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.
For instance, when a company moves they must lay off hundreds, sometimes even thousands of employees. This raises unemployment in the US, while it raising employment in other countries such as, Vietnam, China, and Brazil. Now, of course, their are benefits to moving companies out of America. For instance, companies can lower their prices, and increase America’s products in the world market. Also,
I like how you used minimum wage as one of the tensions between economics and ethics. This is a popular topic in the news now and seems to come up every couple of years. There are many pros of raising the minimum wage such as higher worker morale, improved living standards and increase consumer spending. At the same time there are disadvantages as companies could raise their prices, jobs could be cut, and reduce desire for career advancement. If I own a coffee shop and increase the wages of all employees to $15 an hour, but have to layoff 3 employees in the process am I doing an ethical or unethical thing?
While it is reasonable to only increase minimum wage for those who work full-time, most that work full-time are already getting paid above $7.25 an hour. At the same time, the cost of living is likely to increase for all. Furthermore, I have personally seen that many who work minimum wage jobs made the conscious decision to drop out of school or take the easier route and earn a GED. Although I disagree with much of what Perkins states, I agree with Perkins claim that raising minimum wage might motivate people to stop abusing the welfare
Since the Great Depression, there has been a minimum wage in America, but this minimum wage has changed 22 times since the Great Deprnbession. Many people say minimum wage should stay at $7.25 like it has been since 2009. Meanwhile, other people believe that minimum wage should be $15.00 so they can have more money to live comfortably. People think that a higher minimum wage will help, but it will hurt more people than it will help. If America makes the minimum wage $9.00, people will no longer be in poverty and it will make the economy balance out.
According to a professor named Robert B. Rich “$10.10 isn’t enough to lift all workers and their families out of poverty. Most low-wage workers aren’t young teenagers; they’re major breadwinners for their families, and many are women. And they and their families need a higher minimum wage.” Robert is saying that the minimum wage should be increased because for most people in a family that earns all of the money to support their family will need to get out of poverty. Therefore raising the minimum wage would be benefit.
The third example is, some full-time workers with a college degree make “40 percent more” than the people who only have a high-school diploma. (Leonhardt). With more income, they are able to provide better for their families and create better lives and living scenarios. Even with the price of college being so high, with their future careers they will be able to pay off their debts and for
Minimum wage is affecting employment, businesses, and how people live in ways that are unrewarding. In 2014, the Congressional Budget Office estimated that if the federal minimum wage raised in 2016 to $9.00 that about 100,000 workers would be unemployed. They also estimated if it were raised to $10.10 that about 500,000 workers would lose their jobs (“The Effects of a Minimum-Wage…”, 2015). With an increase of minimum wage companies would have
Today about sixty million people are relying on minimum wage or low income jobs to support themselves and or their families. An increase in the minimum wage can help many people live a more efficient life. It is believed that in order to live in a one bedroom rental in New York State at minimum wage you would have to work about ninety eight hours a week. After factoring in sleeping, someone working a minimum wage job trying to support themselves could have only fourteen hours a week of free time. With that said why is not the minimum wage increase?
With greater ability and mentality for success, college graduates are seen by employers to have the experience needed to earn a higher wage. As stated by Pew Social & Demographic Trends, “Adults who graduated from four-year College believe that, on average, they are earning $20,000 more a year as a result of having gotten that degree.” This is rightfully given to graduates because the large amounts of money, time, effort, and learning they went through to graduate college. Despite this some still argue that this higher wage is not capable of paying off student loans accumulated from four years in college, however, over a number of years the debt would be increasing faster and higher than those who would be increasing faster and higher pay. In conclusion, an ever growing unemployment level of college graduates, is leading to an ongoing debate of the necessity of a college degree. However, a college degree is worth the cost: it helps in preparing a student for the workforce and mental skills needed in their line of work, it can cover skills regarding nearly all forms of jobs, and it insures higher wages for most