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Negative effect of increase in minimum wage
Benefits of minimum wage
Benefits of minimum wage
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In “Why raising the minimum wage is good economics”, John Komlos uses his knowledge and experience in the field of economics to explain why Congress should raise the federal minimum wage. He makes his case by comparing low-wage workers to Russian serfs and relating the hardships of the working poor. According to Komlos, a person working full-time at a minimum wage job makes about $12,000 a year after taxes, just above the poverty line for a single person. He also points out that America’s federal minimum wage is well below that of other industrialized countries. John Komlos is trying to inform his audience about the federal minimum wage, so they won’t be misled by smoothtalkers like Donald Trump. He appeals to the audience’s sense of logic by using statistics and numbers to justify his claims. Komlos appeals to the audience’s sense of emotion by relating the hardships of the working poor. He also establishes his credibility as a …show more content…
"Should The Federal Minimum Wage Be Raised?." U.S. News Digital Weekly 5.18 (2013): 14. Academic Search Premier. Web. 31 Mar. 2016. In this article, James Dorn and David Cooper argue whether raising the federal minimum wage will help or hurt low-wage workers. James Dorn, Vice President of Academic Affairs at the Cato Institute, argues that raising the federal minimum wage would hurt low-wage workers by reducing job opportunities and raising prices. Dorn also states that the federal minimum wage is responsible for high unemployment among teenagers and minorities and lower productivity among low-wage workers. David Cooper, an analyst from the Economic Policy Institute, argues that the federal minimum wage is not a living wage and that raising the minimum wage doesn’t have a significant effect on employment. Cooper also states that eighty percent of low-wage workers are at least twenty years old and that eighty-five percent of small businesses already pay their employees more than the minimum
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”
The minimum wage has been a policy tool used in the United States since its establishment with the Fair Labor Standards Act in 1938. It has been uses as a tool to remedy some of the effects of poverty by raising the wages of the low wage workers. It has long been the worthy goal of many policy makers to find solutions to alleviate pove...
Minimum wage has always been a controversial issue. Many politicians use the argument of minimum wage for their own political propaganda. Some may argue minimum wage should be raised, while others believe it will have detrimental effects on our economy if it is raised. Surprising to most people, minimum wage earners make up only a small percent of American workers. According to the Bureau of Labor Statistics, minimum wage workers make up about 2.8% of all workers in America. “The majority of minimum wage workers are between the ages of 16 and 24. These are high school and college students” (Sherk 2). But high school and college students are not the entire percentage of minimum wage earners. When minimum wage is raised, it affects the entire economy in many different ways.
Sickler, Melvin. "Should Congress Increase The Federal Minimum Wage And Index It To Inflation? (Cover Story)." Congressional Digest 92.5 (2013): 19. MasterFILE Premier. Web. 22 Nov. 2013
Karl Marx’ capitalism theory goes hand in hand with the minimum wage issue. Declining wages and growing inequality are the world’s central economic challenges. In modern day America, where the cost of living is constantly on a gradual increase, the question arises: Should the minimum wage be increased? After doing some research, reading works by authors such as: Jordan Weissmann, Jared Bernstein, and Brad Plumer. I have come to the conclusion that, although increasing the minimum wage will have various effects on diverse demographics, increasing the minimum wage will ultimately benefit our nation.
The minimum wage in America is currently set at $7.25. The Fair Labor Standards ACt of 1938 proposes raising it to $9.50, than a year later to $10.50. Although to many this may sound like a great idea; a little more money in your pocket, it will actually do more harm than good to those who fight to achieve it. If the minimum wage is increased, it will cause the price of products to also increased; due to the fact that the price of production and labor will be much more expensive. Another result of minimum wage increase would be the loss of jobs; especially in entry-level positions. The “minimum wage raise will do most harm to those at the bottom of the skills pool”, because it will be too expensive for employers to hire those without decent
“I don't know of a single economist who disagrees that when you raise the minimum wage, you kill jobs for the poor”- Newt Gingrich. A federal and state minimum wage is good for the economy to incentivise workers, and make sure people are not underpaid, but if the minimum wage is too extensive, it can have drawbacks on the economy. While having a minimum wage, there are both positive and negative effects, but it seems to be a stable balance. When raising the wage, it appears that the same balance is possibly thrown off.
