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Effects of increasing the minimum wage
What are the advantages and disadvantages of minimum wage rising
Positive effects of increasing the minimum wage
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The idea of having a federal minimum wage is a good one. The idea is to protect low and unskilled workers from discrimination and allow all workers to earn a living wage. The recent debate on the floor, though, is whether or not to raise the minimum wage from the current $7.25 per hour up to $10.10 per hour. President Barack Obama made this proposal during his annual State of the Union Address on January 28, and following this there were many hot debates about it. The debates focused not only on the advantages and the disadvantages of increasing the minimum wage, but also the alternatives to increasing it. There are many advantages to increasing the minimum wage, most of which are simple enough to understand, and make someone think that there is no reason not to increase the minimum wage. The first, and most important, benefit of increasing the minimum wage is that most workers would be able to work to earn a living wage, a wage that is high enough that workers are able to maintain a normal standard of living. This is very important, because more people being able to maintain a normal standard of living means that there are less people living at or below the poverty line. Going off that point, increasing the minimum wage, thus raising the number of workers able to earn a living wage, will reduce the need for social programs, such as unemployment, welfare, SNAP, etc., because there will be fewer people living at or below the poverty line that qualify for these programs. Next in line is that a higher minimum wage will increase workers incentive to work, and also increase the incentive of the population not in the labor force to join the labor force and seek jobs. Adding more people to the labor force means that firms have a bigger ... ... middle of paper ... ...or a Higher Minimum Wage." The New York Times 8 Feb. 2014: SR10. Print. Henderson, David R.. "Most of the Benefits of a Minimum Wage Increase Would Not Go to Poor Households." Most of the Benefits of a Minimum Wage Increase Would Not Go to Poor Households. National Center for Policy Analysis, 13 Jan. 2014. Web. 22 Feb. 2014. . "Minimum Wage Laws in the States - Wage and Hour Division (WHD) - U.S. Department of Labor." Minimum Wage Laws in the States - Wage and Hour Division (WHD) - U.S. Department of Labor. Department of Labor, 1 Jan. 2014. Web. 22 Apr. 2014. . Barro, Josh. "A Smarter Alternative to Raising the Minimum Wage." BloombergView.com. Bloomberg LP, 13 Feb. 2014. Web. 22 Apr. 2014. .
Poverty continues to grow in America. The average minimum wage in the United States is $7.35 an hour- far too low in today’s society. Key expenses, for example, gas and housing prices, have gone up significantly since the minimum wage was last changed in 2007 (Wagner 52). The laws creating the minimum wage were intended to improve the standard of living and decrease poverty. Raising minimum wage is a vital step in decreasing poverty and giving every family the opportunity to survive and succeed. Millions of hard-working Americans are below the poverty line and need an increase in pay. Minimum wage must be raised because it will diminish poverty and assist the working class to support their families.
The United States minimum wage is not indexed to inflation. Due to this fact, the purchasing power of minimum wage falls as the price of consumer goods increases. The current hourly minimum wage is set at $7.25, however many states do pay above this rate. One example of this is in Michigan, the current hourly minimum wage is $7.40. The last time a change occurred to raise minimum wage was in 2009. President Obama has put out a proposal that is designed to raise the federally required hourly minimum wage to $10.10 in 2015. The public opinion of this proposal is all over the board ranging from a positive outlook to a negative one. Some of the negative remarks are that it would dampen the economy and shrink the hiring done by small businesses. “The Household Survival Budget for the average New Jersey family of four is $58,500 and for a single adult is $25,368 in 2010. These numbers highl...
Well, raising the minimum wage has both the pros and cons. Still, the fact that increasing the minimum wage nationwide would increase millions of workers’ earnings is deniable. I suppose that’s why some people advocate raising the minimum wage will grow the economy for everyone. In 2014, the president of the United States, Obama, called on the current Congress to raise the national minimum wage, which proves that Obama actually supports raising the minimum wage. ‘February 2014 Congressional Budget Office Report The Effects of a Minimum-Wage Increase on Employment and Family Income is the latest attempt to do so, in this response to Members of Congress with respect to an increase in the federal minimum wage from $7.25 to $10.10 per hour.’
Many people against raising the minimum wage create arguments such as, “it will cause inflation”, or, “ it will result in job loss.” Not only are these arguments terribly untrue, they also cause a sense of panic towards the majority working-class. Since 1938, the federal minimum wage has been increased 22 times. For more than 75 years, real GDP per capita has consistently increased, even when the wage has been
There have been many arguments going on whether minimum wage should be increased. This action has its pros and cons. It can benefit many families as living cost has gone up, price for education is rising, and college students are in huge debts. Minimum wage has been around for ages. Minimum wage employment was a temporary condition for people to earn little payment until they moved on to a better paying job. These jobs helped build résumés, experiences, and skills for a better career. As years went on that idea began to demolish into a job that many families can get to survive and pay for their expenses. It has become the easy way for people to get easy pay.
