Melvin Sickler, franchisee of Auntie Anne’s Pretzels and Cinnabon in New Jersey, urges for the minimum wage not to increase based on his experience in business. When the minimum wage is raised higher than the federal minimum wage at$7.25 an hour, jobs become unavailable. Due to Oregon’s minimum wage increase, in 2013, the restaurants in that state hired fewer workers. If it had not been for the raise, the National Restaurant Association, would of hired 23,500 additional employees. (Sickler 19-25). An increase on minimum wage will hurt the economy and low-wage workers.
Although the minimum wage is believed to bring many families out of poverty, according to the CBO, if the minimum wage rises, as much a s one million jobs will no longer be available to people. CBO uses a television ad to illustrate why an increase on minimum wage would not benefit the poor. In the ad, a waiter is replaced by an iPad. The increase in wages will turn into technology and machines taking over many low-wage jobs. (Gray 40-1)
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Unlike older studies that suggest no job loss, the most recent studies with new strategies done in 2014 and 2015 suggest that an increase in minimum wage, does in fact, result in job losses, specifically for workers with low skills. From the research done on locations that increased the minimum wage, about 18,600 job opportunities would be lost for teenagers. Furthermore, for a larger group of ages sixteen to twenty-four, 75,600 jobs loss. Neumark also states that even though there is not a lot of evidence on older workers, studies like Clemens and Wither, a study done in 2014, suggests that it would result in a number twice as high of job losses for low-skilled workers. (Neumark
Just think about how many more people are negatively affected . {PAUSE} Alyssa: A higher minimum wage wouldn’t cause any significant impact on prices and would instead help businesses and the government. In fact, “The government would save forty-six billion dollars over ten years since people would earn enough to no longer qualify for the Supplemental Nutrition Assistance Program.”
In the article, “Minimum Wage Hikes Hurt Low-Income Workers,” Jame Sherk debates how an increase in the minimum wage would impact workers and corporations. Sherk builds his argument by first explaining the recent history of an increasing minimum wage and how much it has risen. Following, he argues why it would hurt businesses and low-income workers. Lastly, after illustrating the consequences, he offers statistical evidence to support his claim and to prove to the reader why the hike would only hurt both businesses and low-income workers. Sherk’s use of evidence and explanation offers a strong argument and a clear stance.
A recent study involving three hundred fifty thousand small businesses and the IRS proved that by raising the minimum wage, proved that by raising the minimum wage in cities, actually created jobs (Meyerson A.19). The survey showed that the cities with a higher minimum wage had more jobs come to the area, aiding in job growth (Meyerson A.19). Another argument that leans toward the raising of the minimum wage involves people in poverty. Studies have shown that by raising the minimum wage, more people can live above the poverty line (Meyerson A.19). By raising the minimum over nine hundred thousand people would be
First, one main reason that the minimum wage should be raised is because the economy will prosper. “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” (ProCon). This quote shows that the economy will flourish from the increase of the minimum wage and that unemployment will decrease. Another quote that shows how raising the minimum wage will affect employment is “To the extent that through these contour effects it affords as much as 70 percent of the workforce greater purchasing power, it effectively increases aggregate demand for goods and services, which should ultimately lead to the creation of more jobs” (Challenger 19). Bryan Covert supports raising the minimum wage by
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.
Democratic presidential candidates Bernie Sanders and Hilary Clinton have both embraced a 15 dollar minimum wage hike and interestingly enough, in a recent interview Donald Trump said that he cannot believe how “anyone could live with 7.25 an hour” and believes the states should take it upon themselves to increase the wage locally. It would be truly remarkable if one individual could live in Los Angeles (or Long Beach for that matter) with the current minimum wage of 10 dollars without having to share living expenses with others in the same household, or working multiple jobs. Nevertheless, with current economic conditions around the world it is hard for California and the United States to compete in low wage paying jobs that do not require much skills. In light of this fact I feel that the purpose of the minimum wage (which was established back in the great depression and had the goal of creating a minimum standard of living where all workers health and wellbeing was protected) should change to meet the demands and reality of our changing economic environment. Instead of being a labor price that psychologically gives individuals the liberty to buy a house, car, and some leisure, as many families think (especially as they mistakenly reflect back on the 1950’s) it should reflect the condition of the economy as a whole,
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
Because taking into account negative employment effects and increases in consumer prices induced by the minimum wage would wipe out any positive direct effects on household affected by the minimum wage. The minimum wage becomes even less effective in reducing income inequality when negative employment effects are taken into account. I will address the negative effects in sociological aspects by the
If America raises the minimum wage to $9.00, it will help people in need or in poverty, but it also won’t hurt people in the workforce. If you increase the minimum wage to $15.00 it will make unemployment rates go high up. Which in the process, makes the homelessness rates go up in the country and in your community. If you keep the minimum wage at $7.25 people will stay in poverty and homeless or on the verge of homelessness.
Increasing the minimum wage will result in many people losing their jobs, and also result in employers not able to find workers. Research shows that “advocates of higher minimum wages confuse cause and effect. They think a higher minimum wage causes incomes to go up for low-skilled workers and doesn’t destroy jobs. Workers are assumed to have higher wages and retain their jobs as a result of government policy — even though they have done nothing to improve their job skills. But if a worker is producing $5.15 per hour and now the employer must pay $9 per hour, there will be little incentive to retain (him or her).
Minimum wage has always been a hot topic for debate. Recently, though, the fire has been fueled even more than usual due to the Obama administration’s proposal for an increase in the minimum wage. The fiscal 2015 budget calls for a raise of the current minimum wage of $7.25 an hour to $10.10.
This is an article on Forbes by Bill Phelps, the Co-Founder and CEO at Wetzel's Pretzels, a fast food chain that has more than 300 locations in 28 states and 6 countries. Using his personal experience, he observes that when the minimum wage in California raised from $8 to $9 and from $9 to $10 “our same-store sales doubled.” According to Phelps, “low-income workers throughout the state have more disposable income to spend.” He ends by quoting that the unemployment rate decreased after the minimum wage increased. Although the writer credits the unemployment rate decrease mainly to minimum wage increase without giving evidence, this article can still serve as a source for the counter argument that a minimum wage increase is beneficial for both business and worker.
However, changes to the minimum wage may also have negative effects on the labor market and economy. When there is an increase in the minimum wage, the cost of living goes up which makes it harder for the lowest earners to pay for their basic necessities. When companies have to hire workers for a higher price, they are likely to pass at least some of the costs onto consumers since the marginal cost will be higher. It may also lead to unemployment in the
In conclusion, a federal minimum wage increase will significantly improve the standard of living of low-wage workers. To meet their basic needs, workers must be given a living wage. It is not only morally correct to do so, but also beneficiary to both ends. The increase in wages allows for a more supportable income, but it also stimulates the economy.
Many argue that an increase in minimum wage will help guide low skilled workers out of poverty and assist them into having a better career. That is not necessarily true, Many economists can agree that minimum wage jobs such as cashiers, host or a hostess are not jobs that meant to support a family. If anything by raising the minimum wage, it will put more people in poverty than guide them out of poverty. A raise in minimum wage will cause loss of jobs, an increase in the inflation rate, increase in