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. The essay starts off with a quote, “Raising the minimum wage… would insure… that a family of four with a parent working full time at the minimum wage did not have to raise their children in poverty” This quote right here is one of the best ways to agree with raising the minimum wage mostly because we as a society have
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In the article, he tells the reader that Congress took action to increase the minimum wage in three seventy cent increments. Within three years, including 2007, it rose from “$5.15 to $7.25 an hour” (Sherk). After informing the reader of the minimum wage increase, he begins arguing why the hike would carry negative effects. He claims that an increase in the minimum wage would put “some less-skilled workers out of work” (Sherk). Also, he claims that the increase would cause “300,000 teenagers and young adults” to lose their jobs (Sherk).
Raising the minimum wage has been one of the biggest debates during the 21st century. One side of the spectrum argues that raising it will make it so they have a living wage, while the other argues that raising it will hurt the economy. Whichever the case is, people are clearly divided on this issue. Before Oregon passed the 15 dollar minimum wage law, people wrote arguments to try to either prevent or pass this law. The article, “How a $15 minimum wage would affect a real business: Guest opinion” by Lee Spector argues that raising the minimum wage would hurt small businesses like the one he earns.
Today more minimum wage works are exchanged of making money for their families (smith 2) In order for our country to be stronger minimum wage needs to be raised because of their children and bills. One reason why the minimum wage should go up because they need more money for their children. “If we increased the minimum wage workers will earned 6,000 dollars more for their family” (smith 3) The minimum wage
Why we Should Raise the Minimum Wage In Kevin A. Hassett's essay which appeared in American Enterprise Institutes online issue March 10, 2013 , '' Why We Shouldn't Raise the Minimum Wage'', he responds to announcement proclaimed by President Obama, in his 2009 State of the Union address, regarding the minimum wage. '' In the wealthiest nation on Earth... no one who works full-time should have to live in poverty.'' President Obama 2009 . Hassett believes that the President's resolution to raise the minimum wage would prove to be counter effective. He does not believe that it will solve the , present and worrying issue of poverty in the country.
After some research, he realized that both sides have valid points, just as the title tells us. Although the author says both sides have a valid argument he takes a stance for supporting raising minimum wage when it could negatively impact our economy in many ways such as destroying our economy by increasing poverty, inflation of prices for consumer goods, and increasing unemployment because of the shortage of of jobs due to businesses laying people off.
The point is that, with the increase of the minimum wage, firms that face higher costs cannot maintain profits simply by raising prices regardless of demand for their products. While the increase of the minimum wage will increase demand for those products purchased by low-income people, it will not yield an equal increase in demand for all
The arguments against not increasing the minimum wage are rather straightforward. The main argument is individuals currently earning minimum wage are not receiving a living wage, therefore something must happen to help Americans currently living in poverty. Whether the changes made are for an increase in minimum wage or through alternatives such as an increase in EITC guidelines, it is a blatant issue needing resolve. The “Federal Minimum Wage: Is the Federal Minimum Wage Good for the Economy” article states that workers making the federal minimum wage are only earning about $15,000 per year on a 40-hour workweek. There are very few people who can earn such a small amount of money and can live comfortably.
Smith would suggest that today’s inequality gap is unhealthy to both people and society as a whole, and raising minimum wage is a solution to address the current social inequality issue. Labors must earn wages that will sustain their and their families’ basic life. However, in the process of determining wages, capitalists are usually the decision-makers. On one side, they tend to make labors’ wages as low as possible to generate more profits, and sometimes even lower than labors actually deserve. On the other hand, labors seldom have the bargaining power to negotiate wages with their employers.
Families as a whole will argue the point that an increase in minimum wages will allow families the abilities to put more food on their tables, while providing the base necessities need in the family. However, most analyses of the minimum wage focus on its unintended employment consequences. (Freeman, 1996) Some major companies have agreed to increase the minimum wages in some States, nevertheless, the amount that the wages have been increased by is not enough to get a family from beneath poverty. Proven the fact that job markets in some cases are not working in the best interest of their employees.
The argument of raising minimum wages have been really popular recently. In the article, the author talks about all the benefits of raising the minimum wage and what states have followed the bandwagon in doing so. The overall dilemma regarding the raise of minimum wage limits is whether raising the minimum wage really going to help the economy or is it just going to cause problems for the middle and upper class? The law of economics will introduce inflation into the raise and the economy will end up in the same position as before. For example, the standard of living on the west coast and the east coast is different because of different wage levels.
Ever since the Great Depression, the minimum wage has been in effect — in order to reduce poverty and solidify that employees are paid a reasonable sum. Although the minimum wage can be beneficial and advantageous for individuals and to our economy as a whole, it can also be detrimental to our nation’s finances. The federal government should not allow this to pass, but rather they should increase the citizens’ knowledge of the pernicious consequences and complications that will arise with a higher minimum wage, especially one as high as $15 per hour. Some of the resulting conflicts that will occur if this possible raise in the federal minimum wage takes effect are: job loss, business failure, higher consumer prices, and a lower demand for uneducated employees. Although it may appear as if increasing the federal minimum wage will help to lift families out of poverty, in
The idea of minimum wage, and all its facets, has been controversial since its inception. Franklin Delano Roosevelt instated the Fair Labor Standards Act of 1938 as part of the New Deal, which established minimum wage; this bill came during a time of tremendous need: the Great Depression (“Fair”). During this time, businesses were grossly underpaying and overworking their employees in order to make a larger profit margin, in the long run this stifled the economy and only made things worse. Minimum wage allowed low class families to contribute more to the economy, perhaps helping the country out its economic downturn (Elliot). Twenty-two times the minimum wage has risen in order to compensate for inflation and other factors (“Minimum”).
1. Should we raise federal minimum wage? A big topic that has been on the news a lot was if we should raise minimum wages or should we keep them the same. Tons of people are working hard but the workers don 't make enough money to make a living they need help from the gov’t to help pay their expenses.
Introduction The income for minimum wage should be higher to be fairer to poor people and to fix the American money distribution system. In 2009 the top 1% of Americans has almost 3x more money than the bottom 80% of Americans (Inequaity.org). If the upper class were paid less and the lower class were paid more that would help fix the money distribution system. Wages and Salaries
Understanding that both articles had great reasoning I believe that a raise in the minimum wage can have a negative impact in our economy and that it should be something that shouldn’t be completely abolished but carefully monitored. Like stated in Minimum Wage Laws Are Immoral and Harmful, not all employees will give their full effort in the workplace because they won’t need to worry about getting a raise. The act of raising minimum wage doesn’t only affect the employers but as well as the consumers, by causing a rise in the company’s merchandise. I understand that some jobs don’t pay their employees enough, but what are the qualifications that the employees have, do they have enough experience, or a degree and have they simply demonstrated their ability’s. Keep in mind that many people just ask but don’t give to