Seattle 3 years ago became one of the first states to incorporate the $15 dollars minimum wage. The first study by a team of researcher at the University of California, Berkeley study, that raising minimum wage to level would lead to at most a slight reduction in the employment rate. Moreover, the Berkeley study focused on the restaurant industry because some restaurant workers are paid minimum wage. For instance, for every 10% that minimum wage increased, wages in the restaurant industry rose 1%. As a result, there was no noticeable effect on employment. The second study which a group of researchers at the University of Washington states that minimum wage has had a far more negative effect on employment. The focus on the second study was on
In the article “A $15-Hour Minimum Wage Could Harm America’s Poorest Workers”, Harry J. Holzer outlines the effects of a fifteen dollar federal minimum wage. He interprets statistical data from different credible analyses and thoroughly explains the meaning of each. The author also does a great job informing us the results from past federal minimum wage increases. He recognizes that jobs will inescapably be lost; therefore, many people will be unemployed. While some citizens believe that a $15 raise will help the economy, the author comprehends the negative consequences of any federal minimum wage increase on the economy.
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.
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.
Essentially, Washington D.C. was one of the cities that established raised wages. In Jason Russell’s article, D.C. Lost Restaurant Jobs After Min. Wage Hike, he describes the repercussions placed on employees once the minimum wage was raised. Russell explains that after Washington D.C.’s minimum wage rose to $10.50 an hour in 2015, increases in restaurant jobs failed to keep up with the quick growth it carried during the economic recovery and further explains how restaurant jobs fell by 1,400 in D.C. (Russell 1).
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.
In the US there has been a movement to raise the federal minimum wage, which has been $7.25 per hour since 2009. A goal within this movement is to raise the federal minimum to $15 an hour. This would be a 107% increase over the $7.25 minimum wage. The question is if it is possible to expect that the minimum wage could be raised to $15 per hour without making a massive negative effect, to be more specific affecting the U.S. fast-food industry. The fast-food industry is a great discussion to look at.
And on April 1, 1991, the minimum wage hit an all-time high of $4.25 an hour as explained by Lawrence Katz (6). In his findings regarding his article, Lawrence Katz states that "the evidence on employment and price changes does not seem consistent with a conventional view of the effects of increases in a binding minimum wage” (20). By this, Katz is trying to state that even though the minimum wage increased in the early 1990s, the increase had an adverse effect in which employment to the fast food industry increased in Texas, where he conducted his research. He also concluded that the changing in prices in the businesses he researched were not directly associated the minimum wage increase. Looking back at this research, it seems as though the constant increases in the minimum wage shows how strong our economy has become.
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
(Card and Kreuger 1995, p. 593) This finding shows that the minimum wages fail to reduce poverty because many poor Americans do not work. Also, this increase would not be well targeted at low income households, and would only influence negligible effects on the income inequality. All these evidence suggest that the minimum wage increases do not reduce
In today’s society, it seems imperative to have an ensured income in order for members of a society to take care of those that depend on them. While raising the minimum wage may be the most potent means to this end, it is also the solution that brings the most long term problems. However, this has not stopped the policy from being tested in cities such as St. Louise and Seattle. While both had subtly different in both cities affects the broad end result: the policy was cancelled after a loss the employer’s money was apparent. These results prove that minimum wage would be inadvisable due to a loss to the workforce population, paradoxical effects, and the potential for a loss of money if an increased minimum wage is enforced.
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.
One of the greatest effects of a $15 an hour minimum wage would be its impact on
In cities like Seattle, Washington, the minimum wage raise has been adopted. Seattle 's local government intended to increase their unimpressive employment rates. The rates had been rising slowly over past years. Almost as soon as the minimum wage was raised to fifteen dollars, the once climbing employment rates faced immediate decline.
One of the elasticity conditions that make the statement about increasing the minimum wage resulting in less employment for employees who now earn less than the minimum wage is the price inelastic condition which states "...when demand is price inelastic, a given percentage change in price in a smaller percentage change in quantity demanded" (Rittenberg and Tregarthen, 2013, p. 116). The reason this elasticity condition rings true is because the total percentage change in the revenue of the minimum wage workers would still rise if there is a smaller percentage change of under minimum wage workers that were to be unemployed than the percentage of the wage increase. The second elasticity condition that would make the statement
Minimum wage Minimum wage in America is poverty it creates a wage lower than the living wage. It 's only backbone of support is social welfare and the affordable care act medicaid and obama care so people who have low wage paying jobs and minimum wage has to rely on taxpayers and the government to pay with their subsidizes, Because social welfare no longer becomes support but becomes a lifestyle. Minimum wage is set by the Department of labor, and fair labor standards act they set a minimum wage and a overtime pay. Why isn 't minimum wage raised to living wage or out of poverty level? Because if minimum wage goes up so does the prices of goods.