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Positive effects of minimum wage
Positive effects of increasing the minimum wage
Positive effects of increasing the minimum wage
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More Than a Worker Imagine working under poor conditions for over 40 hours a week to afford basic human necessities only to remain nothing more than a cog in a corporal machine seen unworthy of livable wages. While this may seem unrealistic, it proves as reality for many lower class Americans. Minimum wage has seen a drastic decline in relation to the inflation of living costs, an issue addressed in Lew Prince’s, “The American Dream Needs a Fair Minimum Wage”. In the article, Prince, a business owner, states, “... in 1979, the minimum wage was $2.90 -- that would be $9.50, adjusted for inflation in 2014 dollars”. Even with this information, many americans above the poverty level line argue against an increase in wages. Although opinions often …show more content…
An employer who pays his employees the bare minimum will not see the same appreciation and respect as an employer who pays his employees livable wages. Lew Prince points out the various benefits that have come with paying his workers above the federal minimum since his business began. He states, “We’ve outlasted 20-store local chain and numerous regional and national chains. Most of these companies paid their employees minimum wage or barely above. My creative, dedicated, and better-paid employees won this life-or-death struggle for us” (Prince). Their loyalty also benefits Prince in the fact that he has to pay very little for employee turnover and constant training costs that other businesses struggle with. What Prince and many other business owners alike gain from higher wages reflects only a portion of the nation that will prosper from this monumental economical …show more content…
“Workers Make Appeal to Taxpayers,” also follows Andrew Olson, a McDonald 's worker who makes $8.60 an hour, and his fiance who makes minimum wage in their experience under the poverty line. “Their salaries are so meager [...] that they rely on food stamps and Medicaid to get by,” says Kelly about Olson’s current living status, a lifestyle most Americans involuntarily live. Aside from the benefits wreaked by business owners and taxpayers, the workers living on poor salaries prove as the most positively and heavily affected; the three point nine percent of working citizens treated unfairly by big businesses. “Workers Make Appeal to Taxpayers” concludes with a quote from Olson, “Just because I work in fast food, does that mean I should have to just scrape by in
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
Great discoveries always begin with great questions. Barbara Ehrenreich asked two great questions, “how does anyone live on the wages available to the unskilled” and “how were the roughly four million women about to be booted into the labor market by welfare reform, going to make it on $6 to $7 an hour” (2001, p. 12). To answer the questions, Ehrenreich embarked upon a journey to discover for herself, whether she could match income to expense as a low-wage worker. In effect, Ehrenreich tested the fundamental premise of The Personal Responsibility and Work Opportunity Reconciliation Act, also known as welfare reform, in order to determine whether those individuals formerly on welfare and largely unskilled, could earn a living wage on the minimum wage.
Why should we be the ones to pay for someone to sit around at home? The answer is one simple word, welfare. There are many reasons why people mooch on welfare, rather than going out and working. The only jobs these people are qualified for are minimum wage jobs. As Barbara Ehrenreich, author of Nickel and Dimed, worked at minimum wage paying jobs and reported the hardships that people had to go through on a day-to-day basis. A critic responded by saying, “This is simply the case of an academic who is forced to get a real job…” Ehrenriech’s reasoning for joining the working-class is to report why people who mite be on welfare, continue to stay on welfare. Her reports show there are many hardships that go along with minimum waged jobs, in the areas of drug abuse, fatigue, the idea of invisibility, education and the American Dream.
The people that David Shipler interviewed are the type of people seen every day working at restaurants, Wal-Mart, and gas stations. They do not fit into the prejudice description of mooching welfare recipients. They are people on the edge of the poverty line that are affected by a multitude of issues that snowball into a lifetime of a constant debt and crisis. Shipler studies these working po...
