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
But yeah it is nice to have extra money by raising minimum wage but it is going to be the same thing overall, if not worse the bills are going to go up with it. Raising minimum wage could reduce the benefits you get such as insurance, vacation, and your future. Raising it as well means what about all the people that already have their worked their way to what the minimum wage wants to be set at. Do they expect them to stay at that same wage or go up as much as minimum wage raised. It is hard to raise the minimum wage therefore it shouldn 't.
For instance, from the article “The effects of minimum wage” by David Neumark states that employers will try to keep away from low-skilled workers if the wage were to increase because it would cause them to be wasting money to train them; especially for students and high school graduates who are in absence of any work experience. With minimum wage increasing for the past couple of years it makes it difficult on employers who run small businesses to hire more new workers because they too are also citizens that have to pay their taxes and extra just to keep their business up and running. Such as the author Gina Kim who wrote the article “Minimum wage: helpful or harmful for small businesses” states that 85% of small businesses pay workers a bit more than the minimum to keep their workers interested in the job and they have to make profits out of their business to keep it on track. These businesses cannot innovate if the wage increases because then the labor market will pick up the prices on materials as well creating more of a problem for small business owners to keeping their company open for as long as possible and their solution would be to not hire a lot of employees. This pretty much explains the reasoning about how it will be troublesome for new fresh workers trying to just gain experience and get hard earned
b) These multi-million global companies have the ability to increase their costs to fund the appropriate wages and maybe shorten the working hours, but they choose not to do so. B. Sweatshops might be the silver lining for unemployed people in developing countries. a) These workers might be in a worse position if big companies stop hiring them for less than minimum wage. If sweatshops were banned completely, a lot of people would have their only route out of poverty taken away from them. b) Such people might resort to other dangerous jobs such as prostitution and crime, to put food on their table.
The document reasons that if the amount of money employees earn is expanded, companies will be less likely to hire as many workers (Huppke). This causes job loss for future laborers. Businesses will not be able to financially employ as many individuals, thus, increasing the nation’s overall unemployment rate. Some employers find a means around decreasing the number of employees by limiting the amount of hours each individual can work (“Economists argue about minimum wage”). A second argument in the minimum wage war focuses around the concept of inflation.
Although the term “living wage” is not clearly defined by advocates, it is loosely a wage sufficient to satisfy one’s basic needs including housing, education, food, and healthcare. The main arguments for this living wage are that it is our moral duty to stop the exploitation of workers by their employers who can force them to work long hours in horrible conditions for little pay, and that society will reap benefits if the poor are better able to take care of themselves due to their higher wages. The arguments against (increasing) the minimum wage are that as things get more expensive we demand less
With this, unemployment started to go down. The money given to the American people through these jobs would allow them to buy more consumer goods, thus the companies making more money and paying their workers more. This deficit spending by FDR worked up until he decided to balance the budget. If FDR had decided to continue the deficit spending, America could have exited the Great Depression
Reasons Not to Raise the Minimum Wage Raise the Minimum Wage Would result in job losses. It hurt low skilled workers be harder to find a job. Minimum wage increases dose not reduce poverty. Result In higher Prices For consumers, the costs of minimum wage increases must be paid by someone. The reason people would losses their jobs the first 25-cent minimum wage in 1938 resulted in significant job losses.
Yet we have to think about what the outcome would be to each scenario. According to William Dunkelberg, a writer for Forbes magazine, by raising minimum wage there could become less jobs than before. Though the people who have jobs would be making more money, smaller companies wouldn’t be able to pay for their employee’s, and would have to let people go. “Small businesses stay in business
01 Mar. 2016. The American Action Forum believes that raising the minimum wage can do more harm than good and hurt the people it’s supposed to help. Job loss in the millions would happen if the wage was raised from $7.25 to $15. People in poverty before the increase would have trouble finding jobs because companies would have to have less positions to counter the wage raise.
This is a very big issue. By raising the national minimum wage, the United States may, after some time, decrease the percentage of people who are considered to be living in poverty. One political cartoon depicts the minimum wage being dictated by large businesses as opposed to having the minimum wage be
I do not believe that it will be beneficial for the United States to pass a minimum wage policy that puts it over the poverty line. Basically, this will dive the prices of products up so companies can manage profits. Additionally, the demand for products will additionally drop because of the rise in prices. Since the demand for products will be dropping, this will lead to less money in the business owner’s packet, which can lead to job losses. Even though the minimum wage workers will have more money on pay day, the rise of goods will cause inflation, and they will still not be able to afford anything.