Article Rebuttal: Minimum Wage Over the years there has been much debate about raising the federal minimum wage. Some states have taken it upon themselves to set higher minimum wages than the federal minimum wage, because of the lack of action by congress. The supporters of the raising of the federal minimum wage have been more vocal lately. This is especially true since studies have shown, that the gap has grown between the wealthier population, and the middle class. Recently President Obama, because of the lack of effort and action by congress, has used executive action to implement the raising of the federal minimum wage to $10.10 an hour for new federal contracts, effective 2015. This, naturally, has brought out commentary, studies that support and oppose this, as well as predictions that are totally opposite of each other. (Davis, S.) The non-partisan Congressional Budget Office (CBO) examined the impact of raising the minimum wage to two levels, $9.00 and $10.00 an hour. On February 18, 2013 the CBO report concluded that at $9.00 300,000 workers’ wages would rise over the poverty line; however 100,000 jobs would be eliminated by employers to maintain profitability. The impact of a $10.10 an hour minimum wage on these numbers would be 900,000 workers moving above the poverty line while 500,000 jobs would be eliminated. Numerically this seems to support the lower wage. The spokesman for House Speaker John Boehner, a Republican, said, in part “raising the mandatory minimum wage may help some but there are costs associated with this, such as fewer people working”. He also said, the country should be focusing on creating and not destroying jobs. (Davis, S.; Furman, J., and Stevenson, B.) On February 19, 2014 the White House and ... ... middle of paper ... ...ary 19, 2014) CBO: Minimum, wage hike may cost 500,000 jobs. USA Today, p.3A Furman, J., and Stevenson, B. (2014). Congressional Budget Office Report Finds Minimum Wage Lifts Wages for 16.5 Million Workers. Retrieved from http://www.whitehouse.gov/blog/2014/02/18/congressional-budget-office-report-minimum-wage-confirms-consensus-views-beneficiari Witcover, J. (2014, February 21). Wealth inequality contributes to enduring 'class warfare' in politics. Chicago Tribune McCambridge, R. (2013). Walmart “Offended” by Pushback on Charity Aimed at Walmart Employees. Retrieved from http://www.nonprofitquarterly.org Raising Minimum Wage for Fast Food Jobs Not a Problem. (2014). Retrieved from http://www.drudge.com/news/176267/raising-minimum-wage-fast-food-jobs-not Opinion Line (2014, February 20, 2014) (Is Minimum wage hike loss for jobs or gain for poor? USA Today, Page 11A)
The United States minimum wage is not indexed to inflation. Due to this fact, the purchasing power of minimum wage falls as the price of consumer goods increases. The current hourly minimum wage is set at $7.25, however many states do pay above this rate. One example of this is in Michigan, the current hourly minimum wage is $7.40. The last time a change occurred to raise minimum wage was in 2009. President Obama has put out a proposal that is designed to raise the federally required hourly minimum wage to $10.10 in 2015. The public opinion of this proposal is all over the board ranging from a positive outlook to a negative one. Some of the negative remarks are that it would dampen the economy and shrink the hiring done by small businesses. “The Household Survival Budget for the average New Jersey family of four is $58,500 and for a single adult is $25,368 in 2010. These numbers highl...
In this article, James Dorn and David Cooper argue whether raising the federal minimum wage will help or hurt low-wage workers. James Dorn, Vice President of Academic Affairs at the Cato Institute, argues that raising the federal minimum wage would hurt low-wage workers by reducing job opportunities and raising prices. Dorn also states that the federal minimum wage is responsible for high unemployment among teenagers and minorities and lower productivity among low-wage workers. David Cooper, an analyst from the Economic Policy Institute, argues that the federal minimum wage is not a living wage and that raising the minimum wage doesn’t have a significant effect on employment. Cooper also states that eighty percent of low-wage workers are at least twenty years old and that eighty-five percent of small businesses already pay their employees more than the minimum
Throughout the decade, a continuous firing debate still remains, whether to raise the minimum wage or keep as it is. People believe that raising the minimum wage can hurt the economy. More will lose jobs than gain. Though all are true, the amount of poverty shown throughout the decades are jaw dropping. That is in fact one of the leading factors. As there is yin and yang, the demand for a higher minimum wage is no coincidence or selfishness as others perceive as is. The poverty shown throughout the decade is deadly prominent. Minimum wage should be raised as people are not gaining enough money compared to the past, despite with more education, too many low quality jobs, “in active” unemployment are outcasted from the statistics, and finding jobs is more difficult than it was decades ago.
Currently, in the United States, the federal minimum wage has been $7.25 for the past six years; however, in 1938 when it first became a law, it was only $0.25. In the United States the federal minimum wage has been raised 22 times since 1938 by a significant amount due to changes in the economy. Minimum wage was created to help America in poverty and consumer power purchasing, but studies have shown that minimum wage increases do not reduce poverty. By increasing the minimum wage, it “will lift some families out of poverty, while other low-skilled workers may lose their jobs, which reduces their income and drops their families into poverty” (Wilson 4). When increasing minimum wage low-skilled, workers living in poor families,
The people, who are for raising the minimum wage, are people who think that the reason for poverty is because of the minimum wage not being high enough. The first standard minimum wage is formed under the "Fair Labor Standards Act of 1938, the nationwide minimum wage was designed to lift millions of American workers out of poverty and to stimulate the economy"(Wittner). Today the people that are in favor of raising minimum wage believe that there should be another "Fair Labor Standards Act" to raise the national minimum wage to ten dollars and seventy-fo...
