Ever since I was young I have heard people around me debate if raising the federal minimum wage was a good idea. I have come to understand that people are either very in favor of the raise of minimum wage or not at all. From listening to other people’s conversations I’ve come to understand that Democrats tend to always argue in favor while Republicans argue against. I have always thought that raising minimum wage would benefit the people struggling to support themselves. I have began to question if raising minimum wage would actually be beneficial. The first job I ever had was working at a small business. I began to wonder if raising minimum wage would make it difficult for small businesses to pay their employees. Is raising minimum wage a …show more content…
Strain. Strain is the Director of Economic Policy Studies at the American Enterprise Institute. He oversees the institute's work in economic policy, financial markets, poverty studies, technology policy, energy economics, and other areas. Strain has a lot of experience and knowledge working with the economy. This article he wrote in March of 2013 was not in favor of raising minimum wage. He argued that a higher wage makes it more expensive for firms to hire workers. Making businesses required to pay a higher minimum wage results in fewer employees getting hired. Businesses can not afford to pay all of their employees a higher salary. If minimum wage is increased the result will be more people getting laid off from work. This will increase the unemployment rate, and it will make it more difficult to find available jobs. Strain argues that workers who earn the minimum wage are generally not the primary breadwinners in their households. When these workers are the secondary earners there is no need to raise the minimum wage. Raising minimum wage will make it more expensive for businesses to hire young workers for low-skill …show more content…
The first pro this article states is that employees who are getting paid at a higher rate will be more likely to stay. These employees will feel more appreciated for their hard work. This means there will be a lower turnover rate,which results in fewer expenses to hire and train new employees. The second pro is the raise in inflation. The federal minimum wage needs to be raised in order to account for inflation. Inflation raises every year while minimum wage does not. A con this article looks at is the layoff rate. If the employer has a small budget and minimum wage is increased the business may not be able to pay all of their employees at the higher rate. As a result, the business will have to layoff their employees to compensate for the increased pay. So, while some employees may be making slightly more money, others will be left unemployed. Another con would be a price increase of products to be purchased from stores. Businesses will increase the prices of their products being sold to generate more income. The business will need to do this to pay their employees the increased minimum wage rate. One business that increasing their prices may result in other businesses doing the same. This would make the cost of living higher. If minimum wage increases, overly qualified individuals will be getting minimum wage positions. This would result in
One of the cons to increasing the minimum wage is that it helps larger corporations and hurts smaller businesses, therefore, competition is decreased. The bigger companies use raising wages acts as a barrier to entry to new business entering the market and create a monopoly for larger companies who have more profits to afford the increase. An example of this is Wal-Mart, who can afford to pay employees nine dollars and twenty cents an hour but a little store such as Meijer 's who does not make as much profit would limit their hiring of new employees and would cut hours to compensate. A family store might decide that the cost of entering the market is too high to endure as they build up their clientele and develop their business they decide not
The federal minimum wage has been increased twenty-two times since President Franklin Delano Roosevelt signed the bill into law in 1938. President Roosevelt was an avid supporter of a federal minimum wage as he says that “no business which depends for existence on paying less than living wages to its workers has any right to continue in this country.” Raising the federal minimum wage has many pros and cons, but is a necessity to thrive in society. People have argued that raising the minimum wage will cause inflation, but it will create various economical benefits, income benefits, production benefits, and improve racial justice.
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
A minimum wage increase from “$7.25 to $10.10 would result in a loss of 500,000 jobs”. ("The Effects of Minimum-Wage Increase on Employment and Family Income”) This claim is better because it shows how raising the minimum wage will decrease job growth instead of increasing it. But, the minimum wage should be increased because increasing will also increase economic activity and spur job growth, decrease poverty, and improvements in productivity and economic growth have outpaced increases in the minimum
Also, it might take time for employers of many low-skill workers to learn how to economize on their labor costs. They will over time since the incentives to do so are much larger and that would be bad news for the very low skill workers the higher minimum wage is designed to help. Whenever increasing the minimum wage is discussed, there is always a concern that doing so might hurt job growth or imperil businesses that employ low-wage workers business they have to pay their works more and that could be hard for some business or companies. The effect of increasing the minimum wage on employment is probably the most studied topic in labor economics because the government has to worry about inflation and prices going up and also the consensus of the literature is that moderate increases in the minimum wage have little to no effect on employment.
A controversial topic often debated between liberals and conservatives is the minimum wage issue. While many liberals advocate for raising it, a number of conservatives are persistent on keeping the rate constant; however, studies show that raising minimum wage would not alleviate this country’s poverty issue and would, in fact, increase the unemployment. For these reasons, the minimum wage should not be raised. Increasing the minimum wage would cause economic strain in many ways to workers already living in poverty. According to James Sherk’s article: ‘Raising the Minimum Wage Will Not Reduce Poverty’, raising minimum wage to seven dollars and twenty five cents would cause an estimated eight percent of current workers to lose their jobs.
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.
The essay starts off with a quote, “Raising the minimum wage… would insure… that a family of four with a parent working full time at the minimum wage did not have to raise their children in poverty” This quote right here is one of the best ways to agree with raising the minimum wage mostly because we as a society have
When the minimum wage increases, business owners will have reduced profit, sales will fall off, and prices will raise. Eventually, the owner will not get any profit because the store will get $10 off sales but the worker demands $15 and the worker will have to be fired. A high minimum wage sounds like a great idea in the free market, but it seems like a joke. Customers will not agree to pay more on a product just because the business has to pay the worker more and they will lose a profit they really cannot afford to
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.
Many families have to have strict budgets due to only making minimum wage. The minimum wage is not enough money for most people, in fact, most of the people that make minimum wage, work multiple jobs, leading them to overwork themselves constantly. Increasing the minimum wage has been a major argument for quite some time. Some people argue that the minimum wage should be raised to help benefit workers and reduce poverty. They also believe that raising the minimum wage would input more money into the economy, allowing it to strive.
Raising the minimum wage will cause prices of goods, accessories , and needs to rise as well. As my first source says “A 2013 article by the Federal Reserve Bank of Chicago stated that if the minimum wage is increased, fast-food restaurants would pass on almost 100% of their
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.
By raising minimum wage, the value of these training opportunities and incentive to earn more money goes out the door. Truth be told, it’s just life, and life isn’t always fair. By raising the minimum wage, it opens up the opportunity for less qualified employees to earn the same amount of money as the higher skilled workers. If an employer believes an employee is highly qualified, they will start their pay higher than the current minimum wage. Some may beg to differ and say that if the company is small or big should be taken into considerations and that is actually Another reason the government should not raise minimum wage, because the size of companies varies.