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Positive effects of raising the minimum wage
Positive effects of raising the minimum wage
Positive effects of raising the minimum wage
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A family of four is on government welfare, has no health or car insurance, and lives from paycheck to paycheck because both parents make minimum wage. Parents cannot provide for a family because they barely make enough money to pay the bills. According to Driscoll, it is proven that a “family of three all making minimum wage, still falls below the poverty level.” President Obama has proposed raising the minimum wage to $9.00 but no actions have been made on his behalf. So congress needs to raise the minimum wage in order to help the general well being of the people.
Minimum wage is the least amount of money than an employer can pay its workers per hour. For example, the minimum wage in Virginia is $7.25 per hour. Ford points out in his article on raising the minimum wage, “The minimum wage rose to $5.85 in the summer of 2007 and to $6.55 in the summer of 2008 with plans for a final value of $7.25 in the summer of 2009.” However, different states have different minimum wages. For instance, Washington has the highest minimum wage at $9.19 per hour and Georgia has the lowest rate with $5.15 per hour. But according to the National Employment Wage Project, “if the United States would have kept up with inflation over the past 40 years, the minimum wage would be $10.74 an hour.” That is $3.49 more than the minimum wage is now, which would be $7,259.20 more a year (before taxes).
By raising the minimum wage, it would stimulate the economy in many ways. It would “increase the purchasing power of many workers whose wages would also go up” according to the article Raising the minimum wage: Guide to Critical Analysis. Another way that it would help the economy is that it would decrease the amount of people that would need government welfar...
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Jacobs, W.E.Hoagland, Steve. "Counterpoint: Minimum Wages Are Unwarranted Economic Interference." Points Of View: Raising The Minimum Wage (2013): 2. Points of View Reference Center. Web. 8 Nov. 2013.
Jacobs, W.E.Hoagland, Steve. "Counterpoint: Minimum Wages Are Unwarranted Economic Interference." Points Of View: Raising The Minimum Wage (2013): 2. Points of View Reference Center. Web. 8 Nov. 2013.
"Raising The Minimum Wage: Guide To Critical Analysis." Points Of View: Raising The Minimum Wage (2013): 4.Points of View Reference Center. Web. 28 Oct. 2013.
"Rebuilding an Economy That Works for All of Us." Facts. NELP, n.d. Web. 11 Nov. 2013.
Sperling, Gene, and Alan Krueger. "The White House Blog." Raising the Minimum Wage Is Good for the Economy. The White House, 24 July 2013. Web. 28 Oct. 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
Minimum wage is a topic that has been popping up since the 1980s. From whether we should lower it, or even raise it, but now in the 2000s minimum wage has been the center of attention more than ever. There are two sides to this topic of minimum wage; whether it creates more jobs or does not create jobs. Those who argue that raising minimum wage will create more jobs will have a rebuttal which is that it does not only cause the loss of jobs but that it would make things much worse and vice versa for those arguing raising minimum wage will cause loss of jobs. There will be two authors representing opposite views, Nicholas Johnson supporting minimum wage will not cost jobs with his article “ Evidence Shows Raising Minimum Wage Hasn’t Cost Jobs”
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.
One way raising minimum wage will be beneficial is that it could lift many Americans out of poverty. Raising the minimum wage in Illinois, would help the families of more than 1.1 million workers who work to meet their children’s basic needs and “reduce the adverse effects of poverty on a child’s well-being” (Fiscal Policy Center). Studies have shown that raising the minimum wage would help 1 in 5 Illinois families who are in poverty. By raising the minimum wage in Illinois, it would help workers with families spend money on food, housing, gas, and other needs without going into poverty. Along with puling Americans out of poverty, raising the minimum wage could also stimulate economic growth. Raising the minimum wage, is stimulating economic growth by worsening the income inequality and substantially reducing the employee turnover for the business. Increasing a person’s income would raise their yearly earnings by $3,640 and “Improve the economic security and reduce the economies poverty rate” (Fiscal Policy Center). Low-wage workers spend most of what they earn on their basic needs, which is quickly spent and does not leave the worker with much money left to spend on other needs. This boost in the minimum wage will stimulate the economy and help create opportunities for more people, by hiring more workers to keep up with the
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.
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.
