Minimum wage is a highly debated topic. Should the minimum wage be raised or should it stay the same? When there are 25 million people who would benefit from increasing minimum wage, why does the question so difficult to answer (Quinn, Castle, LaTourette, Morella)? When an answer can affect how people live their lives the answer should become easier to answer. Yet we have to think about what the outcome would be to each scenario. According to William Dunkelberg, a writer for Forbes magazine, by raising minimum wage there could become less jobs than before. Though the people who have jobs would be making more money, smaller companies wouldn’t be able to pay for their employee’s, and would have to let people go. “Small businesses stay in business
Raising the minimum wage has been one of the biggest debates during the 21st century. One side of the spectrum argues that raising it will make it so they have a living wage, while the other argues that raising it will hurt the economy. Whichever the case is, people are clearly divided on this issue. Before Oregon passed the 15 dollar minimum wage law, people wrote arguments to try to either prevent or pass this law. The article, “How a $15 minimum wage would affect a real business: Guest opinion” by Lee Spector argues that raising the minimum wage would hurt small businesses like the one he earns.
Why we Should Raise the Minimum Wage In Kevin A. Hassett's essay which appeared in American Enterprise Institutes online issue March 10, 2013 , '' Why We Shouldn't Raise the Minimum Wage'', he responds to announcement proclaimed by President Obama, in his 2009 State of the Union address, regarding the minimum wage. '' In the wealthiest nation on Earth... no one who works full-time should have to live in poverty.'' President Obama 2009 . Hassett believes that the President's resolution to raise the minimum wage would prove to be counter effective. He does not believe that it will solve the , present and worrying issue of poverty in the country.
Minimum wage would raise the wages of many workers and increment benefits what disadvantaged workers. An estimated 6.9 million workers would receive an incrementation in their hourly wage if the minimum rage were raised to $10.15 by 2015. Due to the spill over effect the 10.5 million workers earning up to a dollar above minimum wage would withal be liable to benefit from an incrementation. Women are the most astronomically immense group of beneficiaries from a minimum wage increase. Sixty percent of workers who would benefit from an incrementation are women.
Minimum wage should not be raised because it is not an income that someone sold live off of. Minimum wage in the country is currently $7.25 but some states have changed it in a way that is way too much. For example Washington state currently has the highest minimum wage at $9.32 that’s a $2.07 increase to the current amount minimum wage. Seattle is currently considering to raise their minimum wage to $15 it’s understandable that the city is very large and things cost more money but if they raise minimum wage to $15 that will only bring inflation causing things to cost only more money than it already does. If there is one thing that should not be done to the country it is to cause inflation.
Imagine there is a standard, a standard that all labor, service, and other unskilled sectors of employment adhere to. That standard is to only pay the minimum compensation for their employee’s time. Many people, in America, know this as minimum wage. Minimum wage is not sufficient for any person working full time, a 40-hour workweek, to have a large enough income that is considered a living wage or even an income that provides the standard of living. There are two economic principles that are relevant to this topic.
In the book The Minimum Wage by Opposing Viewpoints they say that the minimum wage does hurt small businesses. In the book it says “A 10 percent increase in state minimum wages is consistently associated with a 1 percent reduction in retail employment and a 1 percent reduction in small business employment” (Viewpoints 72). Every time an increase occurs by 10 percent than in effect to that a 1 percent reduction in retail and small business employment. This shows that the minimum wage increases has a huge impact on the small businesses and also the retails. When the wage in increased then the small businesses can’t afford to employ all these new people.
Increasing the minimum wage only does positive growth because “...authors found little or no evidence of a negative association between minimum wages or employment”. ("How Does a Federal minimum Wage Hike Affect Aggregate Household Spending?”) Increasing the minimum wage will only cause positive growth in a topic of employment. Raising the
A writer from the American Legislative Exchange Council states, “Small businesses face a very competitive market and often push profits as low as the can to stay open” (RaisingThe 7). In a catastrophic scenario, such as a large increase in payroll, these businesses could be forced to close. Many small businesses face a very competitive market with large corporations, and an increase in minimum wage would decrease their profit, stifling their potential for growth. This growth of small business is essential to the economy, as they provide innovation and job opportunities. If the futures of small business are put in jeopardy, so is the escalation of these important job
J.B Maverick states that “for some unfortunate people it can also cause Job loss and a more competitive job market”. Companies are always looking for ways to save money, and if they are forced to give employees raises it will cause companies to fire employees that aren’t deemed necessary enough for the pay they would be getting. According to the congressional budget office, Some people could be heavily affected by the wage increase and stay unemployed permanently while others might come and go making a higher wage than they use to while they work. Raising the minimum wage will also cause a more competitive job market as people will be trying to get new jobs or are reinspired to get jobs after leaving the
When a higher minimum wage is enacted the effects will be different for companies, industries and the labor market in general and we will also have different effects on the employment market. The main effect and impact will be for low paid jobs particularly in industries like food, restaurants and retail. This topic is very controversial and has supporters and deniers on both sides of the political and the economical world. I support the increase in minimum wage and I believe it should be linked to the inflation and the living wage.
“In fact, about three in four Americans support raising the minimum wage.” (Obama, 2014) Why do people want to increase the minimum wage? Let think of having a minimum wage of $7.25 per hour, and for a McDonald meal cost around $6. People worked an average 8 hours per day, and if people are having 3 meals from McDonald every day; it had already spent more than 30% of daily wage of the working class.
There are a lot of potential benefits for an increase in minimum wage and on the surface it’s hard to see why you wouldn’t want to increase the wage. One of the clearest to see is that an increase to the minimum wage will also increase the spending for each household during the following years. So it works to help stimulate the economy in whatever area you increase the minimum wage. Along those same lines increasing the minimum wage will lead to a decrease in poverty as well. With the decrease in poverty you will also see a decrease in government spending on welfare items because the individuals receiving the higher wage in theory will be able to pay for these services/welfare items without assistance.
Many people are with or against the raise of minimum wage, should the United States of America raise the minimum wage? Opponents say that raising the federal minimum wage would would increase the amount jobs created, and also increase economic activity. The economic institute states that increasing the current federal minimum wage of $7.25 to $10.10 would create approximately 85,000 jobs and add $22.1 billion net into the economy (David). Business analysts and financial experts from the Federal Reserve Bank of Chicago concluded that by increasing the federal minimum wage would also increase accumulated household spending by $48 billion through the year boosting job growth and boosting GDP, short for gross domestic product.
America today is faced with its fair share of problems. There are low employment rates, debt, and inflation everywhere, riddling the economy with issues. There is absolutely no reason that any American citizen should want to pile upon the problem. Yet, some believe that it could be done by raising the federal minimum wage to fifteen dollars an hour. Fortunately, history, economics, and common sense prove the minimum wage raise proposition wrong.
There are many effects of raising minimum wage to the U.S. economy in both negative and positive ways. When minimum wage is increased, it is supposed to help improve the lives of the workers and their families since they will have more income. It is especially meant to help lower income families. This is great for those families, but the company and economy can suffer from this. When minimum wage increases, companies have to pay more to their workers.