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Impact of raising the minimum wage
Positives of raising minimum wage effects
Positives of raising minimum wage effects
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Poverty in the United States will keep increasing if Congress does not raise the minimum wage as living expenses continue to rise. With expenses such rent and food, millions of people in the US are struggling to afford the necessities to keep them alive. In order to help the working and middle class, President Barack Obama wants Congress to raise the minimum wage from $7.25 an hour to $9.00 an hour by the end of 2015. Unfortunately, CEO’s and the Republican Party in the US are against raising the minimum wage because it will cut into the companies’ profits and claim that it will cause job losses. There are several benefits in raising the minimum wage, as it reduces the number of people in poverty which in turn reduces the government expenditures to support people living in poverty. Also raising the minimum wage is beneficial to the economy because it creates wage growth which in turn gives people more money to spend. Finally, another benefit in raising the minimum wage is that it would reduce the income inequality gap, as there are many CEO’s in Canada and the US that make millions of dollars every year; while people earning minimum wage are struggling to survive. In the end, Canada and the United States need to raise the minimum wage in order to help people rise above the poverty line which will in turn help grow the economy. To begin with, the government in the US needs to raise the minimum wage in order for people to rise above the poverty line, which will result in reduced government expenditures. Millions of people every day are working to support one’s family, but the Federal minimum wage is not enough money for families to spend on food. With 46.5 million people living in poverty in the United States, the government is f... ... middle of paper ... ... help improve the economy. Therefore, raising the minimum wage is beneficial to the economy as it creates jobs and raises the income of millions of people across United States and Canada. The government needs to raise the minimum wage as it raises the income of people, which saves the taxpayers money and allows it to be used on things such as schools and fixing roads. Also, increasing the minimum wage creates wage growth, which helps grow the GDP, as people have more disposable income. Lastly, increasing the minimum wage reduces the wage gap between the CEOs and working class, with the purpose of distributing more of the profits to the working class to help pay for health care and education. In today’s world of capitalism, there should be a cap on how much one can make in a year in order to help the working class, who ultimately help keep the companies in business.
Understanding how the minimum wage level functions to affect poverty in a given society is crucial for informing policy in a number of important areas. Indeed, examining the link between poverty and the minimum wage is necessary for policy-makers working to establish sound economic policy as well as labour and social advocacy groups seeking to ensure the minimum wage is at a level sufficient to ensure workers can meet their most basic and fundamental needs. Readers should be concerned with the link between the minimum wage and levels of poverty because poverty is a particularly significant and impactful social issue. High rates of poverty can both negatively impact the economy, as well as contribute to a host of negative social issues. At the same time, there may be questions regarding the impacts to poverty associated with the minimum wage. Research which better clarifies this link is particularly important. For these reasons, investigating the link between the minimum wage and poverty is essential. This essay will provide a summary of two academic journal articles investigating the link between poverty and the minimum wage. Each summary will discuss the particular focus of researchers, the contribution of the study, the methodology employed by researchers, as well as their findings and conclusions. Finally, the essay will conclude with a brief commentary regarding the relevance of these articles to the larger topic, as well as their effectiveness in promoting learning.
Imagine a world where you are working overtime, seven days a week, yet your kids are starving. You can’t get the education you need because you don’t have the time and money to afford it, and you can’t change jobs because this is the only one you can get. Unfortunately, this is the reality for millions of Americans living today. The federal minimum wage is too low to help families, and actually mathematically speaking, too low to survive on. The quality of life for minimum wage families is terribly low, and that is unacceptable. As humans, we should be looking after others and helping the poverty come out of their continuous cycle. Raising the minimum wage would not only help families be able to afford a better quality of life, but help them to afford healthy food, get an adequate education, and invest in the necessary health care they need.
A higher minimum wage would benefit families of the working class who need the extra money in order to survive. Not only are higher wages needed but companies can afford to give them. With the minimum wage at one of the all time lows, an increase is of the utmost importance considering it would strengthen families and the economy.
The increase in minimum wage is extremely crucial towards fixing the economy. As President Trump as mentioned, he plans to raise the minimum wage, in order to fix the economy. This process is extremely important, since inflation in prices often leads to a decrease in consumer spending by citizens on minimum wage. Recently, Trump discussed how the economy is driven by consumer spending, and workers with low incomes are less likely to spend extra money. In addition, he has demonstrated that raising the minimum wage is a strategy to help the economy increase and flourish. The use of a higher minimum wage would greatly aid citizens struggling with low levels of income. Not only will this process lead to higher levels of spending, but also increase economic growth. This process will serve not only as a benefit towards citizens on minimum wage, but also for the economy as a
In conclusion, minimum wage workers need an increase in their incomes. They need more money to provide food, shelter, and other necessities for their family and themselves. Minimum wage should be increased because poverty will be reduced, it will be good for the economy, and provide more for families. Raising the minimum wage is also about reducing the inequality of it.
