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Minimum wage debate essay
Minimum wage debate essay
Negative effects of raising the minimum wage on the economy
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President Obama opened his State of the Union address with the dilemma of service employees earning minimum wage in the United States, “Even with the tax relief we’ve put in place, a family with two kids that earns the minimum wage still lives below the poverty line…that’s wrong” (qtd in State of the Union Address 2013). The debate over whether or not the minimum wage should be raised has carried on for years between Democrats and Republicans. While many Republican politicians feel that an increase in minimum wage would be devastating to the economy in terms of job security and , in fact many fast-food and retail workers earn below the poverty level and rely on public assistance. An increase in minimum wage would not only help service employees earn a livable wage but it would also help the taxpayers in paying less for government funded programs. Republicans, especially Tea Party Republicans such as Michele Bachmann are not only against an increase in the federal minimum wage, they are in favor of eliminating the minimum wage altogether. "Literally, if we took away the minimum wage—if conceivably it was gone—we could potentially virtually wipe out unemployment completely because we would be able to offer jobs at whatever level” (Bachmann, qtd. in Minnesota Senate Hearing 2005). The point Senator Bachmann seems to make is that if business owners could set their own wages for their employees, they could hire more employees and help to lower to current unemployment rate of 7 percent. Senator Bachmann’s dream of no minimum wage could come true, if she just convinced everyone that they don’t have to get paid to work. The problem is that workers have a problem making ends meet with the current minimum wage rate of $7.25 an hour. If em... ... middle of paper ... ...ty 'the Defining Challenge of Our Time'." U.S. News & World Report. 04 Dec 2013: n. page. Print. Pennachia, Robyn. "McDonalds’ suggested budget for employees shows just how impossible it is to get by on minimum wage." Death and Taxes Magazine. 15 Jul 2013: n. page. Print. . Shierholtz, Heidi. "Low Wages and Scant Benefits Leave Many In-Home Workers Unable to Make Ends Meet." Economic Policy Institute. 26 Nov 2013: n. page. Print. Schmitt, John. "Why Does the Minimum Wage Have No Discernible Effect on Employment?" Center for Economic and Policy Research. (2013): n. page. Print. Zennie, Michael. n.d., n. pag. .
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 minimum wage was, as it should be, a living wage, for working men and women ... who are attempting to provide for their families, feed and clothe their children, heat their homes, [and] pay their mortgages. The cost-of-living inflation adjustment since 1981 would put the minimum wage at $4.79 today, instead of the $4.25 it will reach on April 1, 1991. That is a measure of how far we have failed the test of fairness to the working poor.” (Burkhauser 1)
Minimum wage is a topic that has been popping up since the 1980s. From whether we should lower it, or even raise it, but now in the 2000s minimum wage has been the center of attention more than ever. There are two sides to this topic of minimum wage; whether it creates more jobs or does not create jobs. Those who argue that raising minimum wage will create more jobs will have a rebuttal which is that it does not only cause the loss of jobs but that it would make things much worse and vice versa for those arguing raising minimum wage will cause loss of jobs. There will be two authors representing opposite views, Nicholas Johnson supporting minimum wage will not cost jobs with his article “ Evidence Shows Raising Minimum Wage Hasn’t Cost Jobs”
The Republican Party was formed after the dissolution of the Whig Party in the early 1850’s mainly due to the successful introduction of the Kansas-Nebraska Act that nullified the Missouri Compromise and caused disagreements amongst the Party’s members. Anti-slavery activists, many Whigs among them, met in Wisconsin on March 20th, 1854 and formed the Republican Party. This new party was built upon a number of principles that were based on freedom and equal opportunity and it has consistently conveyed a commitment to the inalienable rights of life, liberty, and the pursuit of happiness. These founding principles have led present-day Republicans to continue believing that each person is responsible for his or her own place in society . Therefore, the Republicans are against minimum wage and support programs and legislation that enable Americans to reach their fullest potential by going out and seeking the best possible opportunities available to them and if there are none, they must create them. Recently, the Party has been pressured by Democrats to abandon its founding beliefs by supporting a raise in minimum wage. This pressure has not yet been enough to sway many Republicans to permanently support a raise in minimum wage. By supporting a raise in minimum wage, the Republican Party would be abandoning its founding principles by supporting a system that does not enable people to put out their utmost effort when seeking employment and thus the Party must not support a raise in minimum wage as it is detrimental to society and the party could consequently lose support by abandoning its long-standing principles.
