Is the federal minimum wage good enough for the economy? “The supporters believe that the minimum wage helps reduce unemployment and alleviate the effects of poverty by putting more money in the hands of workers and increasing their ability to afford basic costs of living, like housing and food. Meanwhile, the opponents believe that the minimum wage increases unemployment among low-income workers” (Federal Minimum Wage 1). I believe that federal minimum wage is definitely not good enough for the economy. In the state of Missouri minimum wage is $7.65; people have bills such as rent, car payments, insurance, electric, etc. many people can not live off of that and it is because it is not enough. Minimum wage is very difficult to live off and …show more content…
They end up losing the money because they have to pay people more. When they pay people more it is less money that the company will have. The company will also not want to give raises as well because they are already having to spend more money on their payroll. That is why many companies will not want minimum wage to be raised. The government is distorting labor markets and ultimately making it harder for the poor to find work. The minimum wage is especially difficult on small businesses, and there is no evidence that it reduces poverty. (Federal Minimum Wage 1) Finally, if we raise minimum raise it will make the economy better because people will have more money to spend. When people have more money they will buy more products for business. When people buy more things other companies will make more money and that helps them. Another plus for raising minimum wage is that people who don't have that much money that have families and can only get a job that makes them minimum helps them pay more pills and put food on the table. It would help many people out if we at least raised it by a dollar. That doesn't seem like much but after a while an extra dollar adds up
But would it? The Congressional Budget Office estimates that raising the minimum wage to $10.10 would boost earnings for around 16.5 million workers, while causing up to 1 million jobs to be eliminated. To me that’s not a great trade-off: according to CBO, the typical family living below the poverty line would see its annual income rise by only around $300, or about 2.8%. But for up to 1 million workers, their salaries would go to zero.
First, one main reason that the minimum wage should be raised is because the economy will prosper. “Economic Policy Institute stated that a minimum wage increase from the current rate of $7.25 an hour to $10.10 would inject $22.1 billion net into the economy and create about 85,000 new jobs over a three-year phase-in period” (ProCon). This quote shows that the economy will flourish from the increase of the minimum wage and that unemployment will decrease. Another quote that shows how raising the minimum wage will affect employment is “To the extent that through these contour effects it affords as much as 70 percent of the workforce greater purchasing power, it effectively increases aggregate demand for goods and services, which should ultimately lead to the creation of more jobs” (Challenger 19). Bryan Covert supports raising the minimum wage by
The most important reason is that it would make it harder for people to create businesses if we raise the minimum wage. For example , say that you or a friend were looking for a job, what if neither of you can find a job because all of the once-were available jobs
One reason that raising minimum wage would help the economy is that it gives a change in income. Generally, an increase in income increases the demand for goods at all prices. If a worker has more money due to a raise
Minimum wage should not be raised because it is not an income that someone sold live off of. Minimum wage in the country is currently $7.25 but some states have changed it in a way that is way too much. For example Washington state currently has the highest minimum wage at $9.32 that’s a $2.07 increase to the current amount minimum wage. Seattle is currently considering to raise their minimum wage to $15 it’s understandable that the city is very large and things cost more money but if they raise minimum wage to $15 that will only bring inflation causing things to cost only more money than it already does. If there is one thing that should not be done to the country it is to cause inflation.
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.
Introduction More numbers of state are joining to take action to raise the minimum wage to $15 per hour in a few years even though there is a high disputing controversial all over the nation. The federal has set the minimum wage level to $7.25 on Jan. 1, 2015. In less than a year the index number of the minimum wage is going up automatically with cost of living. And eventually it will be likely to increase year by year with automatic and expectation index.
The Good Thing that comes from raising the minimum wage is that it will give people more money for their families. Also raising the minimum wage a few cents or even dollars shouldn 't have a big impact on the people that are working. What researchers have found about raising the minimum wage is that it should not do any harm but a good thing for the people that are working for minimum wage. The only Problem that researchers have found is if the minimum wage comes to be 15 dollars an hour. That could have a bad impact on the people of Arkansas because that is a lot of money that people are getting and a lot of money companies have to pay for the
A higher minimum wage for workers would take families out of poverty and have a positive effect on the economy. The changes it can make in the economy would be that people paying taxes would not have to pay as much because minimum wage workers would not have to use the programs like (SNAP) that they
A person working full time at the federal minimum wage of $7.25 per hour earns $15,080 in a year, which is 20% higher than the 2015 federal poverty level of $12,331 for a one-person household under 65 years of age, but 8% below the 2015 federal poverty level of $16,337 for a single-parent family with a child under 18 years of age (procon.org pro#2). If you put the minimum wage at $9.00, people will be able to live comfortably without unemployment rates going up. However, raising the minimum wage
This would make it where people wouldn 't have to live paycheck to paycheck. Raising the wage slightly would also make it so the price of goods wouldn 't have to be raised. The Economic Policy Institute stated that a minimum wage increase from the current rate of $7.25 an hour to $10.10 would inject $22.1 billion net into the economy and create about 85,000 new jobs over a three-year phase-in period. This raise increase would be easy to implement and would help the economy. By implementing this new minimum wage many problems in America can be solved.
In conclusion, a federal minimum wage increase will significantly improve the standard of living of low-wage workers. To meet their basic needs, workers must be given a living wage. It is not only morally correct to do so, but also beneficiary to both ends. The increase in wages allows for a more supportable income, but it also stimulates the economy.
There are a lot of potential benefits for an increase in minimum wage and on the surface it’s hard to see why you wouldn’t want to increase the wage. One of the clearest to see is that an increase to the minimum wage will also increase the spending for each household during the following years. So it works to help stimulate the economy in whatever area you increase the minimum wage. Along those same lines increasing the minimum wage will lead to a decrease in poverty as well. With the decrease in poverty you will also see a decrease in government spending on welfare items because the individuals receiving the higher wage in theory will be able to pay for these services/welfare items without assistance.
The minimum wage, at its inception, was meant to help families out of poverty, according to Dallin Overstreet from the School of Public Affairs at Arizona State University. Now, the minimum wage seems to have less of an impact on poverty. Overstreet explains, “With such a small portion of the labor force earning the minimum wage and the majority of that small portion being young people who probably are not supporting themselves or a family, the underlying theory behind minimum wage seems to break down” (454). Consideration must be given to the problem the minimum wage solves, and
The minimum wage has for a long time been known to assist the poor and the families with low income. Its possible