Obviously minimum wage has increased significantly since 1968 where it was at $1.60 but, how much has it really increased in connection with inflation and rising prices of things such as food, gas, land and etc? That is what's really lost in the whole conversation of increasing minimum wage to give people more money doesn't necessarily mean you can buy more. Senator Tom Harkin made a great statement regarding inflation senator Harkin said "today, tens of millions of hardworking Americans who are earning at or near the minimum wage can’t even aspire to live a middle-class life or achieve the American Dream. Instead, they are falling further and further behind" (Harkin). This is because of inflation, although minimum wage has increased from $1.60 in 1968 to $ 7.25 in 2013 we actually have less buying power. What that means is that $1.60 in 1968 would get us more food than $7.25 would in 2013. People are tricked into thinking that small incremental increases are good because we are making more, guess what we're actually making less. If we kept that $1.60 wage today and indexed it to account for inflation minimum wage should be at $10.56 in 2013.
Minimum wage is a difficult number to decide on because it affects different income earning citizens in different ways. According to Principles of Microeconomics, by N. Gregory Mankiw, minimum wage is a law that establishes the lowest price for labor that and employer may pay (Mankiw 6-1b). Currently, the minimum wage in the United States is $7.25 per hour. For many years politicians and citizens have argued on what should be the minimum wage that would benefit the economy and society in general. A minimum wage was first established in 1938 to increase the standard of living of lower class workers. To discuss what is better for the country and its citizens, people have to understand what is a minimum wage and what are its effects.
The definition of Minimum Wage is “an amount of money that is the least amount of money per hour that workers must be paid according to the law” (Minimum wage). Minimum wage, like other laws, are used to keep the economy in line. Minimum wage laws were invented in Australia and New Zealand with the purpose of guaranteeing a minimum standard of living for unskilled workers. (Linda Gorman) Minimum wage puts a price on the services one offers. Many different principles can be used to explain Minimum wage and explore the different aspects of it. Including what minimum wage does for our economy and the current status of it.
"Bill Gates: Raising Minimum Wage Can Destroy Jobs." The Foundry Conservative Policy News from The Heritage Foundation. N.p., n.d. Web. 14 Mar. 2014.
On the other side of the argument Americans believe that with the increase of minimum wages it would help Americans out a lot more. One possible way that the increase in minimum wage may help an individual out is in the article Minimum wage Pros and Cons, “The Economic Policy Institute stated that a minimum wage increase from the current rate of $7.25 an hour to $10.10 would inject $22.1 billion net into the economy and create about 85,000 new jobs over a three-year phase-in period. Though this may be true, one problem
Pyke, Alan. "The Minimum Wage: Myths & Facts." Media Matters for America. N.p., 15 Feb. 2013. Web. 18 May 2014.
Today the federal minimum wage is $5.15, but should be about $8.50 if Congress had adjusted it for inflation over the past 35 years. While $5.15 may not seen that bad, when factoring in such variables as sky rocketing gas prices, budgets can get pretty tight. David Shepard, a sophomore at Wayne State University, worked at a Meijer Retail and Grocery Superstore for over two years while in high school. At the time Shepard lived with his parents and didn’t have to worry about paying rent or buying groceries, all that he had to pay for was filling up his gas tank and paying for his car insurance. Shepard recalled, “It was all I could do to pay for the basics like gas and bill’s, I barely had any money to have fun on the weekends”. This is only an example of a high school student that can nearly slip by on minimum wage with only a few expenses. There are 1.8 million people in America with children under the age of 18 that would benefit from an increase in minimum wage (Minimum).
"Raising the minimum wage will benefit about 28 million workers across the country. And it will help businesses, too - raising the wage will put more money in people's pockets, which they will pump back into the economy by spending it on goods and services in their communities." -- President Obama
In the 2014 State of the Union address, President Obama called on Congress to raise the national minimum wage from $7.25 to $10.10 an hour, and soon after signed an Executive Order to raise the minimum wage to $10.10 for the individuals working on new federal service contracts. An increase in the minimum wage has been a topic of discussion for many years now, and it looks like this year will finally see the first increase of minimum wage in 10 years. Not everyone agrees that there should be an increase, but many states have already raised their minimum wage rates because of the federal government’s inaction. Iowa raised the state’s wage, and it will rise again in 2016. Clearly there are benefits to a higher minimum wage; the current minimum wage in the United States should be raised because it helps the economy by increasing employment, and it is now at the lowest value it has been in more than 50 years, causing hardship for earners of minimum wage.