“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.
As said on the book, How Can The Poor Be Helped (pg. 52) by Thomas Gale, it quote, “..at best living wage laws bring about modest benefits at a higher cost to businesses and taxpayers..”so in other words the better the wage the better it helps workers in there needs. Today minimum wage is a very economic problem to this world wide as some people would rather pay a bit extra more because of the way or how much the people may work at the employment, though some want to be equally fair others think otherwise. It actually determined to the economy as a whole so we are talking lots of money to one single person to all working stations. The wage of the federal money is actually $9.80 per hour so no more high limits so said in the webset; http://www.epi.org (Pg.3).
The power to keep America’s economy strong is in the hands of the citizens, and should not be given up for a raise in minimum wage. If our federal minimum wages are in fact increased to what Obama wants the to be, (10.10$/hr.) then we as a country will experience inflation, stagnant increases in unemployment, loss of small business, increase in illegal immigration, and with little to gain. However, if we can push through to not increase the minimum wage, or even abolish it, America will continue to grow on it’s own and improve. The minimum wage is not something to fall back on, it’s something to spring forward from, a stepping stone.
People think that raising the minimum wage can benefit people who have low-income. Well, known business and corporations do not want the minimum wage to increase, as of a result they will have to pay their employees more and corporate will lose money from paying their employees more. According to “Issue: Minimum Wage” (Marcia Clemmitt) “Business owners in some labor-intensive, low-wage industries face serious uncertainties when minimum wages rise.” Also, companies would rather pay a teenager and not an adult because adults would complain about being paid minimum wage. Adults make a living off of what they earn teenagers have a job so they can have extra money when they go out. If minimum wage increases that means that everything will be more expensive since their income is rising.
This promotes both a higher level and a wider range of goods and services produced, stimulating the economy and job growth. Migrants also bring new skills and experience to the recipient country. They help to reduce labor shortages for skilled personnel, and also attract international traders through their foreign knowledge and language skills. Skilled migrants also do not earn a cost to government in education or training, because most migrants come in their youth (20-39), means that they pay the taxes that will help sustain ageing population (mostly in MEDC’s). One main problem is that the movement of skilled personnel from LEDC (developing countries) to MEDC (developed countries), termed the “brain drain”, can have a harmful effect on the donor countries, this emigration deprives the donor country of the skilled manpower that they need.
The problem is increasing numbers of workers and their families live in poverty.Which Pathe stated “with a higher wage, and these compensatory measures in place, employment won’t decline, but it will grow more slowly because of decreased sale volume, at least for the first few years the new wage is implemented” (Pathe). A better way of raising the minimum wage without killing jobs is they could cut wages for higher-paid workers. Which would help the low wage workers at the expense of better paid workers. Also companies can raise their prices in response. when increasing the minimum wage with businesses it boost consumer demand, growing our economy and helping communities thrive.Bernstein argues that “It estimates that the increase in the wage would reduce employment by about 500,000, and 8 million low wage workers would be benefited from the change” (Bernstein).
Especially for teens and young adults, who will find it the most difficult to get hired as a low-skilled worker, would decrease the chances for his three kids growing up in the recession to even get hired. The best suggestion to prevent poverty is to look into earned income tax credit, but Kevin will need to pursue more experiences to fill his own income gap. A whole economy can’t change to improve a small percentage by deteriorating the majority of people who are above the poverty line. The economy is best when it’s self-regulating and not controlled. Right now with your wages rising, your cost of living is also rising, so in actuality you are spending more.1
Technological innovation is recognized as being a central factor in the development of modern economies (Foucher & Fitzgibbons, 1992, p.552 (22)). Suppliers need to use advanced method of production as to reduce the cost of production and to generate a reasonable profit whenever there is an increase in demand. Therefore, most of the suppliers will tend to adopt capital incentive. Furthermore, buying local-made goods also help the local and infant industry to survive. Australians should be encouraged to buy Australian-made goods because this will help the local and infant industry to compete locally and internationally.
That is in fact one of the leading factors. As there is yin and yang, the demand for a higher minimum wage is no coincidence or selfishness as others perceive as is. The poverty shown throughout the decade is deadly prominent. Minimum wage should be raised as people are not gaining enough money compared to the past, despite with more education, too many low quality jobs, “in active” unemployment are outcasted from the statistics, and finding jobs is more difficult than it was decades ago. One dollar and sixty cents do not sound a lot.
As seen in figure 4 (Whiteford, 2013), there is compelling evidence that strongly indicates the percentage of households with benefits as their main source of income is subsiding overtime, meaning the Australian youth is becoming relatively less dependent on welfare benefits. Strong economic growth has played a huge role in decreasing such reliance of welfare benefits, and with the proposed Youth Guarantee solution, youth unemployment will be further minimised.