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Positive and negative effects of the new minimum wages
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Minimum Wage Raise in Seattle
After the protest in New York City, the issue of raising the minimum wage has come up once again. Seattle is spearheading this cause with a proposal of raising the minimum wage to $15 per hour. This will help minimum wage workers a great deal by increasing their income. However, there are concern that this move could hurt certain businesses, which can lead to higher unemployment and contraction of the economy. The ethical issue surfaced as this will benefit some at the expense of other.
Washington has the nation’s highest minimum wage at $9.19 per hour. Seattle is set to raise the minimum wage even further, to $15 per hour. More than fifteen millions people work for a minimum wage, which lead to about fifteen thousand dollars a year. These workers would earn a lilt bit below the poverty line for a family of two (Blankinship). Seattle Mayor Ed Murray is pushing this effort since December of last year. Some council members, like Kshama Sawant of the Socialist Party, also support this measure. The federal minimum wage is currently set at $7.25 an hour, with President Obama’s plans to push it to $10.10 an hour (Weissman). Faster workers went on strike in many cities to demand better pay and right to unionize. $15 an hour is part of their demand when they protested in August of 2013 across fifty cities. In this current economy, people ages 25 to 54 are the largest group to hold fast food jobs. Since these jobs pay so little, these workers qualified and used $243 billion in public benefit per year (Covert). Although this is a popular policy, economists and journalists are conflicted in their analysis of the effect of increasing the minimum wage. Some economists found the minimum wage hikes lead to small j...
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...ect of a higher minimum wage. Economists and businesses analyst should observe the change in Seattle when this policy set in.
Works Cited
Weissmann, Jordan. "Seattle Is Poised to Raise Its Minimum Wage to $15. Goodbye, Seattle.." Slate Magazine. N.p., 2 May 2014. Web. 6 May 2014. .
Covert, Bryce. "Seattle’s Mayor Is Pushing For A $15 Minimum Wage." ThinkProgress RSS. N.p., 6 Jan. 2014. Web. 6 May 2014. .
Taibi, Catherine. "There's A New Push To Raise Seattle's Minimum Wage To $15 Per Hour." The Huffington Post. TheHuffingtonPost.com, 19 Aug. 2013. Web. 6 May 2014. .
Poverty continues to grow in America. The average minimum wage in the United States is $7.35 an hour- far too low in today’s society. Key expenses, for example, gas and housing prices, have gone up significantly since the minimum wage was last changed in 2007 (Wagner 52). The laws creating the minimum wage were intended to improve the standard of living and decrease poverty. Raising minimum wage is a vital step in decreasing poverty and giving every family the opportunity to survive and succeed. Millions of hard-working Americans are below the poverty line and need an increase in pay. Minimum wage must be raised because it will diminish poverty and assist the working class to support their families.
Dudley. San Diego: Greenhaven Press, 2005. Opposing Viewpoints. Rpt. From “Raise the Minimum Wage to $10 in 2010.” Let Justice Roll Living Wage Campaign. 2009. Opposing Viewpoints in Context. Web. 17 Nov. 2013.
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
Davidson, Paul. "13 States Raising Pay for Minimum-wage Workers." USA Today. Gannett, 30 Dec. 2013. Web. 07 May 2014.
Gitterman, Daniel P. “Remaking A Bargain: The Political Logic Of The Minimum Wage In The United States.” Poverty And Public Policy 5.1 (2013): 3-36. EconLit. Web. 24 Oct. 2013.
A federal minimum wage was first set in 1938. The first minimum wage was just 25 cents an hour in 1938. Can you imagine surviving off of 25 cents an hour? Now just over 70 years later the federal minimum wage is now 7.25. The question at hand is the federal minimum wage enough to meet the minimum requirement for a good, happy and healthy life? Some states and cities say no. While a select few states and cities have mirrored the federal minimum wage of 7.25, some states have placed their state or city/county minimum wage marginally higher than the federal minimum wage. So why would some states prefer to have a higher level than required by the federal minimum wage when some state have decided to match or even go below the federal minimum wage level. The answer to this question lies within each state city and county and how they perceive the cost of living in the presiding area. Minimum wage needs a makeover in America despite some of the negative effects that may come along with it. This paper will explore the reasons behind federal and state minimum wages and why some of them differ among states counties and cities across America.
