What Happens When Raising The Minimum Wage

Raising the minimum wage could help get money into the pockets of the hard workers of America thus put money back into the economy. Although raising the minimum wage could have consequences in inflation, it would be better for everyone, to close the payment gap in-between the higher class and the lower class, as the gap is huge. On average CEOs make nine-hundred-thirty-three times more than average minimum wage worker, going from a salary of $15,080 to $14,070,000. Raising the minimum wage could get many people off food stamps, saving the government almost four billion dollars a year, and helping 3.5 million Americans get on their feet to look for jobs that will actually be able to provide them economic security getting them out of poverty (10 Reasons to Raise the Minimum Wage). A complete push to fifteen dollars an hour for minimum wage jobs is a stretch, but a continuous growth towards the whole fifteen dollars would be

The main reason raising the minimum wage radically would kill the economy is the pressure it would place on small businesses. According to TheWashingtonPost.com article, Small Businesses are the backbone of the economy. They also cited that many studies from the U.S. Small Business Administration show small firms employ just

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

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

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

If the minimum wage rises, it will mean that less jobs will be available. There will be less jobs due to the company’s efforts to stabilize their income. The companies will have to spend more money on the wage of their employees and some companies don’t have the ability to do this which will lead to the increase of employees getting fired and being laid off. If this occurs, major companies will replace human employees with computers and technology. Things such as kiosks and and machinery will replace the common jobs that low-income people are most wanted for. Making this change will benefit companies such as McDonalds because it will save them more than $16,000 per cashier. Either way, if they keep employees it is only for one reason and that is because they are experienced. The more experience an employee is, the greater they have of a chance to stay in their position. According to the “What’s the Right Minimum Wage?” by the PragerU channel on Youtube, in order to be accepted, you will have to have great knowledge of

Increasing minimum wage will great be of beneficial to nearly 28 million workers among the nation. It will also insist businesses as well, by increasing the wages this will cause additional money to be in individuals’ pockets, in which they will put back into the economy by purchasing goods and services into their populations. Minimum wage has been a hot seat for debate. If the leaders in this current society could manage to raise minimum wage, there would be countless of families that could benefit from it.

Raising the minimum wage can result in job losses due to lower profits for businesses. It can also potentially decrease employee hours by changing them from full time to part time. Additionally, it may reduce the full time benefits that they receive. If this were to happen, then the employees affected will actually be earning less than they did before the increase. For example, from the Article Maximum Divide on Minimum Wage (Mejeur, 2014), they state, “Labor costs are the largest share of the budget Mandatory hourly wages mean that businesses will be forced to cut jobs or reduce hours to maintain their bottom line”. This shows that when businesses are forced to spend more money, they lose profits that could have helped create more jobs and company expansion. If they are tied back due to be forced to increase wages without economic justification, then companies in America will not be improving, but rather just surviving. Since the overall goal for most businesses is to improve profits and enlarge their businesses, it is safe to assume that, in order for companies to survive, that the minimum wage needs to stay the same unless there is viable economic justification to do so. Artificially being forced to increase the minimum wage due to a government sanction or mandate is ill advised. If an increase in wage needs to be implemented, then the government needs to create policies that aid economic expansion for companies to be able to afford it. These policies could

From an economic perspective, one can see that raising the minimum wage to $15 per hour will cause firms to decrease employment. If the cost of each worker increases, firms will not be able to hold as many workers and will be forced to lay people off or suffer a loss in profit. The problem with raising the minimum wage is that it creates a downward rigid market and causes firms to either sell its goods and services at a higher cost or lay off workers to balance out the increase in cost. Creating a market where wage is not flexible and is above the real market equilibrium means that firms will simply decrease employment and increase prices. This kind of unemployment is known as

The fight for a higher minimum wage has been going on for a long time. People are demanding it to be $15 an hour. Although raising the minimum wage seems like it would be amazing, there are a lot of negatives with it. With the economic theory, we can see the effects of raising minimum wage on the economy.

Minimum wage is one of the biggest problems here in California, there have been many debates on whether the minimum wage should increase to $15 an hour or stay where it currently is. As of right now the minimum wage in California is $10.50 but will soon increase to $15 by 2022. In 2012 the minimum wage would have hit $21.72 if it had kept pace with the economy’s growth. Increasing the minimum wage will be great because it will help with many things. It will be beneficial for corporations and small businesses to expand their purchasing power. It will help families be more financially stable and lift more than 1 million people out of poverty. You might think it won't and it will make goods, gas prices, and increase house values, and the unemployment rate, but that’s the reason why the minimum wage was introduced Everyone in the working class will benefit from the increase of minimum wage.

When it comes to minimum wage there are multiple ways to explain it. One way is to see minimum wage as a tradeoff. Yes, people will have more money in their pocket, if they keep their jobs. Yet at the same time prices may rise because of employers being forced to pay more. Which of these two options is the less damaging to the economy? There is no perfect solution for the economy and minimum wage. There will always be something that hurts the economy while trying to save it. In a perfect world workers, employers, and the economy would all benefit equally.

Raising minimum wage forces business owners to reduce the number of jobs for the unskilled younger workers.This would be a problem due to the unskilled workers not getting the experience they need to advance up the ladder in that business. Also,  It would be harder for these unskilled workers to find minimum wage jobs to get them the  necessary skills they need to find a better paying job: “Raising the minimum wage reduces many workers’ job opportunities and working hours” (Sherk).  Obviously it would benefit some of the workers, but the majority of the people it would benefit are the ones with work experience.  “The higher the minimum wage is raised, the worse the effects on poor people” (Gould). Many business owners won’t have extra money to pay their employees, thus leading the business to fire the least skilled workers. This especially applies to small businesses that would go out of business if there was an increase in minimum wage. Ultimately it will come

Reports have shown that raising minimum wage from $7.25 an hour to $10.10 would add $22.1 billion net into the economy and create 85,000 new jobs in the next three years (Cooper). While that seems very good for the United States raising it would actually be worse. The Congressional Budget Office estimates that a minimum wage increase from $7.25 to $10.10 cause 500,000 jobs to be lost (CBO). This is due to the increase of cost to pay employees. For example, there was a survey of 1,213 business and human resource professionals. A staggering 38% of employers said they would have to let go employees if minimum wage increased (Kast 2014). It would cost businesses thousands of dollars more to pay the salaries which would mean less hours and less employees. From this information, one can infer that increasing the minimum wage may have some economic benefits, it is not worth the

The minimum wage being raised could have more negative effects on things you don’t really think of. New Jersey Governor, Chris Christie, does not think the minimum wage should be raised either. Christie says that raising the minimum wage can hurt small businesses. Businesses should not have to constantly tell people they are not able to hire someone because they cannot afford it if the minimum wage raises to $15 (Trugman, Jonathon). He also says that raising it to $15 and hour can cause groceries to become more expensive. If you think groceries are expensive