The Positive and Negative Effects of Raising Minimum Wage

My topic of interest is the effects of raising minimum wage in the U.S. Minimum wage is defined as the lowest wage permitted by law or by special agreement. In 1938, President Roosevelt signed a bill called the Fair Labor Standards Act of 1938, which set the minimum wage at $0.25. Although, overtime inflation devalued the amount of the dollar so it was raised there on. After raising the minimum wage the cost of living would keep going up every year. Also, currently advocates are arguing that the living wage should be 125% above the poverty line so that full time workers can afford a living.

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.

Minimum wage has always been a controversial issue. Many politicians use the argument of minimum wage for their own political propaganda. Some may argue minimum wage should be raised, while others believe it will have detrimental effects on our economy if it is raised. Surprising to most people, minimum wage earners make up only a small percent of American workers. According to the Bureau of Labor Statistics, minimum wage workers make up about 2.8% of all workers in America. “The majority of minimum wage workers are between the ages of 16 and 24. These are high school and college students” (Sherk 2). But high school and college students are not the entire percentage of minimum wage earners. When minimum

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

Minimum Wage Minimum wage has plagued a majority of teens and young adults for years and has never truly let up on them. Minimum wage is a huge part of how Americans live our lives. Many sources used in this paper were U.S News Articles and get information from a chief economist. Minimum wage should be increased because people want to have better lives than they have now which means that they are really fighting big government reps because they need to get better support from people to help increase minimum wage for their own lives. Minimum wage affects many Americans and how they can continue to make a living or how they live their lives.

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

Mike Durant once said, “Making it more expensive to create new jobs is a perfect way to guarantee fewer of them.” The recent, “Raise the Wage” campaigns have sparked an interest in many low-wage workers. However, those who support this initiative are unaware of the economic problems that will arise if this is successful. Several cities have already raised their minimum wages and some, like Seattle, are raising it as high as $15 per hour. Currently, supporters of this campaign argue that the government should implement this increase federally. However, doing so will have broad and adverse financial implications. Ever since the Great Depression, the minimum wage has been in effect — to reduce poverty and solidify that employees

A minimum-wage increase would put billions of dollars into the U.S. economy, benefiting businesses. It may not result in a surplus, but it will benefit the economy. Workers who are affected in any way by the minimum-wage being raised even to just twelve dollars an hour would see nearly eighty billion dollars in increased earnings over the next five years. Because low-wage workers tend to spend increased earnings locally on basic necessities, this will benefit businesses that rely on consumer spending. It still won’t come close to the equilibrium price, but it will help. The minimum wage last year was twenty-four percent below the level it was just about fifty years ago despite the fact that American productivity has more than doubled over that period and low-wage workers now have much more experience and education than they did back then. Now it’s the time to address this weakness in the minimum wage by raising it and lifting the earnings of low-wage

Today most jobs require a college degree, which costs quite a bit of money. Many people get part time jobs throughout high school and college in order to save up and pay to get a college education. If many people lost their jobs due to minimum wage being raised then it would be harder for them to afford to go to college, which may result in less people getting higher education. “A 2012 analysis of the New York State minimum wage increase from $5.15 to $6.75 per hour found that 20.2 to 21.8 percent reduction in the employment of younger less-educated people” (Cato Institute). This was just $1.60, imagine raising it it another $10.00. That rate would most likely double, if not triple. Many low-skilled and uneducated workers would most likely either lose their jobs or make it harder for them to get

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

Even though Ms.Steele considers the down fall of raising minimum wage, Mr.Knight provides clear evidence that raising minimum wage would help the America's economy.A 2011 study showed that increasing minimum wage lead to higher consumer spending.Another study showed that in the first six months of 2014 states that increased minimum wage, increased in jobs also.Last but not least, in 2014 University of Massachusetts Ameherst found that increasing minimum wage would lift 4.5 million Americans out of poverty and 3.5 million from food stamps.

“When’s our next meal?” asked a local eleven-year old boy to his mother, who works three jobs to provide for her four children. “I don’t know.” she responded back. Unfortunately, this is reality for some people in America. Despite the stereotype, the majority of people getting by on minimum wage are not teenagers in high school working part-time, but adults working full-time, often multiple jobs, to sustain their family. Raising the minimum wage would help people in need get out of poverty (and thus reduce inequality and help them afford basic essentials), spur economic growth and reduce federal spending, and keep up with inflation and productivity gains.

Nevertheless, there is still the argument that raising the minimum wage will impact the unemployment rate negatively (Roberts). One concerns are that business may not have the necessary assets to pay their workers anymore than the current $7.25 an hour wage. Another concern is that a portion of businesses rely on cheap labor so that their profit margins are greater (Smith). Raising the minimum wage to $9.00 an hour various employers are forced to lay off workers, which increases the unemployment rate and hinders the economic growth. Furthermore, with people’s pay being increased they are now able to afford the current demands, which can cause prices of the demands to increase. Teenagers are also negatively impacted due to the increase of minimum wage because the demand for jobs will rise and employers will be more willing to higher an adult versus the teenagers (“Raising the Minimum”). Additionally, when a business is required to abide by the national minimum wage, there is a sense of government control over businesses. The United States offers a free market so businesses enjoy the luxury of being able to make their own choices. Businesses have the right to choose what they would like to pay their workers, but once the new minimum wage is set they will not be able to pay below that amount. A small business with 5 to 20 employees will not experience a noticeable impact from a

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

Many citizens in the U.S. have struggled living with minimum wage and making a living for decades. Issues involving poverty, inflation, inability to pay bills, taking care of their family and hard labor are just some of the negatives that relate to minimum wage. People have gone as far as working two jobs to maintain stability and be able to take care of themselves and others as well. However, many officials refuse to raise the wage due to the decrease in jobs, the inability to decrease inflation and the raise of living in their state. What are the pros and cons of raising minimum wage? Will it be more beneficial than harm if the law is passed? The history of minimum wage provides a broad prospective as far as where it started and the reasons behind the laws of minimum wage. Many say that it can bring a toll to the budget and cause more issues with the inability of others to even receive jobs. The minimum wage should be raised due to conflicts with living and maintaining stability. As far as minimum wage concerns, there