Although there are many ways to look at minimum wage, such as the increase and decreases, and how it will affects today 's economy it has both negative and positive effects. I believe that the minimum wage has an overall negative impact because whenever the minimum wage is increased it only makes more people recede into poverty when it is supposed to do the reverse effect. Minimum wage was originally made for people just starting out or a pay for low-skilled employees. I believe that if people can 't afford the stuff they need because of a minimum wage, then they should work harder to either get a pay raise or move to a higher paying job. This would not only help our economy grow but help people out of debt and poverty.
It could cause people to lose their jobs, have their hours get cut, or they could start getting hired less in the future (Smith). Raising the minimum wage could also increase the unemployment rate which is already 6.7% which translates to about 11 million people looking for a job. Lastly, raising the minimum wage could have a huge, negative impact on the still-fragile economy (Smith). People oppose the idea of keeping the minimum wage the same because they say they can barely live off of it because they have families, but others don 't have large families to support. Some people work their tails off for the $7.25 they make an hour, but others slack and still have those jobs, so raising the minimum wage would reward the hard workers and the slackers.
When people think about raising the minimum wage most of them are excited because their check would have more cash, but, they don’t think about the bad effects that it will cause other employes. Minimum wage is the lowest daily or monthly remuneration that employers may legally pay to workers. In California raising the minimum wage has become a big argument between those who think raising would have more cons and those who think they have more pros. Despite the fact that people think raising up the minimum wage will help many people get out of poverty. I do not support raising the minimum wage, and the reason is as followed.
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.
According to Don’t Raise Minimum Wage written by Sean McGarvey, by raising the minimum wage less jobs will become available to laborers causing an inflation in prices to buyers. If the wages increase large corporations such as McDonalds and Walmart will lay off the majority of their workers in order to pay for the other employees raise. The employees that get laid off are often the ones that are too young and inexperienced to better the company. This could prevent teens and less experienced laborers from getting jobs. These companies also could higher their prices on their products in order to pay for the raises for their employees.
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. His viewpoint is the minority of those in his status as a highly successful businessman, as when businessmen are questioned about raising the minimum wage, they mostly argue for the opposition. Their arguments usually state how their businesses will suffer; such as the fact they will be losing money due to the increase they’re being forced to pay workers. This most likely won’t be the case because money is forever changing hands and giving more money to minimum
The wage rate would be so high employers would not be able to afford all the money they have to pay out to the workers, so they have to cut off some people. Contrasting that thought, a quote that states “increasing the minimum wage may also spur businesses to operate more efficiently and employees to work harder.”. This quote is stating that if there were less employees than the employees are going to work harder as it is technically more economically efficient that way .Yes, this is true, but they will “ have” to work harder to keep up with the same amount of output as before because 5 is more than 3 as hard as that is to picture. This also places a larger responsibility on the remaining few because now if there is a weak link then the ship is really going to sink. Plus, in the bigger picture people are losing their jobs from
Many people believe that which was the reason for the coal strike because the workers wanted higher wages and shorter work days. But the mine operators complained that profits were low. Business owners if they had to live off the wages that their employees live with and worked in the conditions there would be much change. Some people
What causes a recession is inflation. Inflation is a general increase in prices and the fall in the value of money. Falling confidence in the consumer can be a major cause in leading to a recession. Also, manufacturing orders starting to slow down in the economy, this can lead to less money being produced throughout the economy resulting to a loss of jobs. Since this causes a high unemployment rate many of the people will get on a government welfare program to pay for their family and that is even more money being lost in the economy, making the nation fall into a deeper recession.
In the event that the lowest pay permitted by law is raised then low maintenance laborers, generally young people, would have all the more burning through cash and would along these lines help the economy. Expansion has consistently been on the ascent too since the last increment and with the late assessment climbs, it is important to build the lowest pay permitted by law. Additional pay in the pockets of somewhere in the range of 16.5 million specialists could stream down to retailers and give a support to the economy. This isn 't to say low-wage specialists wouldn 't spare some of their additional pay, yet given the poor funds rate of laborers in the U.S., we should simply say I wouldn 't be amazed to see utilization ascend, with vast distribution center retailers like Wal-Mart profiting bigly. According to CNBC news, Christian Weller, a senior fellow at the Center for American Progress said, “the U.S economy will benefit from the raise of wage.
At this point the benefits seem significantly more important than the costs. Sure the costs cannot be ignored but in the long run the increase in wage can improve people’s lives outweighing the costs that exist. Some of the important benefits from increasing the minimum wage would be giving a better salary to the people who depend on that money to provide and support their families. In today’s current situation the minimum wage has people living in poverty because what they earn is not enough to support them. By raising the minimum wage people can get themselves above the poverty line as “A more recent
Even if you were to get payed a higher minimum wage, raising the wage will also raise other expenses in America. That would still leave the ‘poor’ in the same situation that they are in. Raising minimum wage would also cause other families to go in debt, because if they are making a constant amount of income and taxes increases or their bills become higher because of the increase they will lose money causing them to become
This could lead other shops and industries to raise their prices as well. This would result in a higher cost of living and eventually lead to another push to raise minimum wage once again. It could be argued that by raising the minimum wage people will have more money to spend and therefore businesst activity will increase. This theory is not valid because the weakening of the workforce would greatly outweigh any benefit obtained by people whose wages were raised by just three dollars. “Some policymakers may believe that companies simply absorb the costs of minimum wage increases through reduced profits, but that 's rarely the case.
Unpaid internship has an impact on the economy in a negative way as it increases the youth unemployment numbers, it also causes a downfall in the wages for the economy and at the same time it contributes to slow economic growth (Langille, 2013). Langille (2013) further suggests that students or unpaid interns are made false promises of gaining the essential knowledge and experience from their time invested in the company for free and also the potential of having a full time employment at the organization, however it is not certain that they would be hired, hence the company is avoiding paying taxes to the government, which is another impact the overall economy is facing. Furthermore, it also impacts the economy in a way that the new graduates or the interns suffer from lack of security and alienation from the labour market (Langille,