Minimum Wage Debate
The minimum wage debate is a hot topic in political arenas. Politicians are passionate on both sides and quick to point out reasons why. People in favor of raising the minimum wage point how doing so would improve the quality of life of America’s lowest wage earners. While people opposing raising the minimum wage point out that the evidence suggest that doing so would likely stifle job growth. There are valid points to consider on both sides.
The pros of raising the minimum wage would be to improve the quality of life for those low wage earners. Most people making minimum wage can’t afford to make a living off of their pay checks alone. According to an article in The Economist, titled The Logical Floor, it states that politicians on both sides are warming to the idea that the lowest-paid can be helped by mandating higher wages. By giving the lowest- paid wage earners a raise it would enable them to spend more money and boost our economy as well. The same article points out that moderate increases do more good than harm to the economy. So, why then aren’t more American’s behind
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If business reduce their labor force due to the increase in salary cost then it adds to the already high unemployment/underemployment rate. Americans cannot afford to have more unemployed people in our communities. Another possible con would be if a high increase in minimum wage causes an increase in the cost of goods and services. While workers may earn more they may also have to spend more and their quality of life may not actually improve. In the article The Logical Floor, it states that in Britian, it is (the minimum wage), adjusted annually on the advice of economist and is generally increased gradually. If this had been done in the United States maybe we wouldn’t be having such heated debates with such costly consequences
Argument against Minimum Wage Claim: Raising the minimum wage could lead to bigger problems. Support: The US would lose 500,000 jobs (Congressional Budget Office report, Economist and public policy experts ) Increased consumer prices, driven by companies offsetting increased labor cost (Econo-mist and public policy experts). A possibility higher minimum wage would attract more experience workers that would stay in a low paying wage longer, which makes young people and other people with lim-ited work experience not land entry-level jobs (Economist and public policy experts).
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
The most important reason is that it would make it harder for people to create businesses if we raise the minimum wage. For example , say that you or a friend were looking for a job, what if neither of you can find a job because all of the once-were available jobs
After some research, he realized that both sides have valid points, just as the title tells us. Although the author says both sides have a valid argument he takes a stance for supporting raising minimum wage when it could negatively impact our economy in many ways such as destroying our economy by increasing poverty, inflation of prices for consumer goods, and increasing unemployment because of the shortage of of jobs due to businesses laying people off.
Since the election and reelection of President Barack Obama the increase in minimum wage has been a major topic for the United States. His proposal to increase minimum wage has sparked a lot of controversy with some Americans. Many believing that increasing minimum wage will have a negative impact on our economy and even our educational system. They argue that increasing minimum wages will harm the very people it was intended to help because it will increase housing cost as well as the price of consumer goods. They argue that it will decrease the high school enrollment rates at the same time increase dropout rates.
One reason that raising minimum wage would help the economy is that it gives a change in income. Generally, an increase in income increases the demand for goods at all prices. If a worker has more money due to a raise
When you raise minimum wage you raise the price in everything else for instance if minimum wage was raised ten percent that also raises restaurant prices 0.7 cents that may not sound like a lot but it starts adding up sooner or later and who knows then it could raises prices a whole dollar. Some people think that because the cities they live in are so expensive that minimum wage should be raised but if you live in an expensive city and are also living off minimum wage and can not afford it then you should not be living there. Also women think that they can not have a good lifestyle for their children with what minimum wage is paying. If you are living off minimum wage and trying to raise children then maybe you should find a different job where you can afford a life for your kids. Minimum wage should be raised because the economy is at a point where if minimum wage is raised there would not be a drastic change.
With the increase in living costs, people are demanding that they receive a higher minimum pay to cover these expenses. In his article “Millennial Thoughts: Minimum wage and my take,” Will Perkins offers his opinion on minimum wage. There are many sides to the debate of whether to increase or not to increase minimum wage. Perkins, in his article “Millennial Thoughts: Minimum wage and my take,” discusses the controversial issue of raising minimum wage. He emphasizes that people who work full-time should “earn a livable wage.”
The federal minimum wage should be increased because raising it would increase the economic activity and spur job growth, decrease poverty, and also improvements in productivity and economic growth have outpaced increases in the minimum wage. Increases in job growth and economic activity will happen when the minimum wage is elevated. If the minimum wage was increased it will “inject 22.1 billion net into the economy and create about 85,000 new jobs over a three year period”. (“Raising the Federal minimum Wage to $10.10 Would Lift Wages for Millions and Provide a Modest Economic Boost") Thousands of new jobs will be created and it will put billions of dollars into the economy.
Is it really a good thing to raise the minimum wage to meet the basic need for poor people? Is it the best way to prevent poverty rate and income inequality? Answers must vary from skeptical to comprehensive response depending on whoever answers these questions. Amid a debate on this
The arguments against not increasing the minimum wage are rather straightforward. The main argument is individuals currently earning minimum wage are not receiving a living wage, therefore something must happen to help Americans currently living in poverty. Whether the changes made are for an increase in minimum wage or through alternatives such as an increase in EITC guidelines, it is a blatant issue needing resolve. The “Federal Minimum Wage: Is the Federal Minimum Wage Good for the Economy” article states that workers making the federal minimum wage are only earning about $15,000 per year on a 40-hour workweek. There are very few people who can earn such a small amount of money and can live comfortably.
In 2015, CBS and The New York Times conducted a poll regarding the public opinion of Americans support for raising minimum wage from $7.25 per hour to $10.10 per hour. The poll showed that 71% of Americans favored it, whereas 26% opposed it. There are strong arguments to be made about both sides of the debate, and though there are lots of pros to increasing the minimum wage, there are equally as many contradicting arguments. The strongest argument held by Americans who favor the raising of minimum wage is that it would improve the overall economy of the U.S. and create more jobs. In a 2013 Economic Policy Institute article, David Cooper writes, “Across the phase-in period of the increase, GDP would grow by about $22 billion, resulting in
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.
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.
In the past three years, many politicians and labor unions have been pushing for an increase in minimum wage. Minimum wage is the lowest set wage by a law of a government body. An increase in minimum will benefit some people, and hurt others. An increase in minimum wage will cause benefit in the short run but will be very damaging to the economy in the long run. There should not be an increase in minimum wage because it is unhealthy to the economy in the long run and it will be the major cause of job loss, increase in inflation, competition, and the price level of goods and services.