The Effects Of Raising The Minimum Wage

To begin, there is an extensive debate over whether if the U.S were to raise minimum wage, could it really help the working poor of low income families. Nancy Cook, in her article from the National Journal, “Why a Minimum-Wage Hike Can’t Help the Poor”, she points out that two thirds of around 100 surveys from 2007 had a negative effect and that it does more for the middle class than the lower one. (p.14). So, therefore, from her

One of the biggest political topics in today's society is the federal minimum wage and whether it should be raised or kept at where it is now at $7.25 an hour. Arguments could be made for both sides on whether it should be raised or left alone. The majority of minimum wage in today’s job market are unskilled positions. Minimum wage jobs were created for teenagers and colleges kids as a way to get into the workforce and to have a little extra money for themselves. It was not designed to be a wage for people to live on. Increasing the minimum wage would hurt the economy by hurting small businesses, a huge loss of jobs and it would increase the competition between teens and adults. Overall if the federal minimum wage is increased it will have many negative effects on the economy.

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.

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 benefits for an increase, then the disadvantages, and in the last paragraph, I will

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

Raising the federal minimum wage to $15 an hour can have detrimental effects on society. Some issues that may arise are increases in unemployment and small businesses not being able to handle the financial burden, which will lead into job benefit cuts. Furthermore, a rise in minimum wage will cause inflation and businesses to raise the prices of their goods and services. People purchasing power will continue to stay the same; the struggle to close the gap between products and services will not

l minimum wage has been one of the most talked about social issues since it was in was introduced in the year of 1938. To increase the federal minimum wage has pros as well as cons. I believe that the increase of minimum wage would not only give more people motivation but it can increase the livelihoods of individuals in poverty and strengthen business and the economy all at once.

The United States is able to maintain a favorable economy without using minimum wage laws according to critics. Those who oppose the increase think that the country would be better without minimum wage laws. According to the opponents, this country does not need to force a certain amount on a company and the free market will set proper wages (Learning). The natural market is powerful enough to maintain a good economy. A jobholder should need to work hard for a higher wage. Over time an employee should earn more pay not have his/her boss be forced to pay a certain value (Arnstrong). Hard work will earn them the wage that they deserve. Many people will lose their jobs if there were a raise. This will happen when the companies have people who aren't able to provide that value that they are paying for (Learning). So, by increasing wage of people who simply don't deserve it, many people will lose their jobs. Increasing wages will cause higher unemployment rates. By forcing companies to pay more than the work is worth, people may actually lose their jobs (Arnstrong). If an employer has to pay each employee more they may have to let people go. Minimum wage does not help with unemployment. Minimum wage only affects people already in the workforce not the people who are looking for jobs (Learning). People searching will not be helped from increased pay. It also makes it harder for a young person

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

Talks of increasing the minimum wage in the province of Quebec have been faced with stern resistance from business owners. The argument against raising the provincial minimum wage from $10.75/hour to $15.00/hour is that this action will have dire consequences on the economy of Quebec. Out of the many protestors, a significant portion are employers and small business owners. Similar to the argument made in the textbook, raising the minimum wage will result in losses for small businesses, and some may be unable to afford to pay their employees. Furthermore, large corporations may be dissuaded from opening branches in Quebec because of the cost of human resources. Long term effects of such an action could consist of higher dropout rates from high

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 federal government introduced in 1938 during one of America’s toughest time, the Great Depression. Minimum wage is the lowest hourly payment a person can be paid. Went it was implemented it was set at $0.25 per hour and now has been increased 22 times by Congress. The most recent increase was in 2009 when it was raised from $6.55 to $7.25 an hour (Hristos Doucouliagos and T.D. Stanley, "Publication Selection Bias in Minimum-Wage Research? A Meta-Regression Analysis," British Journal of Industrial Relations, June 2009). Some states feel that the federal minimum wage is too low to live on. They also say that higher minimum wage would help create jobs and grow the declining economy. Minimum wage is the primary cause of the wage inequality between the lower and middle class. Many

In a paper titled “Four Reasons Not to Increase the Minimum Wage,” the Cato Institute, a libertarian think tank, offers four empirically backed consequences of increasing the minimum wage; these consequences include: the loss of jobs, low skilled workers being disproportionally affected and priced out of the job market, a minimal effect on reducing poverty, and higher prices for goods. The paper compiles a number of studies to support these

Raising the minimum wage can be harmful to people who are supposed to be helped by the increasing of wage. Often seen as an effective way of giving raises to low income workers, it creates, like any price floor, a surplus. In the case of the given example, there would be a surplus of workers than there are employers would be willing to hire at the new minimum wage. So the answer is yes, there would be a change in the number of workers hired. Since employers would be “forced” to pay more per labor/hour, thus increasing the operational costs, the market price of goods and products would increase as well for them to keep the profits.

Congress enacted the federal minimum wage in 1938, during the Great Depression. Congress had two goals; keeping workers away from poverty and boosting consumer spending for economic recovery. Today, there is a debate, whether we should increase the minimum wage again. Increasing the minimum wage is useful for several reasons. First, the current minimum wage has failed to keep up with inflation. Second, a higher income level reduces employee turnover and increases efficiency and ultimately, raising the minimum wage does not reduce employment. Even with high unemployment rates, the minimum wage is useful for the economy.