Raising The Minimum Wage Boom

Rex Huppke, a writer for the Chicago tribune,writes about how raising the minimum wage may not be as positive to 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 is saying this article was written to inform the public of the real cost of raising minimum wage.

It can also be argued that raising the minimum wage would inadvertently have a negative effect on the economy and actually increase poverty. If the minimum wage were to increase from $7.25 to $10.10, the result would be the loss of 500,000 jobs, as predicted by the Congressional Budget Office (Should the Federal). 54% of employers stated that they would lower hiring levels and 38% stated that they

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.

Okay, so some people may lose benefits, but at least they are able to bring home more in their pockets. Fair enough, but what if that wasn’t enough to compensate for the profit loss in companies? So now what? Well the company’s only option is to fire some employees. Sherk (2007), states “that most estimates suggest that each ten percent increase in the minimum wage reduces employment in affected groups of workers by roughly two percent.

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

Raising the minimum wage would establish 85,000 new jobs and would also increase amass household spending by $48 billion the following year (“Should the Federal”). There are no signals shown that a boost in the minimum wage would lower employment. Even though people argue that the authors found “Little or no evidence of negative association

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.

Many argue that raising the minimum wage makes hiring workers more expensive, eliminates jobs at the bottom, slows growth and ultimately raises unemployment. Economic studies show that raising the minimum wage to keep pace with inflation creates little additional harm, but what the president is

Another thing business might do in a reaction to the raised minimum wage is increase prices. This will indeed make the poverty-stricken poorer. With food and other goods costing more, and jobs being hard to find, it will be extremely difficult for people to survive in the economy.

Businesses simply can not afford to pay their employees more money for low skill jobs. According to the Congressional Budget Office, 38% of employers who currently pay their employees minimum wage said they would lay off some employees if the minimum wage was raised. Raising the pay may benefit a few employees, but it will also devastate the workers laid off. People putting in their resumes will have a much slower rate in getting jobs. As a result, the unemployment rate will increase and people will have to resort to relying on unemployment and welfare to pay their

Proponents of raising the minimum wage claim that if the minimum wage was raised, then many economic and social problems would be alleviated. This contention is at odds both with economic principles and years of creditable research. The effect of raising or even having a minimum wage has been studied extensively and the majority of studies have proven that raising a minimum wage does not have the desired effect. Both micro and macroeconomic forces affect the results of raising the minimum wage. The secondary effects of raising the minimum wage are bad both for

Raising the minimum wage can result in job losses due to lower profits for businesses. It can also potentially decrease employee hours by changing them from full time to part time. Additionally, it may reduce the full time benefits that they receive. If this were to happen, then the employees affected will actually be earning less than they did before the increase. For example, from the Article Maximum Divide on Minimum Wage (Mejeur, 2014), they state, “Labor costs are the largest share of the budget Mandatory hourly wages mean that businesses will be forced to cut jobs or reduce hours to maintain their bottom line”. This shows that when businesses are forced to spend more money, they lose profits that could have helped create more jobs and company expansion. If they are tied back due to be forced to increase wages without economic justification, then companies in America will not be improving, but rather just surviving. Since the overall goal for most businesses is to improve profits and enlarge their businesses, it is safe to assume that, in order for companies to survive, that the minimum wage needs to stay the same unless there is viable economic justification to do so. Artificially being forced to increase the minimum wage due to a government sanction or mandate is ill advised. If an increase in wage needs to be implemented, then the government needs to create policies that aid economic expansion for companies to be able to afford it. These policies could

One main finding of the economic principle and practical research over the past 70 years, is that minimum wage increases tend to reduce employment. The higher the minimum wage relative to competitive market, results in a greater employment loss that occurs. Although minimum wages presumably

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

The economy is mostly based upon small businesses because most of all operating businesses are operated by them. With recent talk in the media about minimum wage raises there may be very bad results for small businesses. The only controllable cost in businesses are benefits, wages and costs. Payroll is by far the largest cost for businesses. In order for all wages to rise employees must be paid more. With that happening the skilled or more experienced workers will be in demand of higher pay than your average minimum wage workers. Staff layoffs are usually the first choice as consumers may react panicky to an increase in product prices. Notable minimum wage increases can send companies into serious monetary problems. Fast food restaurants