Summary Of Raising Minimum Wage

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.

There are a lot of people around the world who struggle with money and a satisfactory way of life. Whether they be in the United States or across the globe, there is a standard minimum wage set for the working class of their country. In the Unites States, there is a federal minimum wage of seven dollars and twenty five cents per hour worked. Almost every state has another set minimum wage, which typically is a little higher than the federal minimum wage, but it cannot be lower than seven dollars and twenty five cents. Countries set minimum wage laws, to ensure there is a basic quality of life amongst its citizens. As the minimum wage goes up in certain states, the quality of life also improves. The problem with a higher minimum wage, is now people are getting paid higher for entry level jobs which are meant for teenagers and people new to the workforce. If the minimum wage keeps increasing across the country, teenagers and young adults will have a much more difficult time finding jobs.

The federal minimum wage needs to be increased to keep up with inflation. Most wages are increased to keep up with inflation, but those at minimum wage tend not to see one so the employer can cut costs. Fortunately, some states have already fought this by raising their minimum wages to keep up with the cost of living in that area. If the minimum wage was changed with inflation, it would have been $11.16 in January of 2016 (“Should the Federal”). The lack of wage raises, along with the reduction in purchasing power, greatly affects the poor. Obviously, they have much less money to begin with; taking anything away from the poor hurts them greatly. According to Senator Bernie Sanders, “Since 1968, the minimum wage has lost more than 25 percent of its purchasing power (“Should We Raise”).” This loss in purchasing power will only continue. Inflation always

Raising the minimum wage is a very important public policy issue. Raising the minimum wage is a responsible policy that is supported by research and demanded by the American public. Each day, minimum wage workers across the country struggle to make ends meet and provide a decent life for their kids (Scott & Perez, 2016). Raising the minimum wage is a controversial issue, many believe that raising the minimum wage would only provide low wage workers more money to spend. However, the benefits can be endless for low wage workers. If minimum wage is increased across the United States it would afford the people effected more opportunities for financial freedom. Increasing the minimum wage would raise the standard of living for low wage workers, allow families to be removed from poverty, allow for government welfare spending to be reduced and lastly additional income being spent would positively affect the economy.

Inflation has also been one of the signature conflicts of raising the minimum wage. In the past 5 to six years, the inflations levels have been at 1.5 percent (CNN money). By raising the minimum wage, should not increase inflation but help it maintain its current state. When adjusted for inflation, the current federal minimum wage would need to be more than $8 per hour to equal its purchasing power of the early 1980s and more nearly $11 per hour to equal its buying power of the late 1960s (U.S dept. Labor). That 's why President Obama is urging Congress to increase the federal minimum wage and give low-wage workers a much-needed boost.

For many years, there has been an ongoing and strong debate in the United States on whether or not minimum wage should be raised from $7.25 an hour to over $10.00 an hour. Minimum wage is the lowest amount a company or employer can pay their employees. Many argue that the benefits of raising minimum wage surpass the negatives, yet many also disagree. But as a whole, the benefits of a higher minimum wage clearly outweigh the costs that come with it. Minimum wage should be raised because it would increase economic activity, reduce poverty levels, and allow for less government spending.

Next, another problem the rise of minimum wage poses is the rise of inflation. If employers are required to pay their employees more, then they need to do something to compensate for the extra money they are losing. With this in mind, employers would have to increase the prices of goods. But sometimes raising prices is not an option for employers. “If a business cannot simply pass along its new labor costs, it must somehow absorb them—by eliminating workers rendered unproductive by the new minimum wage, by replacing labor with more-productive machines, or by cutting production” (Intorduction 2). This brings back the issue of minimum wage causing a dramatic increase in unemployment. Sherk believes it is the wrong time to increase minimum wage, due to the fact that America is currently in a recession. The right time to think about raising minimum wage would be when the unemployment rate drops drastically. Sherk states “In 2007, Congress voted to increase the minimum wage, raising it in three $0.70 increments from $5.15 to $7.25 an hour. The final installment represents a 10 percent increase in the cost of hiring minimum wage employees” (Sherk 1). Seemly inflation and minimum wage increases influence each other.

