A Minimum Wage Increase Will Stimulate the Economy

analytical Essay
1329 words
1329 words

President Franklin Roosevelt endorsed the federal minimum wage law in 1938 while the Great Depression was at its utmost insolvent position. Because at this point in time the economy was at its lowest, the sole purpose for its enactment was to keep the majority of Americans out of poverty and increase consumer demand. Following the 1960’s, the minimum wage has had a very gradual increase to the point where it is now at a standby. At this moment with a recession occurring, minimum wages have not brought any benefits to those working for such a limited pay. In fact, it has affected an amount of factors rather than actually keeping the overall population out of impoverishment. Although opponents claim a rise in minimum wages will affect employment, an increase is the key to stimulate the economy and will further reduce those stepping in the poverty line, known as the “working poor.” All in all, raising earnings will be advantageous as a whole.
Raising the pay for minimum wage workers will be the proper way to create effective results, yet there exists those who oppose an increase. Neal Asbury, an American entrepreneur, writes “Raising the Minimum Wage Brings Minimum Benefits” to express how a hike in wages will increase unemployment levels. The author introduces a survey done in 1992 regarding economists’ beliefs towards an increase in minimum wage, where 72 percent claim it would hurt unemployment levels (Asbury). According to this claim, more than half of economists argue that if a rise in minimum wage is to occur, unemployment will soar among the country. Businesses will be prone to lay off employees or hire fewer workers because of higher costs and will lead low-skilled workers to be jobless. An increase in pay will lea...

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...sures of relying on public assistance; therefore, allowing them to purchase any goods they could not before. The success of raising wages in studies sets the profound reasoning why it is ideal for the country.

Works Cited

Asbury, Neal. “Raising the Minimum Wage Brings Minimum Benefits.” Money News. Newsmax Media, Inc., 14 Mar. 2013. Web. 19 Nov. 2013.
Martin, Emily, and Arjun Sethi. “Equal Pay Day: Raising the Minimum Wage Will Help Women---And the Economy.” Christian Science Monitor. The Christian Science Monitor, 9 Apr. 2013. n.pag. Academic Search Complete. Web. 21 Oct. 2013.
Nader, Ralph. “America’s Miserly Minimum Wage Needs an Upgrade.” The Wall Street Journal. Dow Jones & Company, 15 Apr. 2013. Web. 21 Oct. 2013.
Wicks-Lim, Jeannette. “The Working Poor.” New Labor Forum (Murphy Institute). 21.3 (2012): 17-25. Academic Search Complete. Web. 18 Oct. 2013.

In this essay, the author

  • Explains that president roosevelt endorsed the federal minimum wage law in 1938 while the great depression was at its utmost insolvent position.
  • Analyzes how neal asbury, an american entrepreneur, writes "raising the minimum wage brings minimum benefits" to express how a hike in wages will increase unemployment levels.
  • Argues that increasing the minimum wage will lead to better off results concerning market activity. nader presents two studies to prove the effectiveness of a rise in pay.
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