undermine the policy behind the minimum wage. Ultimately, the

Sklar provides numerous statistics in the article including that the wealthiest 1% of Americans hold 23.5% of the revenue in the United States (Sklar, 2009, p. 2). Moreover, “average wages are 7% lower today, adjusted for inflation, than they were in 1973” (Sklar, 2009, p. 2). Indeed, statistics are provided to support that unemployment rates do not rise when the minimum wage is raised. In fact, the Fiscal Policy Institute analyzed that “states that raised minimum wages above the federal level experienced better employment” (Sklar, 2009, p. 2). As people have more money, they spend that money on necessities. Hence, as the minimum wage rises, people will have more purchasing power causing an improved economy through spending. The article continues to provide statistics that demonstrate previous minimum wage increases have resulted in sizeable economic spending to boost the economy. These are persuasive statistics in favor of raising the minimum wage.

Rex Huppke, a writer for the Chicago tribune,writes about how raising the minimum wage may not be as positive as the society and economy as Americans are lead to believe. After interviewing many specialist and professors concerning this subject, he concludes that despite what other newspapers are saying raising the minimum wage could damage the economy. As an effect of what the media are saying this article was written to inform the public of the real cost of raising the minimum wage.

Since minimum wage workers are primarily the poor or lower middle class of America, a raise in the minimum wage is meant to help exactly those people. In Are Minimum Wages Fair?, a 2012 American Enterprise Institute article, Aparna Mathur and Michael R. Strain argue that the minimum wage shouldn’t be raised, because it is fair. The authors state, “ If on balance raising the minimum wage finds fewer people working and more poverty, then it is hard to argue that raising the minimum wage is fair.” This quote directly correlates to the previous article, because the authors are stating that the minimum wage is fair as long as it doesn’t rise. A rise in the wage will cause people to lose their jobs. The authors’ logical appeal enables them to cross their point to their audience very effectively, because they imprint a sense of logic in the audience’s thought process. The use of an “if, then” statement causes the audience to accept the authors’ claim, because it is presented as common sense. The authors go on to state, “In addition, the minimum wage doesn’t primarily affect the poor. Many poor Americans are unemployed and are obviously not helped by increasing the minimum wage. Among people who do work, only a tiny fraction of them are employed in minimum wage jobs, and many of those are teenagers from middle-class families.” The authors make a convincing point in this quote. They state that the point of raising the minimum wage is to help out the poor and lessen the gap between the rich and the poor, but most poor people aren’t employed. This ultimately leads one to accept that raising the minimum wage wouldn’t positively affect many people. Although this is the logical side of this argument, the truth is “poor” is a technical term. This article classifies poor as living in poverty and being unemployed. However, as stated in the

The federal minimum wage was created during the Great Depression to increase finances and secure workers’ rights, but the current rate of $7.25 per hour is too low, because it is not based on productivity, which should be the case. Currently, employees get paid less money than what they could make years ago. The federal minimum wage, in 1968, adjusted in 2014 for inflation, was $10.75 (Lester). In other words, the federal minimum wage, in 1968, was $3.50 higher than the current minimum wage. Five year ago, workers had more income than today, allowing employees to afford more needs. Additionally, in 2012, The Huffington Post published an article, by Caroline Fairchild, associate business editor, that

There has been many conversations about what the positive impacts can come to America 's lowest income workers as a result of an increase in the minimum wage, and there has also been equally as many discussions over the negative effects the increase can have on similar people. This paper’s purpose is to combine each viewpoint and objectively analyze the arguments for and against an increase in the minimum wage. I will first discuss the

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

In a paper titled “Four Reasons Not to Increase the Minimum Wage,” the Cato Institute, a libertarian think tank, offers four empirically backed consequences of increasing the minimum wage; these consequences include: the loss of jobs, low skilled workers being disproportionally affected and priced out of the job market, a minimal effect on reducing poverty, and higher prices for goods. The paper compiles a number of studies to support these