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Raising the minimum wage would have too many negative ripple effects theoretically and realistically. In 2016, online activity for the phrase increased minimum wage reached its second highest point per Google Trends. Politically, socially, and economically minimum wage has both opponents and proponents scratching their heads. Two parties are clear split on the topic and University students should clear stand on one side if they truly care about everyone’s long term goals. Minimum wage should not be increased at the federal level because it rids the taught principles, tarnishes the purpose of having a minimum wage, and due its negative effects on both the present and future. Progressing to the obstruction of key and foundational principles …show more content…
Minimum wage was established by President Franklin D. Roosevelt in 1938 when congress passed The Fair Labor Standards Act of 1938. He intended to help the low skill factor workers from being over worked and under paid. A country founded on capitalism, created a safety net to keep the able and willing from bottoming out. Fast-forward to the 21st century where an abundance of jobs exists, legal and illegal. Minimum wage today is used to give even the lowest of the willing and able a job that isn’t illegal. Most peer reviewed, unbiased, data (even from proponents of increasing minimum wage) suggests that a loss in jobs is inevitable. Research from Dr. Steve H. Hanke while at Johns Hopkins University had a scope of 21 different European Union countries and their respective unemployment rates versus the countries’ minimum wage laws. He found that, “the 21 European Union (EU) countries that have a minimum wage and found they had an average unemployment rate of 11.8%, about a third higher than the 7.9% average unemployment rate in the seven EU countries that have no minimum wage” which reveals an unsettling reality of minimum wage (Hanke, Cato.org). Moreover, the reality of living in a set minimum wage society is the importance of teaching our youth budgetary responsibilities. Responsibilities like saving for important things, the difference between want and need, and …show more content…
One of the present and current implications of an increased minimum wage will be the workforce it attracts. Even with the increased minimum wage the job is still a minimum skill job, but with more applicants. Students out of high school unaware of the current workforce situation see a shining hourly wage and would rather start making money now than two to four years later. Economics Dr. John Perry explains the economic principle, Law of Demand in the realm of minimum wage, “The Law of Demand tells us that as the wage (price) of low-skilled/unskilled is artificially increased through legislation, the quantity demanded for those labor services by employers will fall,” and says this isn’t the main contributor to the jobless rate (Perry, aei.org). Dr. Perry goes into more depth about the economic principle, Law of Supply, which would primarily affect high school aged
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
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,
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.
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.
In this day in age many United States citizens struggle just to get some bills paid, feed their kids, and even enjoy their own money. Of course with most of them wanting to quit their jobs but know they can’t because no one else will hire them. Basically having to maintain with minimum wage is what they’ve had to deal with probably for their entire life. All they ask for is a bit of a higher pay just enough to be able to get things done and not have to stress so much over the smaller things. Raising minimum wage can positively impact a younger person in society financially by giving them the change to cause a positive ripple in the economy, produce more jobs for others, help slow down the use of government programs, and it can even help decrease
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
Job loss, people being placed in higher tax brackets, inflation, and greater job competition are all results that would occur if the minimum wage is raised. It would be harder for businesses to expand because of the costs of workers. Taxes would increase for many people. The consumer would not be able to do their grocery shopping without bringing home a big receipt. High school students would not be able to find a job so they can get experience. Now is the time for America to think about future generations and the problems it will create for those generations if minimum wage is raised.
In the last years, there has been a controversy over raising the minimum wage. This can be seen in many of the fast food industries, with protest to increase the minimum wage to an average pay of fifteen dollars an hour. Increasing the minimum claims to solve countless economic and social dilemmas. For young Americans that are unemployed, the increase of the minimum wage would be a catastrophic. This type of first step would destroy the future for the young generate, as they would be trapped as a low-skilled American in poverty. For most people, increasing the minimum wage is an idea of gaining more money to bolster a standard living and be above the poverty line. If the minimum wage would ever increase to a staggering number, the supply and demand would decrease, since the employment rate is based on the principle of supply and demand. The higher the cost or services the less demand for the supplies or services, which would lead to an increase of unemployment in America. Increasing the minimum wage could potentially cause many Americans to lose their jobs and still maintain poverty, as the prices for customers amplify as the minimum wage increases.
In the United States there is a problem. People are working minimum wage jobs and are not being able to pay for basic needs such as rent and food. According to the Low Income Housing Coalition, Today, in the United States a person earning the Federal minimum wage of seven twenty-five an hour would have to work around eighty-six hours per week to be able to afford a one-bedroom apartment at the Fair Market Rent, of eight hundred and six dollars (“Out of Reach”). People are working and need government assistance to help them pay for basic needs in life. Raising the national minimum wage to fifteen dollars an hour would allow people to live a life where they don’t have to worry about not having enough money for food, rent, or other basic needs
Minimum wage has been an ethical and economical dilemma for decades and has many sceptics weather it is beneficial or not. Many people have debated weather raising minimum wage would have positive, negative, or no effect at all. There has been claims of all effects from more employment to unemployment and if it would affect the prices of our goods and services. There has been prediction that if the minimum wage is increased it would cause people to lose jobs because the amount of profit would decrease so they would have to disemploye people to meet the business profit. Or if minimum wage is increased the goods and services would have to increase as well to meet the demand of pay for the employees, in turn the higher positions would also have to increase pay to keep the difference of each level of leadership the same. On the other hand people have said it would benefit the economy by increasing minimum wage.
One of the most commonly asked questions in our society is whether or not the government should raise the minimum wage. While raising the minimum wage would not only lift individuals out of poverty, but it would also put our economy in danger. Raising minimum wage in the United States will destroy the economy because it will increase inflation, raise the unemployment rate and decrease corporations’ fundings due to labor cost.
Minimum wage is an extremely controversial topic in today’s world. After reviewing how minimum wage has changed over the years, what affects it, and how it affects the employers, employees, and the cost of goods, it hope it helps you form your own opinion about
Minimum wage has been a workplace controversy for many, many years. Most people think that the minimum wage is too low. The majority of places that pay workers minimum wage is fast-food restaurants. This is because the fast-food restaurants are trying to turn as much profit as possible. With so many restaurants, places like McDonalds and Burger King must be able to pay for all costs and turn a large profit. So, by paying the employees minimum wage, they can turn the most profit out of their business.
What is minimum wage? Well for those who aren’t certain minimum wage is the lowest wage permitted by law or by a special agreement. Many individuals in our world today including myself are victims of these minimum wage jobs. I understand and know what it is like to work and feel as if you still can’t manage to keep within the means. Although have you ever wondered would it be like if minimum wage was raised? Can the people being paid minimum wage say they are actually being paid what they’re worth at their job? Most likely many individuals would say yes to actually getting paid more money at work. If a change was actually to be made in minimum wage there would be so many human beings that would benefit from this. For example, a raise in our minimum wage would really affect many families that struggle to survive day by day and our economy would also be affected in a big way.
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.