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. Holzer also defends the idea of a massive increase on in not only unemployment rates, but common household items, as well.
In theory, raising the minimum wage would lessen America’s dependence on such benefits. If workers are making more money, Hanauer says that workers are spending more, and increasing the demand for more workers as opposed to cutting jobs. Hanauer closes his essay by telling the reader to see the economy as Henry Ford did; an effective economy is one that works for all not just part of the country. ANALYSIS: After reading Nicolas Hanauer’s essay on raising the minimum wage to $15 an hour, I take an affirmative stance on this issue. The main reason for siding with Hanauer is that he is thinking about how many people can get an upper hand with a wage increase.
Sherk states the cause of this would be because, from the increase, businesses “always respond to higher cost by economizing,” which is to reduce spending. Once Sherk explains the reasons for his position, he offers the reader evidence to support his claim. To support his claim, Sherk tells the reader that, based on a study, every “10 percent increase would cost 1.2 percent to 1.7 percent of low-income workers their jobs” and would reduce teenage employment by two sevenths percent (Sherk). Also, from the beginning of the recession and the increase, “unemployment among teenagers has risen 6.4 percent to 22.7 percent” and “the unemployment rate for adults without a high school diploma has risen 7.8 percentage points to 15.3 percent” (Sherk). Sherk supports his claim by offering the reader substantial amount of
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
In fact, 18% of the benefits would go to households with an annual income less than $20,000. Benefits of an incrementation disproportionately avail those working households at the bottom of the scale. Albeit households in the bottom 20% receive only 5% of national income. Benefits of the antecedent minimum wage increase peregrinated to these workers. A majority
In America, there are many favorable aspects that many people will agree that they love about our country, but one major source of dilemma is "minimum wage. " Minimum wage was designed to give workers enough to live the bare limit above the poverty line, but, sadly, it affects over 58% of our nations workers. With the wage set at 7.25 an hour, many are continuing to get by, having to skip meals and even doctor's visits. Although, at first glance, the obvious solution would be to bump the pay up a few bucks, many don't realize the negative effects of it. The three articles "30 Days", "Serving in Florida", and "The Argument against raising minimum wage" help shed light on the pros and cons of this sensitive subject.
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.
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
The idea may sound great. The more money the more people consume. Yes, that is true if we build more jobs, But increasing the minimum wage could lead to another economic problem. If Congress raises the minimum wage to $15 an hour, the employer would be paying $18.61 an hour. The employer would be paying $15 for the minimum wage, $0.19 for unemployment insurance taxes, $1.15 in payroll taxes, and $2.21 per hour in Obamacare penalties.
We find no evidence that minimum wage increases between 2003 and 2007 affected overall state poverty rates. ”(Leigh, A. (2007) Proposals to increase the minimum wage are politically popular because they are widely seen as an effective way to help the working poor. In spite of it, state and federal minimum wage increases between 2003 and 2007 had no effect on reducing the poverty rates. “Minimum wage increases have thus far provided little more than symbolic support to the working poor.”
By doing so, raising wages will actually help solve this as credit reliance will drop, and people with newfound spending power will be able to go out and buy what they want and desire. Let’s say that a student (specifically a college student) has to worry about grades, and can hardly balance their work-life. But however, that student can’t quit his/her job because that person needs help to pay for their college tuition. Financial Aid is helping her lower her tuition money, but however will soon graduate with a large amount of student-loan debt, which is a college student’s worst nightmare! Even with the loans, financial-aid package and assistance from his/her parents, not having a job is not the option.
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.
Minimum wage and poverty With everything going on with the Walmart workers picketing for fifteen dollars an hour wages, the topic is widely discussed with many people taking many different sides. The essay “Raising the Minimum wage will reduce poverty” By Sharon Parrott and Jason Furman, They go into how they think the minimum wage should be raised in order to decrease poverty in america, Of course there are reasons to raise it and reasons to not raise it. Yet with the multitude of reasons for and against it, it’s hard to make a decision that makes everybody content, Some of the reasons not to raise it include, Raising it can make prices for everyday items go up, Why go and spend thousands of dollars on college when you could get a decent job right out of high school, and Why let workers who work at unskilled jobs make as much if not more than the military. Some reasons for minimum wage raising is, The fact that the cost of living is higher means people can’t survive with minimum wage without federal care, And just helping people get back on their feet when they couldn’t find a job. The reasons Minimum wage shouldn’t be raised outweigh the reasons it should.
The Minimum Wage Struggle Money is an essential object to acquire in the society we live in. Various places demand a high monthly rate in order to occupy a premise, along with the stress of utility bills that may not be included. Aside from living costs there are many other factors which must be calculated when budgeting on a day to day basis. Overall, the survival rate tends to increase due to so many responsibilities that need to be upheld, as well as costs being raised. This rise in both the cost of living as well as the need for higher wages proves that the standard of minimum wage needs a major increase.
One of the greatest effects of a $15 an hour minimum wage would be its impact on
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.