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The Consequences Of Raising Minimum Wage

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America today is faced with its fair share of problems. There are low employment rates, debt, and inflation everywhere, riddling the economy with issues. There is absolutely no reason that any American citizen should want to pile upon the problem. Yet, some believe that it could be done by raising the federal minimum wage to fifteen dollars an hour. Fortunately, history, economics, and common sense prove the minimum wage raise proposition wrong. In cities like Seattle, Washington, the minimum wage raise has been adopted. Seattle 's local government intended to increase their unimpressive employment rates. The rates had been rising slowly over past years. Almost as soon as the minimum wage was raised to fifteen dollars, the once climbing employment rates faced immediate decline. Just as the economists in the surrounding areas had predicted, the results of the raise were disastrous. Seattle is just one of many examples of the danger raising the minimum wage poses. …show more content…

Maybe it does not effect them directly, or they consider it "just a few people losing their jobs." What do these dropping rates show for themselves? According to economists from the American Action Foundation, raising the minimum wage just one dollar caused 747,700 people to lose their jobs. That is just considering the adults. Teenagers from ages sixteen to nineteen also make up roughly 25% of the workforce. According to statistics, in areas where the minimum wage increased one dollar, showed the teenage unemployment rates skyrocketing up to 4.67 on a five point

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Lowenstein believes that raising the minimum wage at a slow and steady pace would benefit unemployment rates and employers. “In effect, a minimum wage nudges employers to adopt a pay scale where they, also, are better off,” (Lowenstein, 2016). Business owners hire people when they feel it will enable them to serve a higher number of customers. “A business that is humming will not sack a worker just because the minimum wage is lifted by a buck,” (Lowenstein, 2016). This statement is implying that the minimum wage does not necessarily correlate with unemployment rates increasing.

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Many people are afraid that by raising the minimum wage it will hurt the poor, reduce other job benefits, and reduce competition. A 1997 National Bureau of Economic Research study estimated that the federal minimum-wage hike of 1996 and 1997 actually increased the number of poor families by 4.5 percent (Henderson). Employers respond to forced higher wages by adjusting other components of employee compensation, such as health insurance or other benefits. Although few minimum wage workers have employer-provided health insurance, employers have found other ways to adjust, such as cutting on-the-job training (Henderson). Gov. Schwarzenegger’s proposed a 15 percent increase in the state minimum wage would destroy about 35,000 to 70,000 unskilled jobs-putting 1.5 to 3 percent of young Californians out of work.

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The people who are against the increase of minimum wage often argues that it will harm young adolescents the most, and that they will need the experience of working at the minimum wage. It is significantly unfair with other states, such as California and Massachusetts. The minimum wage for these states gives other states a disadvantage in the economy. I feel that every state should have the same price range of minimum wage just to make every state feel that they are equally the same without any disadvantages. Raising the minimum wage is something that should’ve been done a long time ago.

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Compare to the charts depending of the cost of living there are some changes that can take place and raising the minimum wage stats whereas living can be better for society and Americans. Minimum wage is an issue still today and is debated word wide with eclectic audiences. Minimum wage will always be looked at s priority and poverty with low income and housing as a minority family. When the day has set and the family is around the dinner table for dinner then the issue of minimum wage comes up in the conversation, how can the family do better, what can we do to be middle class if not top class where the millionaires lives and the status of a millionaire. Not sure how a millionaire lives but comparing to the stats society is way off to another side of the map.

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For example in Seattle, the minimum wage was made to be $15, which led to a rise in unemployment. Many employers cannot afford to pay everyone that much money without taking a loss, so a higher wage means less jobs.

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Many opponents to raising the minimum wage might protest that those working a minimum wage job are often teenagers without anyone to support, the study by the Economic Policy Institute has found that perhaps those who benefit most from a raise in the minimum wage are the children of minimum wage workers. The study states that, “The workers who would receive a raise do not fit the stereotypes of low-wage workers: Among affected workers, the average age is 35 years old, nearly 88 percent are at least 20 years old, and more than a third (34.5 percent) are at least 40 years old. Of affected workers, about 54 percent work full time, about 69 percent come from families with family incomes less than $60,000, and more than a quarter have children. The average affected worker earns half of his or her family’s total income,” (Cooper). The image of a minimum wage worker is very skewed by opponents of a raise in the minimum wage.

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With the thought of minimum wage being raised the nation has to think of the upsides and the down side. For me, however, there is only a downside. If the minimum wage was to be raised to 15 dollars and hour, then the cost of living, food, and many other factors of everyday life would also increase in price. When the cost of everything else goes up, then many people would want the minimum wage to follow the trend and increase even more.

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