Minimum Wage Cons

Increasing the minimum wage may help hard working families make ends meat. The first federal minimum wage in 1938. Started at $.25 an hour. In 1968 it reached its peak value. Since then the value has fallen thirty percent, so that today’s minimum wage of $5.15 is equal to $4.18 which is equivalent to the value in 1995 (women, 4). Some states have decided to raise the minimum wage above $5.15 an hour even though the senate ultimately sets the minimum wage. There was a push to raise the minimum wage two dollars in the next two years. The average yearly income for a person who works minimum wage is around $19,000. In the United States there are over 1.6 million minimum wage workers. Fifty-three percent of minimum wage workers are high school, or college students, seventeen percent are the retired, and thirty percent being unskilled workers. Because the minimum wage is not enough for most people to live on, in 1994 local union leaders and activists have helped to pass more than 100 living wage ordinances. A living wage is designed to help low wage workers and their families to live above the poverty level

Raising the minimum wage will not help the economy The issue of whether or not to raise the minimum wage has been a subject that has been in the forefront both politically and socially as of late. A minimum wage is the lowest hourly rate of pay that employers must pay their workers and is mandated by the federal government. Raising the minimum wage would actually hurt the economy because doing so would do little to lower the poverty rate, would increase unemployment for less-skilled workers and result in higher prices for goods and services.

If I were President of the United States, I would do what is best for the working American people and not raise the minimum wage. I believe that when raising the minimum wage the cons outweigh the pros. There are several cons such as job loss, having little or no effect on reducing poverty, and hurting businesses. Raising the minimum wage has provided the message that it will help workers, but it will actually hurt them instead. I think that raising the minimum wage will end up causing more unnecessary economic problems.

Economics 1101 Essay Cost-benefit analysis Introduction When the question is asked "Who benefits and who loses when it comes to the minimum wage" there are really 2 ways to look at it, the short term effects and the long term effects . While the minimum wage laws usually aim to prevent poverty among lower income earners sometimes it create it rather than help prevent it. Minimum wage increase Short term + Increase in Earnings -Decrease in Employment + Increase of local spending and tax revenue - Decrease in hours worked + Decrease in worker turnover - Increased Prices

Raising the Minimum Wage helps the economy, if people make more money, they will spend more money, which benefits the encounter. Corporations need to take into account the idea that when wage is deducted from an employee, that employee is less willing to work and that can really affect the business. But if the employee is being paid a decent amount that is realistic for them, they are more willing to work for your business and will be a happy worker, which will be beneficial to your business. No one wants their business to have the image of abusing their employee’s. It can harm their business by the public viewing them as a company that doesn 't appreciate their workers. If the employee is being paid a decent amount, it could also lead to the employee willingly staying at your business and being committed to their work ethic.

Although raising the minimum wage has many negative effects that cause backlash on a small scale. On the other hand, raising minimum wages also has many positive effects not only for the United States economy as whole, but for the status of those in poverty as well. Minimum wage was not put into effect for those who make more than adequate money. The minimum wage laws were put into effect to guarantee a minimum hourly wage for those unskilled workers from being exploited by their employers and for the unskilled workers to be able to maintain a minimum standard of living.

For many, this much of an increase in pay, could result in job loss because of the lack of money the business is bringing in, comparing to the amount needed to pay the employees. Meaning that, raising minimum wage does not all come with positive effects. Some businesses would more than likely shut down because they are unable to continue paying their employees what is now required, this means costing people there jobs. Increasing minimum wage may have a negative effect because by raising the base pay for a lot of people, would help them tremendously. But, some may not be as lucky and it could cost them their

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"). So if employees receive a pay S15.00 an hour, the fewer people ar...

"If we took away the minimum wage, we could wipe out unemployment completely because we would be able to offer jobs at every possible skill level."

recommendation. A minimum wage is essentially a price floor for labor. If this floor is set above the current market price – as would be the case with an increase in minimum wage - the demand for workers will be reduced while the supply of workers will increase. As illustrated below the result would lead to increased unemployment.