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Minimum Wage Impact

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Today, Minimum wage is an important labor policy and it affects the nation's economy and people's welfare. Minimum wage aims to help not only those who are facing extreme poverty, but also human dignity. In addition, minimum wage policy affects the decisions of producers and consumers and affects the whole economy.
Supporters of this policy think that it increases the standard of living and reduces poverty. They also believe that it will ensure equality among workers by giving them a fair wage without discrimination by gender or race. For the whole economy, supporters believe that minimum wage spur consumption, which mean putting more money into the economy by allowing workers to spend more. The Council of Economic Advisers expected that more …show more content…

There are different findings and opinions about raising minimum wage effects on the employment. Some studies found that there is a little or no response from the employers on raising the minimum wage, because employers can shift this increase to the consumer by increasing prices. In 1994, after an increase in the minimum wage in New Jersey, David Card and Alan Krueger made a famous study comparing the fast food employment in New Jersey (where the minimum wage was raised) and Pennsylvania (where the minimum wage was constant) after and before the rise, and they didn’t find a significant effect on employment. Another study in 2010 looked at U.S. restaurant employment in 288 different counties with different minimum wage rates. The study found that minimum wage doesn’t reduce …show more content…

government imposed a new federal minimum wage in 2007 on American Samoa and the Commonwealth of Northern Mariana Islands (CNMI). While this increase had good intentions—a reply to the islanders' wages being lower than that of their mainland counterparts—the results were shocking. As indicated by another report from the United States General Accountability Office (GAO), the 19 percent decrease in employment in the workforce that American Samoa has encountered since 2008 was in vast part the consequence of imposing minimum hourly wages across different industries. The islands’ essential industry is tuna fish canning, with major employers Chicken of the Sea (Seafood company) shutting and Starkist (Tuna company) reporting enormous layoffs. In 2008 the number of workers in the canneries was somewhat more than 19,000 yet has following tumbled to

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1094 Words | 5 Pages

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

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Seven dollars and twenty-five cents an hour, or fourteen thousand five hundred per year, is the lowest amount the government deems appropriate to pay workers. This amount is sufficient for a single person with no extra expenses, but that is often not the reality of minimum wage workers. While some believe that raising the minimum wage would do more harm than good, increasing the minimum wage to a living wage would benefit society by reducing poverty, increasing productivity, spurring economic growth, and improving peoples’ quality of life. Some people say that paying workers a living wage would benefit not only the workers but the whole of society.

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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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407 Words | 2 Pages

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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.

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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.

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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.

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1536 Words | 7 Pages

The argument that raising minimum wage will stimulate the economy in a positive way is based on the thinking that more money in the pockets of minimum wage workers, as well as anyone who experiences increased wages due to employers increasing their overall salary ladder, will in turn spend that money on items and services that pour back into the businesses that need to increase wages. The idea is that not only will more people be able to afford essentials, but they will have additional disposable income to spend. Argument Analysis Pro #2: Increased Availability of Jobs Argument

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776 Words | 4 Pages

Minimum wage Minimum wage in America is poverty it creates a wage lower than the living wage. It 's only backbone of support is social welfare and the affordable care act medicaid and obama care so people who have low wage paying jobs and minimum wage has to rely on taxpayers and the government to pay with their subsidizes, Because social welfare no longer becomes support but becomes a lifestyle. Minimum wage is set by the Department of labor, and fair labor standards act they set a minimum wage and a overtime pay. Why isn 't minimum wage raised to living wage or out of poverty level? Because if minimum wage goes up so does the prices of goods.

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Many argue that an increase in minimum wage will help guide low skilled workers out of poverty and assist them into having a better career. That is not necessarily true, Many economists can agree that minimum wage jobs such as cashiers, host or a hostess are not jobs that meant to support a family. If anything by raising the minimum wage, it will put more people in poverty than guide them out of poverty. A raise in minimum wage will cause loss of jobs, an increase in the inflation rate, increase in

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