Over the years the cost of living has been on the rise. Therefore, it is only right for minimum wage to increase as the cost of living increases. Many states and even some individual cities have taken the first steps toward raising the minimum wage. States like Washington and cities like San Francisco have already raised their minimum wage above the federal minimum wage. This is a very good start as it is becoming harder and harder for Americans to start and take care of their families. We need more states and cities to follow their lead some more Americans can feel more financially stable. This will make a better America for us all.
Many people against raising the minimum wage create arguments such as, “it will cause inflation”, or, “ it will result in job loss.” Not only are these arguments terribly untrue, they also cause a sense of panic towards the majority working-class. Since 1938, the federal minimum wage has been increased 22 times. For more than 75 years, real GDP per capita has consistently increased, even when the wage has been
About eight million Americans go to work every day, yet they are still living below the poverty line (Camden and Stern). More than one million of them are retail workers. If the minimum wage was to escalate, 734,075 people would be lifted out of poverty. Also the 769,191 people that are living on or near the poverty line would see their incomes go above it by 150 percent. These workers are struggling to provide basic necessities for their family and themselves. If minimum wage was increased poverty could be reduced. Most families are relying on government assistance to provide things such as food by using an EBT food stamp card and Medicaid because they are making minimum wage. Also if a minimum wage worker is only making $5.15 per hour, it will be impossible trying to afford health insurance. Sometimes the benefits workers receive don’t always cov...
Hamermesh, Daniel S. “President Obama And The Minimum Wage—A Politico-Economic Bargain.” Intereconomics/Review Of European Economic Policy 48.2 (2013): 131-132. EconLit. Web. 24 Oct. 2013
In the United States, there has been a big debate on minimum wage between the two main parties known as the democratic and republican parties. First of all, the main concern since 2009 is that the minimum wage has been of $9.00 dollars and many liberals and a few republicans believe that it should be raised to $15 dollars. In the last couple years, it has been argued that the minimum wage is not enough to meet ends meet in the United States. This topic regarding the raise of the minimum wage is important for a few reasons. First, democrats believe that the minimum wage today is no enough to help people with their bills, or to help them have a better life. Therefore, they want to raise the minimum wage to $15 dollars in order to help these people
Since its inception, the minimum wage has been a hotbed for debate. If today’s leaders could manage to increase minimum wage, millions of families would benefit.
The minimum wage being too low has been a public issue in America for generations. Basically, the debate includes two different opinions. Firstly, people who want to raise the minimum wage, and second, people who would rather is stay the same. The overwhelming majority of liberals are on the side that favors a raise. Additionally, a somewhat smaller proportion of conservatives favor the change as well, but for different reasons. The liberal opinion on raising the minimum wage is based on the idea that putting more money in the people’s pockets, will stimulate the economy, and decrease poverty. The problem that conservatives and liberals alike have with this, is that a few direct consequences are proven to apply when raising wages. Some proposed consequences include unemployment, inflation, and unfairness to higher educated people. Another main point is that raising the minimum wage is thought to helps small business by increasing worker satisfaction. This issue of minimum wage has become increasingly popular and important in current times, as president Obama has proposed the idea of raising the minimum wage of contract workers to 10.10$ per hour (about a 30% increase from the current 7.25$ per hour minimum wage). A large number of people consider this wage hike unnecessary due to the fact that today’s value of minimum is higher than it has ever been since the 80’s, and because the wage hike comes at too high of a cost. All things considered, the issue of raising minimum wage is not a battle of political parties and their agendas, its really a debate between everyone.
Minimum wage is a topic that has been popping up since the 1980s. From whether we should lower it, or even raise it, but now in the 2000s minimum wage has been the center of attention more than ever. There are two sides to this topic of minimum wage; whether it creates more jobs or does not create jobs. Those who argue that raising minimum wage will create more jobs will have a rebuttal which is that it does not only cause the loss of jobs but that it would make things much worse and vice versa for those arguing raising minimum wage will cause loss of jobs. There will be two authors representing opposite views, Nicholas Johnson supporting minimum wage will not cost jobs with his article “ Evidence Shows Raising Minimum Wage Hasn’t Cost Jobs”
Bernstein, Jared. “Would Raising the Minimum Wage Harm the Economy?” The CQ Researcher 16 Dec. 2005:1069.
A sensitive topic for many Americans is their income. Many people’s income relies on minimum wage. In 2012, 3.6 million people received an hourly pay at or below minimum wage. There is an ongoing debate in government as to what the minimum wage should be. Stuck at $7.25, Obama has suggested raising the minimum wage to $9.00. Depending on a person’s perspective, raising minimum wage could be positive or negative. Minimum wage has the ability to change lives, and change the economy. Small businesses and unemployment, teenage demographics, and the cost of civilian goods would be most affected.The only mystery is whether things would change for the better or for the worse.