When the minimum wage increases, business owners will have reduced profit, sales will fall off, and prices will raise. Eventually, the owner will not get any profit because the store will get $10 off sales but the worker demands $15 and the worker will have to be fired. A high minimum wage sounds like a great idea in the free market, but it seems like a joke. Customers will not agree to pay more on a product just because the business has to pay the worker more and they will lose a profit they really cannot afford to
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. “People don’t go to college to earn a $9.10 minimum wage: Guest opinion” by Justin Norton-Kertson is an article that argues against Lee Spector’s article. Although both
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. In 2013, an estimated 12% of workingwomen would have benefited from a one-dollar increase in minimum wage. A disproportionate portion of minorities would benefit from a minimum wage increase. African Americans represent 12% of the total work force, but are 18% of workers affected by an incrementation. Similarly, 11% of the total work force is Hispanic, but Hispanics are 14% of workers affected by an incrementation. In 12013, a moiety of the benefits of a minimum wage increase would have gone to workers in households with an annual income of less than $35,000. In fact, 18% of the benefits would go to households with an annual income less than $20,000. Benefits of an incrementation disproportionately avail those working households at the bottom of the scale. Albeit households in the bottom 20% receive only 5% of national income. Benefits of the antecedent minimum wage increase peregrinated to these workers. A majority
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
According to the article "Raising the Minimum Wage Is Still a Bad Idea" by Ramesh Ponnuru when simulating a raise for the fast food workers the poverty range did not change at all, not even one percent. Therefore, it kind of overlooks the argument that it will help those who are in poverty, because they will still be in poverty even after the extra money. The main beneficiaries of a supposed raise to fast food workers would actually be the middle class, and that is not something that is really needed since the ones who need the extra help are those who are in poverty. If in order to give fast food workers extra money they raise the minimum wage it will still hurt those who are in the poverty level most likely. The reason for this is that by raising the minimum wage it makes the employer look for workers who are more deserving of the extra money. Therefore a lot of the unskilled workers will struggle to find jobs in this market and will go from low waged workers to unemployed which will hurt them even more. In this case, overall it would be a lose-lose situation for the unskilled workers in poverty because although there will be a raise in the total money they can earn, it will be a whole lot harder to find a job for them due to their lack of skill, and maybe a more skilled middle class worker coming in their spot. For example, if the minimum wage goes up a person looking for someone to hire for their store will pick the person who can do the job better even if it is a little bit more money because the gap of minimum wage would not be that high so therefore the unskilled workers, who are usually already in poverty because they were not taught any skills when they were young because they grew up in
Have you ever thought that you wanted a raise at work but did not have reasons? In this essay you can give your boss these reasons and get more money. The minimum wage in 2012 was $7.25. The minimum wage is a large-scale reason of poverty. 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.
Although a minority of workers will experience pay raise or may even be brought out of poverty, the majority of workers would face unemployment and, if not that, would only be allowed to work for a short period of time in order for their bosses to compensate for the raise in mandatory pay. Also, some economists dispute that raising the minimum wage will have little to no effect on poverty rates altogether. For these reasons, I do not believe the minimum wage should be
According to William Dunkelberg, a writer for Forbes magazine, by raising minimum wage there could become less jobs than before. Though the people who have jobs would be making more money, smaller companies wouldn’t be able to pay for their employee’s, and would have to let people go. “Small businesses stay in business
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. 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
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
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.
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. Another potential benefit of an increased
The Fair Labor Standards Act of 1938 states that workers will be given a livable wage. By definition, a living wage is the minimum income necessary for a worker to meet basic needs. In the words of congress, it is “the minimum standard of living necessary for health, efficiency, and general well-being.” This poses the question: “Is the current minimum wage a livable wage?” The answer, unfortunately, comes back negative. The current federal minimum wage, at $7.25, is worth nearly 38 percent less compared to 1968 when the federal minimum wage was valued at its highest ($11.72 in 2016 dollars). Given the facts, it is justifiable to raise the federal minimum wage as it would amount to a more livable wage, stimulate the economy, and provide better circumstances for workers of color and women.
We do not know how the rise of minimum wage will affect us in the future here in California, but in Seattle, Washington the minimum wage is now $11.00. The money it is not making a difference. A study in my fourth source “Jacob Vigdor, an economist at the University of Washington and one of the authors of the report...leading the researchers to conclude that the minimum wage reduced the number of hours worked quarterly by 3.2, roughly 15 minutes each week.Those figures do not include workers without jobs…Workers employed by thriving businesses who did not lose any hours could have enjoyed welcome gains. On the other hand, workers who had a hard time finding a second job to make up for their lost hours might have been earning much less.”(Source 4) The rise of the minimum wage is not working in one place, it does not mean it will see the same results in other places, the first step of improvement is identifying the errors. If Congress can find the issues between why the rise of minimum wage is not working in Seattle they might be able to find a successful way to improve the problem why minimum wage has to rise at all. Minimum wage jobs were created for inexperienced teens but, now there are jobs where you start at the minimum. It is not a wage meant to live off of but the minimum wage job is supposed to be a temporary job as you climb your way up to your own personal
There are many other things you apply for to make more money. I can apply for cash assistance. I can apply for income. I can apply for free health. It is lazy but some people truly need it and deserve that kind of welfare. If they raised the minimum wage and took more money in taxes for things like social welfare i think it would help bring us out of poverty. And help many of those in poverty. Raising the minimum wage can be risky but us much needed there needs to be a way they can make it happen without making things worse. They don’t need to raise it so high it makes the prices go way up i think they just need to raise it to living wage and not poverty and keep the prices of goods the same and i think it would get more money flowing and things wouldn 't seem so expensive that is needed to live in today’s modern world. Two extra dollars an hour can go a long way and could eliminate tax deductions for things like social welfare because as we escape out of poverty less money from that would be needed to get spent and would save the government money also put more money in our pockets. By not paying so much subsides and People who have fast food jobs or jobs paying minimum wage wouldn 't worry about bringing in money for themselves because living wage would be minimum wage and is stable. Why punish the people who work minimum wage jobs because somebody has to work that job and if they don 't get paid enough they have to rely on something to help them get by raising minimum wage to living wage would a lot more people be independent not just from the government but from other people because one person with a minimum wage job don 't pay rent don 't pay all their bills but bringing in living wage compared to minimum wage would help if there wasn 't