When people think about raising the minimum wage most of them are excited because their check would have more cash, but, they don’t think about the bad effects that it will cause other employes. Minimum wage is the lowest daily or monthly remuneration that employers may legally pay to workers. In California raising the minimum wage has become a big argument between those who think raising would have more cons and those who think they have more pros. Despite the fact that people think raising up the minimum wage will help many people get out of poverty. I do not support raising the minimum wage, and the reason is as followed. When the minimum wage is raised, workers are priced out of the market and many of them lose their jobs.
The federal minimum wage has been increased twenty-two times since President Franklin Delano Roosevelt signed the bill into law in 1938. President Roosevelt was an avid supporter of a federal minimum wage as he says that “no business which depends for existence on paying less than living wages to its workers has any right to continue in this country.” Raising the federal minimum wage has many pros and cons, but is a necessity to thrive in society. People have argued that raising the minimum wage will cause inflation, but it will create various economical benefits, income benefits, production benefits, and improve racial justice.
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
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. Increases in job growth and economic activity will happen when the minimum wage is elevated. If the minimum wage was increased it will “inject 22.1 billion net into the economy and create about 85,000 new jobs over a three year period”. (“Raising the Federal minimum Wage to $10.10 Would Lift Wages for Millions and Provide a Modest Economic Boost") Thousands of new jobs will be created and it will put billions of dollars into the economy.
Many argue companies wouldn’t be able to keep the same amount if workers, and half a million jobs would be lost (Minimum wage). This is not true, the extra money in customers hands would raise the economy enough to cancel out the extra costs, and actually create more jobs. Jobs might initially be lost, but in the long run, they will recover with a vengeance. In the end, when people say raising the minimum wage would lose jobs, it is a temporary loss that will recover within a year or
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.
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? This dialog will have several diverse points of views based on the belief of diversity of authors. Presenting the difference of opinions doesn’t necessarily means there is/is not a tangible answer to whether maintain low wage benefits anyone. It will show some of the ways families who receive a wage increase continue to suffer.
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
Low-wage workers and other employees support a raise in minimum wage. An article by Barbara Mantel states, “Supporters of an increase say raising the minimum would cause minimal job loss while putting money into the hands of low-wage workers who would spend it, boosting the economy. ”(Mantel, Barbara) The money a business pays an employee may be going back into the economy, however, the money doesn’t necessarily go back to the business. Businesses need a profit to pay for their supplies and necessities within their building, however, raising minimum wage will decrease that business’s profit, therefore, limiting them to how much supplies they can use.
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.
The opposing arguments about raising minimum wage is the increase will force a strain on companies and force them to slash jobs. Around two thirds of low wage workers work for large businesses like McDonalds, WalMart, Burger-King, and ninety percent of businesses like these are profitable the increase of minimum wage would not have a huge impact on these companies where they would lose that great of
Small Businesses could go out of business if we raised the minimum wage to a higher price. This is a widely debated subject of money, income, and the effect raising the minimum wage can have on businesses and the economy. Currently, the federal minimum wage is seven dollars and twenty-five cents and have been established that way since 2009. It has been said minimum wage should be increased to accommodate living expenses and travel time to places of work. The problem with raising minimum wage , that many people do not realize, is how it affects big and small businesses.
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.
For instance, from the article “The effects of minimum wage” by David Neumark states that employers will try to keep away from low-skilled workers if the wage were to increase because it would cause them to be wasting money to train them; especially for students and high school graduates who are in absence of any work experience. With minimum wage increasing for the past couple of years it makes it difficult on employers who run small businesses to hire more new workers because they too are also citizens that have to pay their taxes and extra just to keep their business up and running. Such as the author Gina Kim who wrote the article “Minimum wage: helpful or harmful for small businesses” states that 85% of small businesses pay workers a bit more than the minimum to keep their workers interested in the job and they have to make profits out of their business to keep it on track. These businesses cannot innovate if the wage increases because then the labor market will pick up the prices on materials as well creating more of a problem for small business owners to keeping their company open for as long as possible and their solution would be to not hire a lot of employees. This pretty much explains the reasoning about how it will be troublesome for new fresh workers trying to just gain experience and get hard earned