I feel that minimum wage should be higher because for anyone to make a decent living they have to make the money. However, if the minimum wage was higher some individuals could make a better living for their families instead of living in poverty. My take is minimum wage has a big effect on the world today and if things don’t change the world will never change. People will continue to be on welfare because they can’t afford to feed their families making minimum wage.
By raising the minimum wage, it would stimulate the economy in many ways. It would “increase the purchasing power of many workers whose wages would also go up” according to the article Raising the minimum wage: Guide to Critical Analysis. Another way that it would help the economy is that it would decrease the amount of people that would need government welfar...
Government must provide a floor against poverty by providing an adequate minimum wage. The essential role of the government is to have the people's best interest in mind and one way to do that is combating poverty. Although there are many solutions when it comes to tackling poverty, one ideal solution is raising the minimum wage since that will benefit majority of the population. Infact by raising the minimum wage it will cause a positive cycle of economical benefits for small and large business globally. For instances, when working class families benefit from a raise in their wages they are able to contribute back to the market by having extra money to spend on goods that they normally can not afford. Buying these goods equal the need for
There are opportunities to better the economy of America. Raising the minimum wage is one of those opportunities. Raising the minimum wage can have a positive effect on the country. The minimum wage is not where it ought to be. The minimum wage was higher in the 50’s and 60’s in today’s dollars than it is now. With an increase in minimum wage, people will make more money when working low income part-time or full-time jobs; giving workers more financial stability. The paychecks and yearly salaries of the average low income American family would began to rise. It is an advancement in a conclusively good direction, but it will take time and progressive steps towards a better minimum wage that meets the cost of the necessary standard of living.
Poverty is a huge problem in America that has been around forever. There is also the problem of the minimum wage, and how it relates to poverty, that has been studied by many researchers. According to the U.S. Census Bureau in 2015, 13.5% of Americans suffer in poverty, and the average annual salary of minimum wage workers is $15,080, which is right below the poverty line for two or more person families (David Cooper 1). This brings us to the question, will raising minimum wage reduce poverty? Raising the federal minimum wage would fail to reduce poverty because according to research, most benefits of raising it would not go to those in poverty, unemployment would rise, and business would be hurt and forced to raise their prices.
When approaching the subject of minimum wage increases, we consider the topic to be extremely controversial. Both proponents and opponents argue what impact it will have on the economy and how to bring low-income wage earners out of poverty. Some claim it will have a negative impact on small business and decreased employment rates while others think, it will improve low-income families’ standard of living and boost economy. Increasing the minimum wage assists in decreasing poverty but more support programs are need.
Currently the United States of America is undergoing economic difficulty, with the gaps between the upper “1%” and the “99%” only growing in size. Along with this ever increasing gap, many Americans are finding that they are no longer making enough money to simply survive in the current economic climate. Due to this, there have been calls for the Federal Minimum Wage to increase from it’s current $7.25 an hour to a much higher number, many calling for $15.00 an hour. However, I propose and argue that the implementation of a federally mandated, flat-across the board, minimum wage brings more harm than good. It reduces the success and viability of new and growing small businesses, forces massive wage increases upon large businesses, and can lead
There has been substantial complication in America in recent years on deciding an appropriate and feasible setting of the minimum wage requirement. It is understood that much of America’s income inequality can be defined by the distribution of income. Furthermore, looking at graphical depiction of the wage distribution, we are able to identify that an ample amount of workers are earning low wages and a small amount of workers are gaining significantly. Many of these low wage earners are those whose wages are determined by the minimum wage requirement; therefore, there has been much of an attempt to increase the minimum wage in order to correct income inequality in America. In my proposal I will be underlining the cost and benefits of introducing
The minimum wage seems like a just and compassionate policy: its purpose is to assist individuals in the greatest need by keeping them out of poverty. Although few people would argue that a household supported by one or more minimum wage incomes can enjoy the greatest comforts that society has to offer, many believe that it is still a beneficial policy because it seeks to meet at least basic needs. However, Roger Miller and other economists argue that however effective the minimum wage law was when it was enacted, it is no longer serving its intended purpose. Miller (2017, 98-99) claims that poor families are often poor not because the minimum wage is not high enough, but rather because individuals in those households
Issues pertaining to minimum wage might not affect all Americans, but for those that it does affect: we might ask why the controversy? There are no simple answers as this battle did not develop overnight. Minimum wage is something of much technicality, researches on minimum wage help to develop answers on whether or not it affects employment or unemployment, another issue is it helps to determine if inflation will occur. It is more than just coefficients or simple the elasticity of wages. Our group argue from different alternatives, at this time we feel as if the wages should go up over a gradual period of time. We do not feel as if: at minimum wage a family is able to maintain the basic living standards.