Introduction Minimum wage is the lowest hourly rate an employer can pay an employee for hours worked. The topic of raising the minimum wage is a sensitive issue for many people. The livelihood of many relevant stakeholders will be directly effected by policies created in regards to raising minimum wage, both positively and negatively. This paper will examine the history and current state of minimum wage. It will identify the issues connected to raising minimum wage, analyze the arguments for and against, and make recommendations based on the analysis. While minimum wage could refer to the federal or state minimum wage, this paper will use the term minimum wage in reference to the federal minimum wage unless otherwise specified. Summary of …show more content…
Shareholders expect a certain return on their investment, so knowing how businesses plan to handle any increase will be important to them. Business executives are stakeholders for the same reasons as shareholders. They are going to care about the affect on profits, and whether or not the shareholders are satisfied. How minimum wage affects their business’s success in non-financial ways will also be a concern. Executives must consider how the treatment of and benefits for their employees affects society’s view of them. Business managers are stakeholders and not just because they need to maximize profits for executives. The ability they have to properly staff their respective departments within the business could be affected by minimum wage. Will it cost them labor hours, decrease turnover, or …show more content…
While the general sweeping statement that everyone is a stakeholder may sound absurd, the minimum wage debate affects everyone. Society as a whole should care about the decisions being made regarding wages and how it will affect business and economy. Arguments: The Pros and Cons The Pros Pro #1: Positive Impact on Economy Argument 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 Going along with the positive economic growth is the idea that if minimum wage is increased, and these workers turn around and spend this additional income, sales will increase to the point that businesses will need to employ extra workers. In other words, increasing the wages for minimum wage positions will create more minimum wage
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A controversial topic often debated between liberals and conservatives is the minimum wage issue. While many liberals advocate for raising it, a number of conservatives are persistent on keeping the rate constant; however, studies show that raising minimum wage would not alleviate this country’s poverty issue and would, in fact, increase the unemployment. For these reasons, the minimum wage should not be raised. Increasing the minimum wage would cause economic strain in many ways to workers already living in poverty. According to James Sherk’s article: ‘Raising the Minimum Wage Will Not Reduce Poverty’, raising minimum wage to seven dollars and twenty five cents would cause an estimated eight percent of current workers to lose their jobs.
The feeling of working endless hours and days for years on end with no improvement in pay or life style is the reality for millions of people living in the United states. Those who have to struggle due to the fact that he/ she wasn’t fortunate enough to get an education or have a chance to get an education and they’re for they have to live with the reality of making minimum wage in hopes to somehow make ends meet every month. The topic in which will be broken down today is the topic of minimum wage and how raising it would help ease or eliminate some of the issues which stem out because of it.
Workers across the United States wish to raise the minimum wage to ten dollars. Minimum wage should not be increased because people who work at fast food restaurants should not get paid as much as someone who workers harder than they do and it would not be a benefit to the people of the United States. Minimum wage means you get paid the minimum you can receive for working every hour, why wouldn’t an individual want to get paid at the maximum limit they could earn instead? Employees who would like to get a higher income need to get a more professional job. There are plenty of fast food restaurants in every state and they are always hiring full-time and part-time jobs, but shouldn’t adults work somewhere with more benefits, such as a hospital or a school?
Minimum Wage In this paper I wish to examine two different points of view on rising or not the minimum wage. Minimum wage, the lowest daily or monthly remuneration that employers may legally pay to workers. It was set for the first time in 1939 and varied with time. The most currently change has been made in July 2009 and people are willing changes to be done.
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.
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.
Increasing the minimum wage only does positive growth because “...authors found little or no evidence of a negative association between minimum wages or employment”. ("How Does a Federal minimum Wage Hike Affect Aggregate Household Spending?”) Increasing the minimum wage will only cause positive growth in a topic of employment. Raising the
It has been nearly 14 years since the last increase in the federal minimum wage. To begin with, raising the minimum wage to match inflation and productivity would benefit the economy by increasing consumer activity and stimulating job growth while lowering the federal deficit. A journalist summarizes, “The federal
This research will converse numerous opinions on minimum wages. It will also offer answers to questions like where did minimum wages get its start? Impact on increasing minimum wages, how it affects the companies, how do wage increase why were minimum wages created? Confer the benefits of providing minimum wages with benefits the workers, presenting the pros and cons. How are minimum wages benefiting the economy, do it help increase the economy?
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.
In today’s world, there is a rising controversial question, should minimum wage be raised. There are several statistics defending each side of this issue. Some people, for example, that raising the minimum wage could benefit so many individuals provide for themselves and for their families. While on the opposing side people say that raising the minimum wage could potentially ruin small businesses. Today’s minimum wage is $7.25.
The people who make minimum wage very clearly express their theory that higher pay will benefit them and show many valid points on why it should be increased. Minimum wage workers work hard and "[s]ince the 1970s, productivity has risen dramatically... [y]et middle- and low-wage workers ' incomes have barely changed" (Dorn). These circumstances make it hard for low wage workers to stay above the poverty line when the average low wage worker makes only $15,000 annually (Dorn). Before inflation, the minimum wage was surprisingly much higher, "in 1968, the minimum wage was close to $10 per hour in today 's dollars" (Dorn).
(Mankiw, 2008) But it is bad for those employees who get laid off (i.e. become unemployed) because the employers now find it expensive to hire them due to the minimum wage legislation. (Besanko, David, Dranove, & Shanley, 2000) Thus, minimum wage leads to a rise in inequality. This would be explained using a hypothetical example.
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.