Gitterman, Daniel P. “Remaking A Bargain: The Political Logic Of The Minimum Wage In The United States.” Poverty And Public Policy 5.1 (2013): 3-36. EconLit. Web. 24 Oct. 2013.
There are indeed risks of raising the minimum wage, but the rewards outweigh those risks, so the minimum wage should be raised. Some people who are against this may say ...“But other economists say raising the minimum wage actually hurts the very people it's designed to help: One of the basic laws of economics is that if you raise the price of something, there will be less demand for it. In this case, if you raise the price of workers, the demand for workers will decline. That could mean companies cutting the hours of employees, laying them off, or hiring fewer workers in the future.”... Yes, it could hurt the people it is designed to help, but different states have done this and found the opposite to be true. With America’s still fragile economy we need a boost, a helping hand; And this could be it. So next time you go down to vote on a mayor or maybe even the next president, remember that raising the minimum wage is a good thing, and you should be supporting
The minimum wage must be raised because the cost of living has gone up considerably. Education is essential if one wishes to work, and the cost of education has increased drastically in the past twenty years. Companies should be requied to pay workers what they deserve, and that is more than minimum wage is now. With our new technology and the technology in the future work is harder and more complicated. A minimum wage increase would raise the wages of many workers and increase benefits to those disadvantaged workers.
One way raising minimum wage will be beneficial is that it could lift many Americans out of poverty. Raising the minimum wage in Illinois, would help the families of more than 1.1 million workers who work to meet their children’s basic needs and “reduce the adverse effects of poverty on a child’s well-being” (Fiscal Policy Center). Studies have shown that raising the minimum wage would help 1 in 5 Illinois families who are in poverty. By raising the minimum wage in Illinois, it would help workers with families spend money on food, housing, gas, and other needs without going into poverty. Along with puling Americans out of poverty, raising the minimum wage could also stimulate economic growth. Raising the minimum wage, is stimulating economic growth by worsening the income inequality and substantially reducing the employee turnover for the business. Increasing a person’s income would raise their yearly earnings by $3,640 and “Improve the economic security and reduce the economies poverty rate” (Fiscal Policy Center). Low-wage workers spend most of what they earn on their basic needs, which is quickly spent and does not leave the worker with much money left to spend on other needs. This boost in the minimum wage will stimulate the economy and help create opportunities for more people, by hiring more workers to keep up with the
"Bill Gates: Raising Minimum Wage Can Destroy Jobs." The Foundry Conservative Policy News from The Heritage Foundation. N.p., n.d. Web. 14 Mar. 2014.
On the other side of the argument Americans believe that with the increase of minimum wages it would help Americans out a lot more. One possible way that the increase in minimum wage may help an individual out is in the article Minimum wage Pros and Cons, “The Economic Policy Institute stated that a minimum wage increase from the current rate of $7.25 an hour to $10.10 would inject $22.1 billion net into the economy and create about 85,000 new jobs over a three-year phase-in period. Though this may be true, one problem
Raising the minimum wage is a temporary fix to a long term problem. The direct problem at stake is not the minimum wage itself, it’s really the incom...
About “75.3 million people ages sixteen and over worked for hourly wages in 2008, according to the U.S. Department of Labor’s Bureau of Labor Statistics” (“Minimum Wage”). Meaning almost a quarter of the workforce in this nation are working a minimum wage job. Numerous people believe that these workers are not able to make ends meet, and increasing the minimum wage will help these individuals substantially. Even though people believe that increasing the minimum wage will benefit the society, they tend to overlook the drawbacks of increasing the minimum wage, and how it will prove to be detrimental to the society. People believe that increasing the minimum wage will reduce poverty and improve the living standards of the individuals.
Bernstein, Jared. “Would Raising the Minimum Wage Harm the Economy?” The CQ Researcher 16 Dec. 2005:1069.
In America, there is a high percentage of homelessness and people who are in poverty. So if the minimum wage is rising it will help to reduce poverty for families living in homeless shelter. It will help assist students financially through college by managing their cost of tuition, housing, food, and fees. In contract, in the article “Reducing the Minimum Wage.” James, Skerk. “Skerk James’s story; “who is the follow in labor policy at the Heritage Foundation, argues that raising the minimum wage will not stop poverty. Instead, it will push employees to cut hours and give less job position to low-income workers. If a employees is making a lot of money there is no way for them to cut off hours. That along will motivate workers to put more time and effort in their work so they can be eligible for benefits at their work place. So if rich and poor making enough incomes their will be no differences of categorizing rich from