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How Can Minimum Wage Be Disastrous For Americans

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Minimum wage helpful or disastrous for Americans Did you know that millions of minimum wage workers cannot make enough money to be over or at the poverty line level and are actually a lot more below it instead? There have been many issues on the topic of increasing the minimum wage from ten to fifteen dollars because it can cause inexperienced workers having a tough time getting or looking for jobs, families not being able to live on the minimum wage the way it stands now, and businesses not being able to create more jobs to hire more workers. For instance, an author named David Neumark believes that the effects of the minimum wage have a major issue that increasing minimum wage can reduce the numbers of jobs and pretty much screw over workers …show more content…

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

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A recent study involving three hundred fifty thousand small businesses and the IRS proved that by raising the minimum wage, proved that by raising the minimum wage in cities, actually created jobs (Meyerson A.19). The survey showed that the cities with a higher minimum wage had more jobs come to the area, aiding in job growth (Meyerson A.19). Another argument that leans toward the raising of the minimum wage involves people in poverty. Studies have shown that by raising the minimum wage, more people can live above the poverty line (Meyerson A.19). By raising the minimum over nine hundred thousand people would be

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Minimum wage would raise the wages of many workers and increment benefits what disadvantaged workers. An estimated 6.9 million workers would receive an incrementation in their hourly wage if the minimum rage were raised to $10.15 by 2015. Due to the spill over effect the 10.5 million workers earning up to a dollar above minimum wage would withal be liable to benefit from an incrementation. Women are the most astronomically immense group of beneficiaries from a minimum wage increase. Sixty percent of workers who would benefit from an incrementation are women.

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I believe that the minimum wage in Pennsylvania should increase from $7.50 to $10.00. Why so? I feel as though teenagers, specifically freshmen in college should earn a more decent pay whether they work at a typical job, such as Burger King and Dunkin Donuts. More like fast food restaurants comply within this topic. I specifically aim for freshmen, or even college students because they need a well, decent pay whether they are struggling with financial problems, such as the need to pay for their tuitions, textbooks, and school supplies!

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After thoroughly reading two articles by Surowiecki and Saltsman on if the United States raising minimum wage, the minimum wage should remain the same. To support this statement, Saltsman states that the people who live below the poverty line, in fact, are not poor because of minimum wage; Americans remain poor due to not working at a job. People continue to live in poverty because they lack the skills to even attain a job or look for a job. Even though Surowiecki claims that 46% of today’s families live off of a minimum wage worker, minimum-wage jobs weren’t meant to support families. Minimum-wage jobs were meant for teenagers and woman.

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The federal minimum wage should be increased because raising it would increase the economic activity and spur job growth, decrease poverty, and also improvements in productivity and economic growth have outpaced increases in the minimum wage. Increases in job growth and economic activity will happen when the minimum wage is elevated. If the minimum wage was increased it will “inject 22.1 billion net into the economy and create about 85,000 new jobs over a three year period”. (“Raising the Federal minimum Wage to $10.10 Would Lift Wages for Millions and Provide a Modest Economic Boost") Thousands of new jobs will be created and it will put billions of dollars into the economy.

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How Raising Minimum Wages Will Affect Us In an article written by Wesley Coopersmith, Minimum wage: more harm that good, of Americans for prosperity, published on December 19, 2013, Coppersmith argues what problems could happen if the minimum wage is raised to $15 an hour. Coppersmith starts off by saying that President Obama called for an increase in minimum wages to help people who are struggling in the United States, but Coppersmith does not seem like he agrees with that because of what other harm it could possibly cause. He says that raising minimum wages may cause unemployment, that it will hurt those who are less skilled, and that if minimum wages increase then the price of our necessities will also increase. Coopersmith’s argument

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Jobs are going to start going out of business because they won't have enough employees. Second, Most minimum-wage employees work for small firms in competitive markets. These companies have small profit margins. They can only pay higher wages if they raise prices. Customers, not business owners, pay that cost” (“Minimum Wage''.)Another example is it will be hard as a small business to create a bigger business.

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Minimum Wage Increase One of the most talked about topics in our country seems to be would an increase in minimum wage benefit positive or negative for many individuals and our economy. The increase in minimum wage is essential that will benefit greatly from unemployment, strengthened education power towards the economy, and spirits of the hardworking individuals who will be fairly rewarded they deserve for their hard work of their jobs. What Americans are looking for in jobs that are available are the ones that provide good wages. And according to Roznik, “much of our unemployment or underemployment is based on the low availability of jobs that do provide a living wage”. (Roznik)

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When there is an increase in the minimum wage, employers substitute lower skilled workers for higher skilled workers, so many teenagers have their jobs terminated. This is especially a problem in disadvantaged communities where the unemployment rate for non-white teenagers is a whopping 43% (Jardim & Long, page 9, 2017). Communities like these cannot afford to see this number rise, yet in a study done by the National Bureau of Economic Research, if we were to increase the minimum wage by any number over 10% the non-white unemployment rate would rise to over 50%. If we raised the minimum wage to $15 an hour it would be a 100% increase which is huge. The purpose of the minimum wage is to help low income and low skilled workers, but when it starts negatively impacting the workers it's supposed to be helping doesn't it defeat the whole purpose?

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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.

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880 Words | 4 Pages

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.

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491 Words | 2 Pages

Minimum wage started to help those with less skills and those who are faced with the issue of poverty. When minimum wage is increased, this creates a more competitive job market where those less skilled now suffer because it makes more sense to hire somebody with a higher amount of skills than somebody who has little to none. In this situation, the sole idea that was meant to help the low skilled, now hurts them. Another issue is that places with higher minimum wages have to raise their prices to meet an equilibrium. With higher wages, the store or restaurant has to make up for those wages and now it is hurting the customers and thus a snowball effect occurs.

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2273 Words | 10 Pages

On the other side, the argument against raising the minimum wage is that it would hurt the low-paid workers. Small businesses will not be able to pay higher wage to their employees and will have to let some of them go. Finding jobs will become more difficult for the low-skilled workers. Higher minimum wages will increase the prices for goods.

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582 Words | 3 Pages

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.

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In the past three years, many politicians and labor unions have been pushing for an increase in minimum wage. Minimum wage is the lowest set wage by a law of a government body. An increase in minimum will benefit some people, and hurt others. An increase in minimum wage will cause benefit in the short run but will be very damaging to the economy in the long run. There should not be an increase in minimum wage because it is unhealthy to the economy in the long run and it will be the major cause of job loss, increase in inflation, competition, and the price level of goods and services.

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