The Consequences Of Raising The Minimum Wage Essay

The Consequences Of Raising The Minimum Wage Essay

Length: 831 words (2.4 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

The Consequences of Raising the Minimum Wage
Minimum wage is the “legally mandated price floor on hourly wages.” (Minimum Wage par 1) Minimum wage at the federal level is currently 7.25. Each state can raise their minimum wage, but it cannot go below the federal level of 7.25. About “3.3 million people are at or below the minimum wage level.” (DeSilver) Most of those workers work in restaurants, retail and as cashiers. Half of the people who making minimum wage are under 25 and 64% work part time. There are people who believe minimum wage should be raised.
Many Americans believe minimum wage is too low for the standard of living. Many proponents claim that increasing the minimum wage would decrease poverty. In recent years “studies have indicated that raising the minimum wage to $10 an hour would increase paychecks for North Carolina’s workers by $2 billion a year.” (Freyer) Another popular belief is an increase in purchasing power would follow the increase in minimum wage, meaning your dollar could buy more than it used to. Minimum wage needs to be adjusted to inflation. Even since 2009 “the current $7.25 per hour, the federal minimum has lost about 8.1% of its purchasing power” (DeSilver) Some people even claim raising minimum wage will lower crime rates. Statistically speaking people of poverty commit more crimes. The thought process is with the increase of the paycheck and increase in employment the crime rates will go down.
However, they fail to see the consequences associated with a raise in minimum wage.
Increasing the minimum wage would in fact increase poverty. If companies had to pay more money for jobs they were willing to pay minimum wage, they would be forced to lay people off. Raising the minimum wage to “$10.10 wo...

... middle of paper ...

...on to the increase of prices, unemployment will also cause crime rates to rise. Unemployment rates work hand in hand with price increases to raise the crime rate “The unemployment rate influences burglary and motor vehicle theft, while real minimum wage influences murder, robbery, and grand larceny.” (Corman & Mocan)
These factors work together to cause an overall depression and increase in unemployment. Increasing the minimum wage might not bring us back to the Great Depression however, it will severely impact the economy negatively. Unemployment rates will soar sky high. Companies will pass on their increased labor expenditures onto the customer. Everyday necessitates will become more expensive, making them available for less people. Some people will turn to crime to provide for themselves or their family. This can all be prevented by not raising the minimum wage.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The Cost Of Minimum Wage Essay examples

- Minimum wage is generally revised to help adjust for the inflating prices, in a microeconomic prospective, it can affect businesses, individual workers and families, both in positive and negative ways (Ingram, n.d.). In the UK, the minimum wage can also help the government in numerous ways, Giles (2014) quoted that it can help “the government in improving social justice and making savings for the exchequer in welfare payments”. Having minimum wages limits the ability for firms to negotiate wages, particularly for their lowest-level employees....   [tags: Minimum wage, Employment, Wage]

Better Essays
2050 words (5.9 pages)

Minimum Wage Is A Good Thing Essay

- The minimum wage has been a topic that has always been discussed. News about increasing minimum wage appears on the news every year and people start talking about whether raising the minimum wage is a good thing, and the effects that come with the increase of minimum wage. There have been many rumors, and discussions about raising the minimum wage, some arguments may be misleading due to not knowing the effect of raising the minimum wage. The minimum wage is defined as the minimum amount the employer has to pay their employees for their labor....   [tags: Minimum wage, Wage, Employment, Unemployment]

Better Essays
1484 words (4.2 pages)

Essay about Minimum Wage Should Be Legal

- There has been a discussion over the minimum wage for years, however just recently the decision was made by the United States government to raise the minimum wage from around seven or eight dollars (depending on state) to twelve dollars by 2020. Several people in support of this wage increase are minimum wage workers who find it difficult to live and support themselves and a family on such a small income. With that argument, the New York Post replies with “The minimum wage is by design an entry-level wage; it is not supposed to be permanent” (Trugman 1)....   [tags: Minimum wage, Employment, Wage, Working class]

