From 2007 to 2009, the minimum wage increased from $5.15 to $7.25, where is still ... ... middle of paper ... ...ect all Americans, those making minimum wage and those with salaried jobs making above the bare minimum. Even though people are making more money, they will be spending more money on the necessities for life. Raising the minimum wage to the proposed level would be crippling to the American economy. Research shows that it would help many people greatly, but rid many more Americans of a job entirely leaving them no way to support themselves and their families. The same scenario would reoccur just as it did when the minimum wage was raised before: jobs would be lost.
Jobs and the economy are directly related, so if the economy is steadily growing, then the amount of jobs will too. Increasing minimum wage would have a major impact on job availability. In fact, a chart published by the Review of Economics and Statistics shown in the Huffington Post explains that between the years of 1991 and 2006, the rate of job growth has mimicked the increase and decrease of minimum wage. Another study done by the National Emplo... ... middle of paper ... ... work and it is Congress’s moral obligation to raise it to help the millions of people who, despite their hard work, are still in poverty. Works Cited http://www.huffingtonpost.com/2013/11/07/obama-minimum-wage_n_4235965.html http://www.salary.com/increasing-the-minimum-wage-pros-cons/ http://nelpaction.wordpress.com/2013/07/24/new-poll-overwhelming-majority-of-americans-view-minimum-wage-increase-as-important-priority-for-congress-over-next-year/ http://www.epi.org/publication/bp357-federal-minimum-wage-increase/ http://www.newyorker.com/talk/financial/2013/08/12/130812ta_talk_surowiecki http://www.huffingtonpost.com/lawrence-wittner/the-minimum-wage-should-b_b_4251211.html http://www.huffingtonpost.com/2014/01/14/minimum-wage-raise-proof_n_4597721.html http://www.huffingtonpost.com/2014/01/14/economists-minimum-wage_n_4594922.html?utm_hp_ref=business
The reason it would increase unemployment rate is because the well-known industries and companies would rather hire higher-skill workers instead of people who have no experience. Which would mean people who do not have those skills would have a harder time getting a job. Furthermore, industries and companies become highly competitive against each other and which can also cause unemployment. According to the article “The Minimum Wage: Getting to $15” business will also get hurt by raising the minimum wage. The higher the minimum wage would make it almost impractical for American companies compete with other low-paying foreign countries.
People will lose their jobs to keep businesses running. Teens and college kids will not have a place in the workforce causing them to start off with financial problems. The economy could fall apart from the cost of living increasing too much too fast. People would argue that it is better to raise the minimum wage but they are misinformed. They want change but the wrong kind.
In the eyes of the employees, the minimum wage raise is mostly a pro for them. There are three main reasons why increasing the minimum wage to $15 per hour would give benefits to both the employer and employees. Workers can make a decent living with a pay of $15 per hour. These people will then have a higher income that will enable them to pay their basic needs and living expenses. Back then in 2013, a report from the Congressional Budget Office estimated that 16.5 million low-wage workers would benefit from a $10.00 per hour wage; this includes 900,000 works coming up the poverty line ("The Effects of a Minimum-Wage Increase on Employment and Family Income").
As for the 29 states that already have higher minimum wage then the federal set minimum wage, wages will be raised and benefit over 38 million low wage workers nationwide including those in the already high wage states. Some conflicts of this policy would give low to unskilled workers a higher wage then what they deserve. As the minimum wage has not been adjusted for inflation these workers deserve these wages that could in turn positively affect their lives to the point that they might be able to spend more time with family or get an education to become more skilled. These criticisms are easily brought down because raising minimum wage helps in all the areas that are criticized. Raising the minimum wage to correlate with the price of living will help jobs and the
Faster workers went on strike in many cities to demand better pay and right to unionize. $15 an hour is part of their demand when they protested in August of 2013 across fifty cities. In this current economy, people ages 25 to 54 are the largest group to hold fast food jobs. Since these jobs pay so little, these workers qualified and used $243 billion in public benefit per year (Covert). Although this is a popular policy, economists and journalists are conflicted in their analysis of the effect of increasing the minimum wage.
If fewer jobs are going to be provided, lower class people won’t benefit it from these acts anyway. Raising the wage isn’t going to improve the lives of the lower class people if they are not going to be provided with a job. If it puts on a strain on businesses and forces them to fire employees, it would actually put more people into
No one will want to have their wages cut. Furthermore it seems very unrealistic to have someones wages cut down to benefit the economy. However, Michael Saltsman states “Let’s make teens less expensive for private employers to hire. Let’s lower their minimum wage”. lowering the minimum wage would bring as many problems as solutions.
The minimum amount of money that must be paid to an employee by an employer in hourly basis, regardless of employee’s post or qualification, which often fixed by government authorities is known as minimum wages of that country. Currently federal minimum wages in United States is $7.25 which was last set at July 2009. Every year there is a huge debate at our country about raising minimum wages. Increasing minimum wage obviously has massive effect on the country’s economy and its people. Some experts say that, raising minimum wages can improve the life style of those employees who are under the poverty line.