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Disadvantages of raising the minimum wage
Impact of economic activities
Disadvantages of raising the minimum wage
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Minimum Wage
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.
Raising the minimum wage is a temporary fix to a long term problem. The direct problem at stake is not the minimum wage itself, it’s really the incom...
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...age gap, aiming for the easy way out is just not the right way of doing this. It’s not the American way of doing things. America was built upon principles of awarding the successful and working for wealth, not upon borderline socialism. The power to keep America’s economy strong is in the hands of the citizens, and should not be given up for a raise in minimum wage. If our federal minimum wages are in fact increased to what Obama wants the to be, (10.10$/hr.) then we as a country will experience inflation, stagnant increases in unemployment, loss of small business, increase in illegal immigration, and with little to gain. However, if we can push through to not increase the minimum wage, or even abolish it, America will continue to grow on it’s own and improve. The minimum wage is not something to fall back on, it’s something to spring forward from, a stepping stone.
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
Well, raising the minimum wage has both the pros and cons. Still, the fact that increasing the minimum wage nationwide would increase millions of workers’ earnings is deniable. I suppose that’s why some people advocate raising the minimum wage will grow the economy for everyone. In 2014, the president of the United States, Obama, called on the current Congress to raise the national minimum wage, which proves that Obama actually supports raising the minimum wage. ‘February 2014 Congressional Budget Office Report The Effects of a Minimum-Wage Increase on Employment and Family Income is the latest attempt to do so, in this response to Members of Congress with respect to an increase in the federal minimum wage from $7.25 to $10.10 per hour.’
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,
In recent years the minimum wage has been a heated topic. People want to hike it up to 15 dollars an hour which they call a living wage, while others just want to keep it the same. There are also others that suggest to bring the minimum wage to around $10.78 an hour, which should be around the minimum wage now if we account for inflation from the 1960’s. I agree with that to a certain point. We as a nation need to bring up the minimum wage only up to ten dollars so that less people are living in poverty, and not any higher so that states with smaller economies don 't crash and burn.
The minimum wage today has a lot of issues; some people say it is not enough to live comfortably. Many agree that there needs to be an increase in minimum wages and by doing that it can help with our issues of poverty. Statistics show that a worker who is full time and earning minimum wage makes only $15,080 a year, which is under the federal poverty line for a family of two. (Gitis, 2013) The problem with that is $15,080 is not a sufficient amount that a person can live and grow on. “A family of two can consist of a mother and son or daughter, father and son or ...
Minimum wage has been around for ages. Minimum wage employment was a temporary condition for people earning little payment until they moved on to a better paying job. These jobs helped build résumés, experiences, and skills for a better career. It has become the easiest way for people to receive easy pay. As years went on that idea began to demolish into a job that many families can get to survive and pay for their expenses. There have been many arguments going on, "Should minimum wage be raised or should it be lowered or eliminated altogether?" This action has its pros and cons. It can benefit many families as living cost has gone up, price for education is rising, and college students are in huge debts. It may increase poverty, but those
Raising the minimum will end up hurting Americans more than helping them. The people that are for raising minimum wage are people who believe that increasing minimum wage can help those people who are unskilled and need an income they can live on. Yet, raising minimum wage would do the opposite and make employers have to fire people who earn minimum wage, because they can't afford the higher wages. People need to realize that increasing the minimum wage would hurt people more than help them. In the end increasing minimum wage would result in some people being let go, for the reason, businesses can't afford paying them minimum wage anymore.
It is very difficult to live in America if you are living off of minimum wage, and many Americans are living off of it today. Raising minimum wages has its benefits like gaining more money to live better, but people do not see the down side of the increases in wages. With the increase in minimum wage, it also causes the cost of living to increase. How can this help the economy or help people? Minimum wages in America should not be increased because it will cause cost of living to increase, reduce employment, and cause businesses to lose money and workers.
Facts, do support the fact minimum wage should stay where they’re at because high school students are the largest portion of minimum wage. In fact, Drew Desilver states that 50.6% of the current minimum wage job employees are between 16-24 years old (par. 7). Knowing that the majority of these workers are teenagers that probably won’t keep these jobs forever makes me want to keep it as it is. Anthony Davis and James R. Harrigan from US News describes the situation being that a small portion of workers earns the minimum wage . They continue to say that the majority of these people lacks education (par. 4). So if we raised the minimum wage it would encourage many people to not further their education. Because of a minimum wage increase employers would struggle to keep their businesses open and hire people.
In this article Rex Huppke gives the argument against raising minimum wage. Huppke refers to raising minimum wage as “ like chipping away at a problem with a hammer when more precise tools are at hand.” The goal of minimum wage is to gain experience, education, and skills while first entering the workforce. The goal after that is to move up to a better paying job with the experience education, and knowledge learned. Allan Sanderson, a senior lecturer in the University of Chicago’s Department of Economics states that he would rather people have skills and improve on them. Sanderson and other economist and public policy experts are afraid of how bad the several consequences of raising minimum
(See Fortune) In his party, advocacy for any increase in the minimum is tantamount to heresy—like admitting to global warming—and should not even be considered as an option in as much as market forces can be trusted to determine wages, not the government in the marketplace. But Dr. Carson dared to go a step farther by proposing that the minimum wage should be indexed to account for inflation. Increases the minimum wage should be automatic so that they cannot be politicized; in which case we would never have this conversation again. The proposal to raise the federal minimum wage to $10.10 an hour languishes in Congress. However, a number of states have already committed to raising it to $15 an hour. Even some private companies have taken the initiative to increase the minimum wage on their own despite almost universal opposition to it by congressional Republicans. (See The Gazaette) How times have changed! The minimum wage, like maintaining and upgrading the infrastructure, used to be bipartisan
For many people in the United States, life is no more than a regular work cycle. Members of working class usually have a High School diploma and may work in a low skilled occupation or manual labor. Most of the enjoying age of this people is spent in working, as they don’t want their new once to have a life they struggling through. Therefore, this essay will argue that minimum wage should be increased federally to $15/hour by 2017. Firstly, if taxes touches the sky, why should the minimum wage be on the ground? Increasing minimum wages would also create new opportunities for education as the students wouldn’t have to work crazy hours. Likewise, many couples won’t have to work multiple jobs in order to manage the household. Lastly, it will lift
Many critics claim that that raising minimum wage increases unemployment, especially for unskilled workers, and harms small businesses, including grocery stores and restaurants. The argument declares that companies such as these rely mostly on unskilled workers for labor, and if the minimum wage increases, then their profits and, therefore, hiring would decline, creating a...
For the past three decades minimum wage has been seen to rise several times. Only helping some but more than anything harming most. So who are the ones feeling the effects? Certainly not the wealthy, it never is them, mainly it would be the working poor, unskilled and teenagers. Raising minimum wage would cripple the public even more than what it would actually help.
Companies and small business’s pay their employees hourly wages based on a minimum wage. Today in America we have many hard workers who are working for minimum wage which consists of $7.25 per hour. There are some businesses which believe all employees should be paid at minimum wage while other businesses pay well over minimum wage. Skills, attitude, responsibility and work ethic all affect how employers base employees hourly wage. When looking at the economy the government should not increase minimum wages, there are many factors that affect minimum wage such as elasticity of demand, and how education and skills can increase the minimum wage.