Educated Americans and researchers biggest concern is that their minimum wage proposal is going to negatively affect our economy. For example, they predict that their wage is part of the labor cycle and if it increases it will raise prices for customers. In Brian Jencunas article, he expresses that, “Virtually anyone can do these jobs with very little training. This means the supply of potential labor exceeds the demand, making sala...
All around there are people who argue about minimum wage. There are people who argue that the rate per hour should be raised. There are also people who argue that the rate per hour should be lowered. There are also people who argue the rate per hour is fine how it is and that it should stay the same. Should the rate really be raised, or should it instead be lowered? Why should the rate be raised, or why should it be lowered? What will happen if we lower the rate of minimum wage or what will happen if we raise the rate of minimum wage? What are minimum wage jobs anyway, or what is minimum wage? Minimum wage is the lowest amount of money per hour that an employer can pay their employees. In the United States, the federal rate of minimum wage is $7.25 an hour. Since this specific rate was set for every state in the United States, several of the states have raised their rate of minimum wage. Ohio is one of those several states to have changed their rate of minimum wage. At the moment, in the year 2015, the rate of minimum wage is $8.10 an hour. If the rate in Ohio is already above federal rate, why should it need to be changed anymore? The rate of minimum wage should not be raised; it should instead stay at the same rate. These jobs are not professional jobs, they are only starter jobs, if the rate of minimum wage is raised it will hurt people while trying to help others, also if the rate is raised above $8.10 an hour the surrounding states will be affected.
On April 4, 2016, California Governor Jerry Brown signed a bill that would significantly raise the minimum wage for California workers. By 2022, California 's workers will receive a minimum wage of $15 per hour (Kurzweil, Anthony, Sara Welch, and Kareen Wynter). Brown signed this bill because employees cannot live above the poverty line if their minimum wage is not proportional to the cost of living (Scheiber, Noam, and Ian Lovett). The purpose of the minimum wage is to ensure that workers can provide essential amenities for themselves and their families. Many economists have been in a debate about this topic with mixed feelings, whether increasing the minimum wage would be a reasonable legislation or not. For most average American workers, at first, the idea of raising their salaries might make them feel thrilled and optimistic. However, increasing the minimum wage will have its pros and cons effect on the economy. Despite numerous of arguments from both sides, a compromise can be met regarding minimum wage.
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,
Nayak, Rajesh, and Paul Sonn. Restoring the Minimum Wage for America’s Tipped Workers. Rep. National Employment Law Project, 2009. Web. 30 Oct. 2014. .
Wittner, Lawrence. "The Minimum Wage Should Be Raised." The Huffington Post. TheHuffingtonPost.com, 10 Nov. 2013. Web. 12 Mar. 2014.
Hanauer, Nick. “The Capitalist Case for a $15 minimum wage” Bloomberg News. 19 June 2013.
Presently, workers in the fast food and minimum wage jobs seek respect and an increase in wages as it is a sector of the food industry that is underrepresented by unions. As cost of living increases in cities nationwide and the government subsidizes underpaid employees with welfare funds, organizations such as Real Food Real Workers and the Fight for $15 are demanding a raise in the minimum wage, particularly for food workers. Similarly to the food workers at UNC Chapel Hill, many minimum wage workers in the fast food industry are women and minorities, sectors of the labor pool already marginalized by wage disparity. The Fight for 15 movement has recently gained momentum in raising the minimum wage to $15 in California, New York, Seattle and the District of Columbia, and this year Arizona, Colorado, Maine, and Washington state voted to increase the minimum wage as well. In the 21 states where the minimum wage is still as low as $7.25, s minimum wage increase movement should partner with other organizations from outside labor unions such as women 's rights organizations and organizations similar to the BSM, including mass participation of solidarity with college campuses, to make a substantial statement about their work
This essay will mainly focus on employers and employees. The graph below shows that an imposition of a minimum wage would likely cause an increase in unemployment. In this case, because the NLW is higher, it is forecasted to have a negative impact on employment