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
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.
The shockingly low minimum wage in America is borderline unethical. Since the minimum wage was established in 1938, there’s been controversy about how much it should be. It was originally set at an amount that would allow workers to maintain a minimal standard of living (30 Days). Since then, the minimum wage has been raised 22 times, but this hasn’t been enough to support the same goal. Not only has inflation made minimum wage worth significantly less, but the cost of living has gone up. Two thirds of American citizens support raising minimum wage again (Mantel, 76), but some still oppose it, saying it would hurt jobs and the economy. Although raising the federal minimum wage would most likely cause some jobs to be lost, it should be raised because of the positive effect it would have on poverty rates, the economy, and the individuals living on it.
They may argue that jobs and benefits could be cut and could reduce desire for career advancement, but they are wrong. The Congressional Budget Office projected that a minimum wage increase from $7.25 to $10.10 would result in a loss of 500,000 jobs. In a survey of 1,213 businesses and human resources professionals, 38% of employers who currently pay minimum wage said they would lay off some employees if the minimum wage was raised to $10.10. 54% said they would decrease hiring levels. People get laid off from jobs every day due to money budgets, lack of professionalism, or illegal actions. Companies do what’s best for their investment regardless, if minimum wage goes up or not. Whether they were to lay off people there will be extra workload divided among the employees left, which is more than they are getting paid for. That could lead to the company having to pay their employees
Linda Gorman. "Minimum Wages." The Concise Encyclopedia of Economics. 2008. Library of Economics and Liberty. Retrieved April 24, 2014 from the World Wide Web: http://www.econlib.org/library/Enc/MinimumWages.html
Americans are not wrong in thinking that increasing the minimum wage will increase low-wage working families’ incomes, and some of these families will rise above the national poverty threshold. While increasing the minimum wage might benefit some American families, it will hurt others. Increasing the minimum wage will eliminate many low wage jobs, which would then result in many people jobless and therefore, a substantial drop in those individuals’ household incomes (“The Effects of a Minimum-Wage Increase on Employment and Family Income”). . “Raising the country’s minimum wage could boost the incomes of millions of Americans, but it could also potentially cut total employment by hundreds of thousands of workers” (Kurtzleben). An increase in the minimum wage lowers employment, which makes it harder for these workers with minimal skills to find a job. Congress then explains that low income families will actually not bring in any benefits from an increase of the minimum wage (“Would an Increase in the Federal Minimum Wage Help or Hinder Small Business” 2-3). While increasing the minimum wage might raise the standards of living for some low wage workers and families, if the increase in minimum wage reduces employment rates, there is no certain answer on what
Mark Adams argues that raising minimum wage would hurt the poor rather than helping them. He points out that raising minimum wage will make it hard for them to find a job. He thinks that best way to cut help poor is to cut back on costly regulation that burden job creators, rather than increasing the minimum wage. I will use this article to point out what the critics have to say and use it make counter arguments. Mark Adams is a research fellow at the Mercatus center at George Mason University, making it a very credible source.
· ------, and T. A. Finegan (1989), "The Minimum Wage and the Poor: The End of a Relationship," Journal of Policy Analysis and Management 8 (Winter): 53-71.
To begin, the ideas of small businesses and unemployment rates walk hand especially for the owners themselves when deciding to hire or fire their workers. Many economists believe that increasing the minimum wage will be able to reduce the percentage of unemployment rates slightly, which here in America is a big deal. One researcher, Paul Krugman a Keynesian economist states, "There just isnt any evidence that raising the minimum wage....would reduce employment. And this is actually the solid result, because there have been a lot of studies." Krugman displa...
The minimum wage seems like a just and compassionate policy: its purpose is to assist individuals in the greatest need by keeping them out of poverty. Although few people would argue that a household supported by one or more minimum wage incomes can enjoy the greatest comforts that society has to offer, many believe that it is still a beneficial policy because it seeks to meet at least basic needs. However, Roger Miller and other economists argue that however effective the minimum wage law was when it was enacted, it is no longer serving its intended purpose. Miller (2017, 98-99) claims that poor families are often poor not because the minimum wage is not high enough, but rather because individuals in those households
Bernstein, Jared. “Would Raising the Minimum Wage Harm the Economy?” The CQ Researcher 16 Dec. 2005:1069.