The Effect of Minimum Wage on the American Economy

Many fast food workers and minimum wage employees have been protesting recently, in hopes of increasing the federal minimum wage. States such as Seattle, that have already increased the minimum wage to $15 per hour, and California, that has approved a bill that will change the minimum wage to $13 per hour in 2017, have already jumped on board with the movement. President Obama and many other protesters around the country who are fighting for the increase in the minimum wage believe that the raise will decrease poverty among Americans and provide a stable income to support a family, or serve as a livable wage (Lee). Instead of creating a positive impact on those in need, increasing the minimum wage will affect the lives of lower-income, lower-skilled workers in a negative way. According to conventional economic analysis, employment levels for lower-income workers in jobs such as fast food, or any job that pays minimum wage, have steadily decreased with the rises in the wage (“Effects of Raising”). While it will negatively affect the lower-income workers, the other half of Americans who work for higher wages and are not in poverty, will have increased incomes (“Effects of Raising”). Raising the wage will not produce the desired outcome and will consequently make the situation worse. Also, these types of jobs are not meant to be supporting families or be a livable wage. These jobs are stepping stones for teens and young adult workers to gain

Increasing the legal minimum wage affects the supply and demand side of the economy differently. The people hurt by an increase in the legal minimum wage include producers, taxpayers, and consumers (Brown, 489).

Minimum wage together with the jobs that pay near the minimum wage, play a crucial role in the United States labor force. According to Belman and Wolfson (2014) research indicates that alterations in the minimum wage affect about 20-30 percent of the entire labor force. These figures indicate the importance of considering the policies related to minimum wage since they affect a substantial fraction of the labor force. The U.S. labor department states that minimum wage workers who could benefit from increases in the federal minimum wage are majorly 20 and above at 89 percent. Of these, 56 percent are women; this goes in contrast that the minimum wage increase to $12 per hour will benefit the teens only (Dol.gov,

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 idea of the minimum wage is that workers are guaranteed enough money to improve their standard of living. The price of the minimum wage is determined by the state, but a federal minimum wage is set. Some states choose to go above the minimum wage, while others, such as Alabama and Louisiana, choose to not have a minimum wage at all (Root). The minimum wage is important to society, because it can affect many people’s lives. There are many pros and cons to having a minimum wage in the United States. Furthermore, various stakeholders are also impacted by this policy in numerous ways. Minimum wage is a microeconomics and macroeconomic problem that has many consequences. Therefore, minimum wage has been a great economic issue because of

The jobs that pay close to the minimum wage are extremely important to the united states labor force. It is estimated that a change in the minimum wage would affect nearly 30% of the entire labor force in the US. The main demographic that would be effected by a change in the minimum wage is males and females ages sixteen to thirty. This demographic encompasses a large amount of high school and college students. Although they are the majority, there are also a vast number on people thirty and above who aren’t students that will be effected by a change in the minimum

On the ladder of economic success, minimum wage is the bottom rung. Raising the wage can put the rung out of many people’s reach and take away any chance at all for them to climb their way up. Many people believe raising the minimum wage will reduce poverty levels and that the wage has not caught up with inflation; however, the raise would have more negative than positive effects on the economy. These negative effects include unemployment and an increase of the price of consumer goods.

The groups that are directly affected by the minimum wage consists of young workers or teenagers, part-time workers and workers from non-poor families.

Sunday, July 24, 2016, marks seven years since the last time the federal minimum wage was raised (U.S. Department of Labor). Since raised, the cost of living has increased by nearly 12 percent. When President Obama called for an increase in 2013 19 states, have raised their minimum wage between $8.15 and $11.00. But is the hike beneficial to everyone? According to conventional economic analysis, increasing the minimum wage reduces employment in two ways. First, higher wages increase the cost to employers of producing goods and services. Second, a minimum wage increase raises the cost of low-wage workers about other inputs that employers use to produce goods and services, such as machines, technology, and more productive higher-wage workers

The minimum wage is a controversial topic. Many people want different numbers for the minimum wage, others would like to abolish it completely. The effects of raising it are both positive and negative. This issue affects many people’s lives, and can be viewed as a question of social justice.

There has always been a constant debate about whether or not our government should raise or lower the minimum wage within the United States. Especially after this past year’s controversial presidential election, it seems to be a running concern between our citizens about whether or not the minimum wage should stay the same, increase, or decrease to create the most beneficial outcome for our constituents. Although our country seems to be very divided on this issue, multiple sources address this policy in our daily newspapers, articles and magazines.

Employment rate have you ever heard of Employment rate, poverty rate, inflation, or the ripple effect? Employment rate can go up or down depending on what the employment rate is. Poverty rate goes up and down because of the price of the property. inflation go up and down every day this could be good or bad. Ripple effect can create or make a negative situations for employees. The effects that minimum wage has on the effects on the economy with the employment rate, poverty level, price of goods and the ripple effects. All of them affect the minimum wage in a bad and good way.

Anyone can drive through a drive-thru at midnight. Anyone can go to the store whenever they need to pick something up. But, not everyone stops to think about the workers who slide the debit card or bag the groceries. Many times, these people are making the minimum wage. Their lives and wages are effected by an economy which never seems to stop changing. Due to the federal minimum wage being recently increased, potential effects on employment can be explored on a national trend, in individual states with higher minimum wages, and in the lives of teens.

The minimum wage was established after people became so poor from the Great Depression, that laborers could be unfairly paid next to nothing. One cause for the fight of the minimum wage is because most Americans are not able to afford adequate housing with their current pay, working full time. Because of this, Americans with sufficient income are fighting back to this idea, claiming that it will create a large loss of jobs. This could be true, but there is no clear evidence of it. The minimum wage needs to be raised as soon as possible. If not, the poverty will increase as the costs of housing go up, as the income amounts remain the same.

Changes in Employment Composition. Employers may adjust to a higher minimum wage by "upgrading" the skill level of their workforce, rather than cutting the level of their staffing. This process could conceivably work against the employment prospects of less-educated and less-experienced workers, especially, the argument goes, school-problems teens.