If today’s economy kept up with the minimum wage in correlation to worker productivity it would be $21.52, but instead the minimum wage is a measly $7.25. Today the topic of raising the minimum wage to $15 has become a controversial topic, so much that it has become a discussion point in the 2016 Presidential debates. Those who support raising the minimum wage argue that it will help stimulate the economy and lower the number poverty stricken families. Those who oppose raising the minimum wage rebottle that it will only raise inflation and increase the number of unemployed workers. The federal government should raise the minimum wage to $15 because it would help the working poor climb out of poverty, boost economic activity, and lessen the
“Raising the minimum wage” has recently been the center of debate nation-wide and has continuously gained support and opposition since President Obama first mentioned it in 2013. As protest groups form in support of raising the minimum wage across the nation, opponents are formulating reasons why an increase hurts the economy, businesses, and the people intended to benefit from the increase. Studies from both sides show compelling differences
Lastly, this paper will discuss what part minimum wage plays in the growth of unemployment rates. It is evident in our society that minimum wage does not benefit the poor and in retrospect, is actually impacting them negatively. Minimum wage is a term every individual in and out of the workforce has heard before. Perhaps, no one as much as my fellow college students who are struggling to pay off loans and debts while they attend school full time. Minimum wage is defined in the Fair Labor Standards Act as “a prearranged salary level that must be at least met if not surpassed by companies in all employment contracts.
Poverty is a huge problem in America that has been around forever. There is also the problem of the minimum wage, and how it relates to poverty, that has been studied by many researchers. According to the U.S. Census Bureau in 2015, 13.5% of Americans suffer in poverty, and the average annual salary of minimum wage workers is $15,080, which is right below the poverty line for two or more person families (David Cooper 1). This brings us to the question, will raising minimum wage reduce poverty? Raising the federal minimum wage would fail to reduce poverty because according to research, most benefits of raising it would not go to those in poverty, unemployment would rise, and business would be hurt and forced to raise their prices.
Unlike the purpose of a higher minimum wage, a raise in minimum wage would bulldoze a plethora of people more into poverty. A minimum wage raise would have a cause and effect situation, it would cause a layoff in people’s jobs and effect where people were now receiving their checks. With a higher minimum wage, it would cause employers to employ less because they could not pay as many people that high of pay. In a study, there would be a 9% employment loss for a person between the ages of 25-61 with a 10% increase in the minimal pay (Jenkins). The target for raising the minimum wage is those adults who are living off the mandatory pay. But, as Jenkins found, it does the complete opposite. It would cause more people to lose their jobs and
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
About “75.3 million people ages sixteen and over worked for hourly wages in 2008, according to the U.S. Department of Labor’s Bureau of Labor Statistics” (“Minimum Wage”). Meaning almost a quarter of the workforce in this nation are working a minimum wage job. Numerous people believe that these workers are not able to make ends meet, and increasing the minimum wage will help these individuals substantially. Even though people believe that increasing the minimum wage will benefit the society, they tend to overlook the drawbacks of increasing the minimum wage, and how it will prove to be detrimental to the society. People believe that increasing the minimum wage will reduce poverty and improve the living standards of the individuals.
A sensitive topic for many Americans is their income. Many people’s income relies on minimum wage. In 2012, 3.6 million people received an hourly pay at or below minimum wage. There is an ongoing debate in government as to what the minimum wage should be. Stuck at $7.25, Obama has suggested raising the minimum wage to $9.00. Depending on a person’s perspective, raising minimum wage could be positive or negative. Minimum wage has the ability to change lives, and change the economy. Small businesses and unemployment, teenage demographics, and the cost of civilian goods would be most affected.The only mystery is whether things would change for the better or for the worse.