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Essay on Raising Minimum Wage Increases Unemployment

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“Of course, nothing helps families make ends meet like higher wages. … And to everyone in this Congress who still refuses to raise the minimum wage, I say this: If you truly believe you could work full-time and support a family on less than $15,000 a year, go try it. If not, vote to give millions of the hardest-working people in America a raise.” -–President Obama, State of the Union address, Jan. 20, 2015

President Barack Obama is renewing his call to raise the minimum wage to $10.10. During a speech at a manufacturing plant, President Obama proclaimed, "We should be raising the minimum wage to make sure that more workers who have been working full-time shouldn't be living in poverty...". He also called for a wage increase for tipped …show more content…

This means that all tips are placed in a “pool” that is then distributed amongst each staff member at the end of the shift. Also, restaurants have to pay credit card processing fees. Some restaurants will take a small percentage out of the waiter’s tip to balance out these fees. The waiter still gets a high percentage of the tip but out of that $20 tip, the waitress may only get between $5 and $10 out of it. There are many things that alter a tip worker’s paycheck. A simple wage increase could make a huge difference in how much money they take home each week.

Tip workers produce more than what they are paid for, which leads into the minimum wage effects on production. However, regular should not get a pay increase. Employers will have to pay workers more money for the same job, price adjustments will be made to accommodate the wage increases. Employees will be expected to produce more. For jobs that already require a lot of work, this could be very troublesome. Wages have an effect on production. For any job, an increase in pay means the job performance and contributions outweigh the current salary. If employers do not feel as though the increase is warranted, they may expect more from their employees. Also, employees will be fired faster because employers may feel as though workers are being overly compensated for their jobs. Some companies may also retaliate against the wage increases by

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