03 May 2014. Sherk, James. "What Is Minimum Wage: Its History and Effects on the Economy." The Heritage Foundation. N.p., 26 June 2013.
State Minimum Wage Chart. N.p., n.d. Web. 24 Oct. 2013. 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.
“A 1997 National bureau of economic research study estimated that the federal minimum wage hike of 1996-1997 actually increased the number of poor families by 4.5%”(Henderson 54). A high minimum wage would also encourage people to become lazy thinking they can make all this money from an easy job instead of becoming better educated and trying hard to get a higher paying job. Therefore, raising the minimum wage would not help stop poverty or success. Not only does raising the minimum wage cause a high rate of teen unemployment because of employers not wanting to pay higher wages to inexperienced workers, it can lead to problems with teen education. “Some minimum wage advocated argue that teenagers should be in high school or... ... middle of paper ... ...e a smart move by the government because looking at the ups and downs of it; there are more negative effects.
By raising the minimum wage many teenagers and others who rely on these jobs as their only source of income could potentially be put out of a job. These people would no longer be able to afford the items they want or need. Businesses would have to raise the price of consumer goods to compensate for the higher cost of employees. Businesses could potentially lose customers that have been put out of a job and are unable to afford the company’s services. Raising the minimum wage would have a domino effect on the economy leading from one negative thing to the next.
Should the minimum wage increased to $10.10 an hour? This has increased over the years and everyone has their opinions. Those who are in favor of increasing minimum wage to $10.10 believe that more money will decrease poverty and the unemployment rate. Those who oppose the increase in the minimum wage, believe that it should not be increased and should stay the same, because it will cause businesses to close up because they are not making enough money to survive in the economy An increase in minimum wage would have to make the employees work harder to make increase sales of the business. I believe that the minimum wage should not increase to $10.10.
A raise in wages will make cost in products go up, so then employers will not be able to afford to pay employees the higher minimum wage. This being said, another issue would be that it will cause an increase in job loss. “Raising wages would boost employee paychecks, but it could cause cost-conscious companies to reduce hiring”
Minimum wages in America should not be increased because it will cause cost of living to increase, reduce employment, and cause businesses to lose money and workers. 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
23 Apr. 2014. Sherk, James. "What Is Minimum Wage: Its History and Effects on the Economy." The Heritage Foundation.
13 Jan. 2014. Sherk, James. "What is Minimum Wage: Its History and Effects on the Economy." The Heritage Foundation. 26 June 2013.