The controversy over minimum wage has been ongoing. However, as explained in a Time article by Chris Lu on the subject, now is the prime time to raise the federal minimum wage. “Three out of four Americans support an increase; the economy is healthy; and many employers are already raising wages.” It’s reasonable to be worried about the consequences that raising the minimum wage might have in a time of crisis or unrest, but this quote mentions a healthy economy that would be able to handle the shifts in wages if things went south temporarily. Another argument made by opposers of raising the minimum is that businesses will be unable to survive. On the contrary, a good business will find it beneficial. “‘It’s a simple, but critical, concept: take care of your people and they will take care of your customers.’ For &pizza, higher wages reduce employee turnover, increase productivity and improve customer service.” Rather than hurting the economy, raising the minimum wage will help workers, business owners and the economy itself. A higher wage for all is

If the minimum wage goes up the potential of prices being raised are high. In the article “In Washington, D.C., a boost for the bottom line” Gina shaffer talks about raising prices of her products in paragraph 5. If the minimum wage is increased many stores will do the same in addition to letting people go. Another example of this is image A in our packet. The image shows two McDonald's employees enjoying the minimum wage hike, then a single mom with two kids is in the next part unhappy that the price of a happy meal has risen to

There is a lot of controversy on this topic because people assume that it would be at least adjusted to inflation. John Komlos, a professor emeritus of economics and of economic history at the University of Munich said that in 1968 when the minimum wage peaked adjusted to inflation it would be $10.90 (Komlos). One might wonder why the US is still at a minimum wage of $7.25. Aaron Pacitti who is a Professor of Economics at Siena College claims that even though companies like Walmart and Target announced they would increase wages for their lowest paid employees to $9 per hour and McDonald's will start paying its workers $1 more per hour than the local minimum wage the raise of the minimum wage to $15 would directly affect 44.9 employees (Pacitti). This is because it doesn’t just affect the people working at the lowest it affects everyone making $7.25-$15 and hour. If a higher skilled worker is getting payed $15 an hour instead of $7.25 when the minimum wage is change they would want a change in their salary as well because they would feel like they are doing better work for the same amount. If this keeps going up the chain then there is a serious problem on how the money is distributed in a company. Even though some companies will accept that fact that some people on the top of the ladder won’t get a raise other companies will find another way to find the funds somewhere

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

By raising the minimum wage millions of workers would see an improvement of their lives because they will finally have more money to be able to spend on themselves. In article one it talks through and states how “11 million workers above minimum wage will see and increase through “spillover”.” This shows that by increasing the minimum wage, workers that are already at that level would see a bonus within their pay. Another quote from article one is “the new minimum wage would affect families, disproportionally women who work 20 hours.” This shows that families, would be the first to feel the effect and also help families whose parents have to work overtime. In general, raising the minimum wage is very beneficial for families and female workers who work at or around 20 hours a week.

Although raises in minimum wage can be a truly great thing, it can come with many cons. A lot of the times states make big jumps in minimum wage that do not work with the rate of inflation. Inflation is the decreasing and increasing prices when purchasing the value of money. As minimum wage increases it could lead to inflation. This means that prices from lower wage companies will have to end up bumping up prices in order to pay employees. States that raise minimum gradually overtime

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

Did you know that the Federal minimum wage for employees has been $7.25 since June of 2009? In modern society, poverty and inflation are common substantial problems. Many people think increasing the minimum wage will corrupt businesses and employers by forcing them to make cost cuts and increasing inflation, while others think it will reduce poverty and inflation by increasing individuals income. For instance, according to the Los Angeles Times, Lissette Rowe, a 30 year old psychology student from Georgia, earns $7.25 an hour, making subs for a sandwich chain, but she still relies on her family to help pay her bills, provide food stamps, and money for her basic housing needs. By increasing the federal minimum wage it can help Americans afford basic needs without having to struggle through life.