Imagine waking up and regretting going to work not because you don’t love your job, but because you are facing injustices at your workplace. When we apply for a job we expect to get hired and when we do, we are always nervous and anxious on our first day because we don 't know what to expect. In “Nickle and Dimed” by Barbara Ehrenreich, she is an undercover journalist that explores the impact of the 1996 Welfare Reform Act on the working poor in the United Sates. Ehrenreich explores the process of applications and the difficulties of being a low-wage worker in and outside the workplace. The process of applications could be scary as well as humiliating, in some cases. Sometimes, the application process seems unfair, and the workplace and its
The gap in wealth between the rich and the poor continues to grow larger, as productivity increases but wages remain the same. There were changes in the tax structure that gave the wealthy tax breaks, such as only taxing for social security within the first $113,700 of income in a year. For CEOs this tax was paid off almost immediately. Free trade treaties broke barriers to trade and resulted in outsourcing and lower wages for workers. In “Job on the Line” by William Adler, a worker named Mollie James lost her job when the factory moved to Mexico. “The job in which Mollie James once took great pride, the job that both fostered and repaid her loyalty by enabling her to rise above humble beginnings and provide for her family – that job does not now pay Balbina Duque a wage sufficient to live on” (489). When Balbina started working she was only making 65 cents an hour. Another huge issue lies in the minimum wage. In 2007, the minimum wage was only 51% of the living wage in America. How can a person live 51% of a life? Especially when cuts were being made in anti-poverty and welfare programs that were intended to get people on their feet. Now, it seems that the system keeps people down, as they try to earn more but their benefits are taken away faster than they can earn. Even when workers tried to get together to help themselves they were thrown
In 1998, Barbara Ehrenreich, a prominent and prolific journalist in Florida, posed an interesting question to her editor: “How does anyone live on the wages available to the unskilled” (Ehrenreich, 2001, p. 1). In this idea, Ehrenreich set out on a journey to discover just how “the other half” lived on the low wages that they receive. During her project, Ehrenreich set out playing the role of a divorcee hoping to re enter the workforce by taking on the task of finding an unskilled, low paying job in hopes to see just how the poorer class made it with such low pay. Throughout the book, Ehrenreich takes jobs that pay typically between 5to 7 dollars per hour. It is interesting to look into how the attitude of Ehrenreich changes in respect to the
The minimum wage was, as it should be, a living wage, for working men and women ... who are attempting to provide for their families, feed and clothe their children, heat their homes, [and] pay their mortgages. The cost-of-living inflation adjustment since 1981 would put the minimum wage at $4.79 today, instead of the $4.25 it will reach on April 1, 1991. That is a measure of how far we have failed the test of fairness to the working poor.” (Burkhauser 1)
The prospect of the welfare state in America appears to be bleak and almost useless for many citizens who live below the poverty line. Katz’s description of the welfare state as a system that is “partly public, partly private, partly mixed; incomplete and still not universal; defeating its own objectives” whereas has demonstrates how it has become this way by outlining the history of the welfare state which is shown that it has been produced in layers. The recent outcomes that Katz writes about is the Clinton reform in 1996 where benefits are limited to a period of two years and no one is allowed to collect for more than five years in their lifetime unless they are exempted. A person may only receive an exemption on the grounds of hardship in which states are limited to granting a maximum of 20% of the recipient population. The logic behind this drastic measure was to ensure that recipients would not become dependent upon relief and would encourage them to seek out any form of employment as quickly as possible. State officials have laid claim to this innovation as a strategy that would “save millions of children from poverty.” However, state officials predict otherwise such as an increase in homelessness, a flooding of low-waged workers in the labour market, and decreased purchasing power which means less income from tax collections. The outcomes of this reform appear to be bleak for many Americans who reside below the poverty line. How does a wealthy country like America have such weak welfare system? Drawing upon Katz, I argue that the development of the semi-welfare state is a result of the state taking measures to ensure that the people do not perceive relief as a right and to avoid exploiting the shortfalls of capitalism ...
Him having this experience made him bring up a point saying, that every business with minimum wage employees has to respond to this one way or another and i quote, “ Those who say raising the minimum wage will have no effect on employment are dreaming.” For example, if the minimum wage is raised to $15, for most businesses like Brodsky’s, that will be the entry level pay which will cause them to cut certain things out whether its employees, supplies, etc. to stay in business. Thus, making it obvious that raising the minimum wage will cost jobs one way or another. But on the other hand, why have a business if they can’t keep up with the demands of the employees? Why should a person pursue a business if they can’t pay their workers the money they deserve, considering the majority make a living off of the job. Do people ever think about just simply making changes to the business, whether it’s adding a new feature or upgrading the overall quality of it. For example, something like a restaurant can add in special day of the week where they serve a particular dish just on that day, which will bring in more profit because of supply and demand. Another example, for business more like a store, the owner or employer can expand their range product sold in the store; if they sell hats, shoes, and clothes, maybe then they could range out and add in book bags for the school time or even accessories. There is always alternatives to bringing in more profit when needed, instead of just cutting
In an editorial written by Warren Buffett for the Wall Street Journal, according to S. Kumar in his article “America’s Workers Have Bigger Problems than the Minimum Wage” for Fortune Magazine, the problems that American workers face are far more than just attaining a livable wage. The three biggest problems that Americans face include the growing power of corporations, competition against technologies, and the growing income inequality that requires specialized skills where low-wage workers may not have education or capabilities to adapt. However, the minimum wage is still a serious problem, according to Roger Lowenstein. Lowenstein writes that the minimum wage does not provide a livable wage, which is a real problem when families are trying to survive on income that is too low even for an
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.
There has been much discussion recently about whether the US should raise the minimum wage. Ehrenriech’s book, although over a decade old, still makes meaningful contributions to this debate. The number of Americans earning minimum wage has more than doubled since 2007, and many more earn just a little over minimum That number will likely increase in the years to come, as the Labor Department predicts that six of the ten occupations expected to be added through this decade will be low paying ones Experts may argue numbers, but they can be too abstract to grasp. Ehrenreich’s lived experiences are valuable for giving readers insight into the struggles many Americans face and for doing so in a way that statistics cannot. Her stories make Nickel and Dimed a book that should be required reading for anyone interested in the plight of the less fortunate citizens of our great
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
Some think that the minimum wage should not be raised, but others think that the minimum wage should be raised. If one had to be chosen, raising the minimum wage would be better. The minimum wage should be raised because if you were to work full time on minimum wage, you are below the poverty line; Also states that did raise the minimum wage above the federal standard have had more job growth than states that did not. Finally, "Minimum wage workers are much more likely to immediately go out and spend that extra money in the economy," says Heidi Shierholz of the Economic Policy Institute, which favors raising the minimum. "That's because they're often living paycheck to paycheck."