Better Essays
1251 words (3.6 pages)

The Effects Of Minimum Wage On The United States Essay

- A raise in the minimum wage is only a temporary solution to fixing the problems in the United States. The federal minimum wage was introduced in 1938, during the Great Depression, and has already been increased 22 times. There are already 19 states that pay their employees well over the federal minimum wage. The highest minimum wage in the United States is in Seattle, Washington, and is set at fifteen dollars an hour. Interestingly enough, if minimum wage followed inflation, then it would be set at $4.24 an hour, which means it is already $3.01 over that amount that it should technically be (James Sherk 2013)....   [tags: Minimum wage, Employment, Unemployment, Wage]

Better Essays
1007 words (2.9 pages)

Essay about We Should NOT Increase the Minimum Wage

- I could be easily replaced by someone tomorrow for less money.” What a sober statement, one you do not hear everyday. I heard this statement from a co-worker, he has been with the grocery store twenty plus years. His remark caused me to formulate many questions on the ethics of business. Like how the decisions businessmen make affect the average worker's ability to support themselves. How do we make a living. Through working,but is that work enjoyable for us. Many of us have thought about what our purpose is in working....   [tags: Con Minimum Wage Essays]

Better Essays
1758 words (5 pages)

Minimum Wage Is The Lowest Amount Of Required Money Essay

- The minimum wage is the lowest amount of required money that is paid per hourly or daily basis for the employees that are regulated by the government. Minimum wage laws started in New Zealand and Australia with an established purpose to provide a minimum standard of living for workers. In the United States, the first federally mandated minimum wage had provided workers 25 cents per hour as part of President Franklin D. Roosevelt 's Fair Labor Standards Act of 1938. In addition, the Fair Labor Standards Act has been regulating employers for the protection of American workers (“Federal Minimum Wage”)....   [tags: Minimum wage, Employment, United States]

Better Essays
943 words (2.7 pages)

Raising Minimum Wage During The Public News Service Essay

- As shown in the Public News Service “Twenty-Nine states have set their minimum wage to $10-15.” During the summer of 2015, the New York wage committee decided to raise the minimum wage to $15. However, states that did not increase the minimum wage was thinking the consequences that will come after it. Then, throughout the media people such as, Connie Bennett at the Chicago’s McDonald’s, argued that all Americans who have low paying jobs struggle to make ends meet with bills, food, and other needs....   [tags: Minimum wage, Employment, Employee benefit]

Better Essays
705 words (2 pages)

Reducing The Minimum Wage Is Not The Answer Essay

- Increasing the Minimum Wage is Not the Answer Before the Government introduces the new increase in minimum wage, often referred to as the ‘living wage’, they must consider the significant impact of the consequences of doing so. The increase in minimum wage has fatal consequences for the very people the government is trying to help, the poor who are affected by an unfair tax system. The introduction of this new arbitrary increase in wage will hit the poorest the hardest; the loss of jobs to automation and productivity, and, by proxy of the soon-to-be the minimum wage, the brutal effects of inflation....   [tags: Minimum wage, Wage, Living wage]

Better Essays
1011 words (2.9 pages)

Minimum Wage Should Not Increase Essay examples

- Increases in minimum wage have been occurring in the United States since 1933, when the first national minimum wage was set at $0.25 per hour. With America’s growth in the 83 years since, so too has its economy. A growing economy caused inflation, which all but required an increase in the national minimum wage. In 2009, the minimum wage in the United States has been $7.25 per hour and has remained at that amount ever since, with the exception of states and cities that adjust their minimum wages to the consumer price index....   [tags: Minimum wage, Unemployment, Employment, Wage]

Better Essays
993 words (2.8 pages)

Essay on Raising Minimum Wage Increases Unemployment

- “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..."....   [tags: Minimum Wage Essays]

Better Essays
1430 words (4.1 pages)