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
Issues pertaining to minimum wage might not affect all Americans, but for those that it does affect: we might ask why the controversy? There are no simple answers as this battle did not develop overnight. Minimum wage is something of much technicality, researches on minimum wage help to develop answers on whether or not it affects employment or unemployment, another issue is it helps to determine if inflation will occur. It is more than just coefficients or simple the elasticity of wages. Our group argue from different alternatives, at this time we feel as if the wages should go up over a gradual period of time. We do not feel as if: at minimum wage a family is able to maintain the basic living standards.
In this article, James Dorn and David Cooper argue whether raising the federal minimum wage will help or hurt low-wage workers. James Dorn, Vice President of Academic Affairs at the Cato Institute, argues that raising the federal minimum wage would hurt low-wage workers by reducing job opportunities and raising prices. Dorn also states that the federal minimum wage is responsible for high unemployment among teenagers and minorities and lower productivity among low-wage workers. David Cooper, an analyst from the Economic Policy Institute, argues that the federal minimum wage is not a living wage and that raising the minimum wage doesn’t have a significant effect on employment. Cooper also states that eighty percent of low-wage workers are at least twenty years old and that eighty-five percent of small businesses already pay their employees more than the minimum
Since the cost of living has gone up drastically, raising the minimum wage is the right thing to do to boost the economy, lift workers morale and productivity, and improve the self sufficiency of potentially millions of American workers. Raising the minimum wage is a vital step in decreasing poverty and giving every family the opportunity to survive and succeed. Even businesses agree raising the minimum wage would give many customers more money to spend in turn increasing sales and higher profits for the companies. Therefore, raising the minimum wage would help and not hurt the economy and it would give many Americans a better livelihood and a more secured life. In today’s society it is very expensive to live in American and even getting by daily is difficult if you are living on minimum wage. Therefore, anyone who thinks the minimum wage should not be raised should try living in
Many critics claim that that raising minimum wage increases unemployment, especially for unskilled workers, and harms small businesses, including grocery stores and restaurants. The argument declares that companies such as these rely mostly on unskilled workers for labor, and if the minimum wage increases, then their profits and, therefore, hiring would decline, creating a...
The effect of raising the minimum wage reduces employment based on the principle of supply and demand. The greater the cost of a good or service the less demand there will be for that good or service. This principle has been shown to true for labor as well. If the price of labor is free to move based on market forces, hourly pay and compensation will match desire of workers to work (supply of labor) and the desire of employers to hire them (demand for labor). Productivity of the workers combined with the availability of workers, determines what employers are willing or able to pay for labor.
Minimum Wage has been a topic of debate for many years in California between politicians and economists. The California initiative is to have minimum wage raised to at least $15 in the next few years. Just like every measure in the United States, this measure has some pro’s and cons.The Obama Administration has expressed its support for minimum wage campaign called, “Raise the Wage” by Senator Murray and Representative Scott. “Raise the Wage” is an act works with state and national advocates, along with legislators, to make a change. Throughout the years, minimum wage was increased by a few cents each year. In 2016, the minimum wage was increased to $10 an hour from what it originally was $8 in 2008. Now, citizens are looking to increase the wage to $15 an hour, which is set to be voted on in November 2016. California has a high minimum wage along with other states. But there are also a lot of housing problems in california, unemployment, and homelessness. In this paper, I intend on writing about the problem and solutions this act brings. In my opinion, raising minimum wage will do a lot more good than bad and will help the people of California. Raising the Minimum Wage helps the economy, if people make more money, they will spend more money, which benefits the encounter.
Federal minimum wage has been an ongoing controversial topic for many years. Many have argued that the federal minimum wage should be increased, while others argued that it should stay at its current price. Both proponents and opponents, based their arguments on well-studied and predicted impacts that will result because of the increase in the federal minimum wage. Proponents have argued that the federal minimum wage should be increased for the positive outcomes that will result from it. The results proponents predicted, will lift people out of poverty and create income equality, reduce government welfare spending, and increase consumer spending. On the other hand, opponents have argued that minimum wage should not be raised because of the
Economic problems are considering being controversial. Many economists stated that whenever the minimum wage is above the market equilibrium, it will cause lots of people to lose their jobs, especially for those youth generations or unskilled people who earn their lives with minimum wages and more than average 10 hours daily working time. However according to other economists, there seems to be no direct evidence to prove that the increase of minimum wage will affect any of the people and in addition of that the increase of the minimum wage even will cause an increase in employment. A...
An article written by R.A. suggested that “raising minimum wage will force employers to pay more to existing workers forcing companies to lead to sackings”. (R.A., 2014) Opponents also raise concerns that politicians who support the increase will potentially impose higher wages that the economy can’t support causing layoffs impacting our unemployment. A 2007 published study revealed contrary data of proponents showing that minimum wage will in fact hurt lower wage workers. Another 2010 study conducted presented facts that a higher wage will drive down GDP in the lower skilled industries. Many of the workers receiving minimum wage fall into the categories of younger students or people working a 2nd job to support themselves and their families questioning the compulsion to increase minimum wage as a whole. An analysis conducted by Christina Romer, supported conservatives who believe a better way to help low wage workers is through the earned income tax credit. This provides low income families with a financial payout through the Government even though this comes with a level of controversy too. The concerns raised when wages are increased is how do companies handle the impact on the business. Smaller companies will struggle to compete with big companies who can handle the increased wages and ultimately put the cost back on the consumer