The supporters of minimum wage say it increases the standard of living, reduce poverty, reduce inequality and boost morale while the opponents say the exact opposite. The question to pose is then: what exactly does minimum wage do? This essay look at the effect of minimum wage on income inequality, international experience of minimum wage, effects of minimum wage
Some say that raising the minimum wage will lift people out of poverty and provide a higher standard of living for everyone. Others believe that doing so would damage the economy and result in the loss of jobs. Raising the minimum wage would be detrimental to the economy, because it would create many problems for businesses and the free market. Raising the minimum wage would have a negative impact on the quality
I live and work in Ohio the minimum wage is under eight dollars and many of those jobs and companies do not offer a forty hour a week schedule. Not to sure even if you work forty hours a week how much better you will become. I do believe that a higher minimum wage will help to a point. A increase in the minimum wage could help in many other ways, people could afford to spend more to help out their community. Plus depending on the person they could go back to school and try to get even more increase in their wages and incomes.
Minimum wage has gained an important place in the brain of politicians to reduce social gaps and inequality. Governments intervene on the market to allocate a better wage towards workers than the one offer by the market equilibrium. This controversial measure raises lots of debate on whether raising the minimum wage results in workers becoming jobless. Government intervention on minimum wage has one main goals: increase the demand by an increasing of wage. The main reason against minimum wage is that it creates unemployment among low skilled workers; on top of that it can be argued that the redistribution effect is not going to the target people of the measure.
The answer to that question however is multifaceted, but it starts with one base ideal: Raising minimum wage doesn’t do any of the good that one might expect it to. The first reason that an increase to the minimum wage would be the wrong decision, is because raising the minimum
This shifting of businesses abroad further pushes up unemployment levels as lesser jobs are available. Moreover, studies done on the impact of minimum wage laws clearly show that minimum wage laws lead to a reduction in the labour force participation rate (Brown, 139). The introduction of legislation to repeal minimum wage laws would also reduce poverty. It would motivate the younger generation entering into job markets to look for enriching jobs. An increment in the minimum wage is said to have a negative impact on all employees, and businesses.
By increasing minimum wage, America would be hurting its people, not helping them. Therefore, raising the minimum wage is not a smart move for America. Increasing the minimum wage would hurt the jobs of America profoundly. First of all, if one looks at it logically, increasing minimum wage increases the
Currently, the federal minimum wage is $7.25 an hour, but there is a proposal of raising the minimum wage to $15 dollars an hour (Sessions). Many people are with or against the raise of minimum wage, should the United States of America raise the minimum wage? Opponents say that raising the federal minimum wage would would increase the amount jobs created, and also increase economic activity. The economic institute states that increasing the current federal minimum wage of $7.25 to $10.10 would create approximately 85,000 jobs and add $22.1 billion net into the economy (David). Business analysts and financial experts from the Federal Reserve Bank of Chicago concluded that by increasing the federal minimum wage would also increase accumulated household spending by $48 billion through the year boosting job growth and boosting GDP, short for gross domestic product.
One of the most frequently asked questions in our country seems to be will minimum wage being raised or lowered affect poverty. Poverty has struck many people in the United States across the nation. With this occurring in our country poverty will continue to affect millions of Americans each year. The federal minimum wage ought to be raised because it would fortify the economy and enable Americans to out of poverty. Increasing minimum wage will make workers more financially stable, if the wage doesn’t increase it will be harder for people to make a living.
Hence, it is apparent that if we want to increase minimum wage, we can do so. This is something that is a natural outcome of the economic growth that the United States is now enjoying. Clearly, there are going to be increases in revenue and profits throughout America. And if this is only restricted to a few, in top positions who get their salaries increased hundreds of times ahead of the ordinary worker who is doing a lot to keep a company going. In line with this, the small change in minimum wage is not helping and it is clearly not reflecting the fair and just distribution of money throughout the organization and teamwork is hurt by keeping the minimum wage low.