Inflation Essay

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Inflation is one of the main reasons for the minimum wage being at a low level. In the United States workers are earning less than they did in the seventies. Last year in the United States approximately three million people of the working class dropped below the national poverty level. Minimum wage laws are established by the federal and state governments to help balance out the amounts of money people earn. It prevents one person or persons from making all the money, and some making very little. The term income distribution is where everyone would earn the same amount of money. This is not something that could really happen because everyone has different levels of education and different trades. Minimum wage is a way to try to keep the income distribution fairly equal. The views on raising the minimum wage are very different from person to person. Minimum wage is basically a stepping stone for employers. It sets the least possible amount an employer can pay an employee. In a minimum wage model the quantity demanded is less than supplied labor. Minimum wage helps keep these two factors balanced. It is a very important number because it assures that everyone gets payed at least that. Employers cannot pay anyone less than that amount. It is against the law and a fine comes with it. Congress is against raising the minimum wage in fear of negative outcomes. Really only the government would feel the affects. Raising the minimum wage would help this economy greatly. It would help make more jobs attractive to people. This would be a tremendous help to some of the poverty levels in the united states. It would help with violence by allowing many more people to receive an education. Families could afford to send more children to scho... ... middle of paper ... ... is a lot of money, just because minimum wage will be raised. Another con would be that employers might hire fewer workers in the entry level jobs needed to begin a career. This means that many starter jobs will be taken away, only allowing jobs for the professional workers for a specific job type. This would affect the economy greatly, because there would be less jobs for lower and middle class Americans, and more jobs for the already rich community. Raising the minimum wage sure does have its pros and cons, but it is believed that the pros outnumber the cons tremendously. Overall, the minimum wage should be increased, and it is expected to increase sometime before 2020. The minimum wage is a hugely debated topic, and there is good points for both sides. In most Americans eyes, however, it would be extremely beneficial, and it may even end the current recession.

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