The Effects Of Higher Minimum Wage Essays

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

What’s in it to lose? Nothing because by doing so it can help to reduce the government welfare spending at the same time helping someone to at least make ends meet. Therefore, raising the minimum wage will help people to take of their family basic needs such as good nutritious food, instead of the unhealthy food, health assurance for them to go to the doctor and a place to stay. People that work minimum wages not always able to afford their basic needs. They sometimes prone to sickness because of their unhealthy lifestyle and with no health assurance they won’t be able to afford to go the doctor or their

An increase in the minimum wage would push companies to take this route as it becomes more and more profitable to them. The end result of all of this would be a suddenly increased level of unemployment bound to become subsequent with an increase in government-funded welfare expenses, weakening the economy even more.

Minimum wage is a highly controversial topic in the U.S. everyone would like to be paid a little bit more but do people even stop for a second and think about the consequences of raising pay. Economic failure, poverty increase, housing price increase, layoff increase, and hour decrease. There are also many more terrible things that are country can't handle if we were to raise the minimum wage.

Though many people, including myself, believe that the minimum wage should be increased, 1 in 5 Americans support the decision to leave federal minimum wage at $7.25. Those who support the current minimum wage argue that, instead of creating more opportunity for jobs, raising minimum wage will cause layoffs to skyrocket, thus increasing unemployment. For example, when weighing the pros and cons of raising minimum wage, Chad Halvorson, CEO and founder of When I Work, states, “If an employer has a tight compensation budget and the minimum wage is raised, it means they can no longer compensate the same number of employees at a higher rate and must make layoffs to remain within budget” (Chad Halvorson).

It is hard to think about, but the lives that are touched the most by a low minimum wage are often children. These children also have less time with their parents because their parents will often have to work overtime or several jobs to make ends meet. If the minimum wage were to go up, parents could provide more for their children, but it can 't

The push for higher federal requirements for the minimum wage in the United States, as a means of combatting income inequality, have remained a highly debated topic of discussion over the course of many years in the United States. On one side of this debate you have more progressive economists who believe that if minimum wage is increased the standards of living for many minimum wage employees will be improved, thus spurring economic prosperity for this class of workers and helping to bridge the gap in income inequality. On the other side of the spectrum you have more conservative economists who believe that with an increase in minimum wage there is also an increase in the number of unemployed workers along with a plethora of other downsides due. There is also economic findings that verify the belief that minimum wage laws also discriminate against unskilled workers in favor of skilled workers, and the most serious amount of discrimination takes place among minority communities. It would certainly eliminate jobs. By demanding that business pay workers more, it will in turn force them to hire less workers in order to keep up with their new payroll costs which in turn would further the migration of jobs from humans towards automation. In theory the minimum wage hike would definitely benefit workers who would receive that wage, but for those workers who are fired and would become unemployed due to the wage hike, it aches their economic shortcomings evermore. Increasing minimum

Low-skilled workers struggle with unemployment and poverty when a minimum wage hike hits, but in their mind they think they are just making more money. In 1981 the commission wrote an analysis over the job loss effects (Kosters 1). It proved that more job loss occurred when the minimum wage rose. A minimum wage hike is the worst way to get the lower class out of poverty (Sabia 2). The higher the prices are then the harder it

If the government decides to raise the minimum wage it can affect workers in companies that has minimum wage employers. According to "Measuring the Full Impact of Minimum and Living Wage Laws," “Employees who are working just above minimum wage may feel it is unfair that minimum wage employees are receiving a raise, especially if no one else is getting a raise. When minimum wage employees receive an increase in pay and no one else in the company does, this can cause a drop in company morale.” Furthermore because of minimum wage increase it will result in higher prices for consumers because it must be paid by someone. Not only will raising minimum wage increase payroll costs, but it will the increase all others’ wages as well. According to The 2012 Wilson review noted: A 2004 “review of more than 20 minimum wage studies looking at price effects found that a 10 percent increase in the U.S. minimum wage raises food prices by up to 4

Everything would be in higher cost, especially for businesses, in Seattle Rick Ungar states, many restaurants from Seattle are closing do to government wage hike It’s not only effecting several state, it would affect the whole United States, that’s one critical reason why we shouldn’t raise minimum-wage. The higher the raise, the less people would get unemployed because it would be very difficult for a business to pay their employees, another reason is shipping, and most of our products get shipped to us meaning that food would cost us a lot of money. So if going to a restaurant serving freshly food would cost us double the amount than what we paid for before. Many things could happen if minimum wage gets a higher raise, our lives would be much difficult. It concerns me that Higher minimum wage could change our live styles by everything being so

Increasing minimum wage in America would give most people a chance of having a better standard of living. Many people have become casualties of minimum wage because it is so low that people can barely live off of this low pay. This has happened because smaller businesses do not have the money to increase their employee 's’ monthly pay, thus eating away at company profits. Therefore, people should take into consideration of those making minimum wage, and having to support a family.

Raising minimum wage will force businesses to lay off employees. That in turn will raise unemployment levels. Statistically, a projection from the Congressional Budget Office says that an increase in minimum wage from $7.25 to $10.10 would lose 500,000 jobs. America’s ultimate goal for the past few years, presumably is to lower unemployment rates, and after all the progress that already has been made, it wouldn’t make any sense to go backwards. An example of this is shown in a survey of over 1,200 businesses and human resource professionals. According to the survey 38% of employees who pay minimum wage would lay off employees if the wage was raised, and 54% would decrease their hiring

The CBO’s report was not all positive, however. While raising the minimum wage has some upside, there are also potential downfalls. The main potential negative impact of raising the minimum wage is the loss of close to 500,000 jobs, which comes out to around 0.3% decrease in employment. The job losses could occur as a result of higher wages placing a greater strain on companies, which could lead to cutting jobs, reducing employee hours, and other methods to save the company money. The CBO reported that this number is not a definite, and that 500,000 may be an overestimate or could be a low ball and job losses could get as high as 1 million.

When a higher minimum wage is enacted (raising the price floor on the price of labor) different things may happen. There will be an increase in demand for jobs due to the higher wage and a decrease in supply of jobs due to the higher wage or there will be a surplus of laborers and a deficit of available jobs. With the higher wages, some individuals will lose their jobs because the employer will have to cut costs to offset the increase in pay. Unfortunately, this will lead to an employee taking on a heavier work load

The most affected segment of the economy by raising the minimum wage is small businesses. Small businesses will quickly dwindle away as a result of raising of the national minimum wage. As an example consider a small pizza shop. An increase in the minimum wage of 1 dollar an hour adds $16,000 to labor costs. Going to 15 dollars an hour adds $128,000 to labor costs, almost 3 times the take-home pay of the owners. This money could be money that is going to be taken straight out of the owner's pocket, affecting their family, business, and livelihood. Ask yourself how one of the 5 million small businesses with fewer than 10 workers would handle this, they can’t. More realistically the owners won’t absorb the increase, the increase will cause people to get laid off. If a pizza shop has 17 employees who all work two to three days a week. These businesses can easily decrease to ten or eleven people who have to work harder and more frequently. This will cause people to lose their jobs which