Raising Minimum Wage Increases Unemployment

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“Of course, nothing helps families make ends meet like higher wages. … And to everyone in this Congress who still refuses to raise the minimum wage, I say this: If you truly believe you could work full-time and support a family on less than $15,000 a year, go try it. If not, vote to give millions of the hardest-working people in America a raise.” -–President Obama, State of the Union address, Jan. 20, 2015

President Barack Obama is renewing his call to raise the minimum wage to $10.10. During a speech at a manufacturing plant, President Obama proclaimed, "We should be raising the minimum wage to make sure that more workers who have been working full-time shouldn't be living in poverty...". He also called for a wage increase for tipped employees such as waitresses with the possibility of having minimum wage adjust with inflation. President Obama is certainly motivated by good intentions. Families earning minimum wage will be able to immediately enjoy an increased standard of living. There are, however, negative consequences which may result from an increase in minimum wage. The proposed wage increase could actually hurt more Americans than it helps because of prices increases employers will have to make to incorporate the higher cost of employing workers.

I do not completely agree with Obama’s plan but tip workers should get a wage increase because tips are the bulk of their pay (which wouldn’t be a problem if people tipped consistently). These workers operate on a fluctuating income. A waiter could be doing a phenomenal job week after week working the same amount of hours and still get paid differently. Every job is difficult in its own way but it pays off to know that a paycheck will always be the same. One thing that pe...

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...ty Center. “National Poverty Center | University of Michigan.” RSS. National Poverty Center, n.d. Web. 23 Mar. 2013.

Politico. “President Barack Obama State of Union 2013 Speech.” POLITICO. Politico, 12 Feb. 2013. Web. 28 Mar. 2015.

Shemkus, Sarah. “Ncreasing the Minimum Wage: Pros & Cons.” Salary.com. Kenexa, July 2012. Web. 22 Mar. 2015.

Sherk, James. “Raising the Minimum Wage Will Not Reduce Poverty.” Poverty. Ed. Roman Espejo. Detroit: Greenhaven Press, 2012. Opposing Viewpoints. Rpt. from “A Solution That Won’t Work.” FrontPage Magazine. 2007. Opposing Viewpoints In Context. Web. 28 Mar. 2015.

The Restaurant Blogger. “The Truth Behind Tips.” The Restaurant Blogger. The Restaurant Blogger, 12 May 2008. Web. 24 Mar. 2015.

Wilson, Mark. “The Negative Effects of Minimum Wage Laws.”Downsizinggovernment.org. Cato Institute, Sept. 2012. Web. 23 Mar. 2015.

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