One of the biggest debates going on in America today is whether or not minimum wage should be raised or remain the same. Minimum wage is an hourly wage rate that is set by the law and currently stands at $7.25. These laws are a way to ensure people that while they work they can make enough money to support themselves until they are able to get a more skilled and high paying job. Most people who want minimum wage to be raised see it as a way to earn more money to live in better living conditions, get another step above the poverty level, and improve the economy because they would have more money to spend. If Americans focus on the general outcome and pay attention to the facts instead of just the incoming money into their pockets, they would notice that there is absolutely no reason that minimum wage should be raised. Minimum wage should not be raised because it will hurt the growth of the economy instead of help it. The cost of living varies around the country from state to state and especially the location of …show more content…
Increase in minimum wage would result in less of a job market because more Americans would be on the search for higher pay. Many who are jobless would be unable to have a chance to get hired because employers would be concerned on how many employees they would be able to pay while still being able to afford all their products (Ortiz). However, if minimum wage gets raised it would reduce the incentive for low-waged workers to want to get a higher education and work their way to a higher paying job. The lower the minimum wage the more tempted a minimum wage worker would possible be eager to attend college, learn the required skills, and apply for a higher paying job. Increasing the pay of lower paid jobs puts them in a position where they would be stuck working that job longer instead of moving on up to something more challenging and rewarding instead of putting in minimum effort
Minimum wage increase will have a negative effect. Businesses will have to cut jobs or increase prices, so they will stay in business without losing any money. Also the nation’s budget will hurt due to more money going into different programs of unemployment and bankruptcy. Though others feel that an increase of minimum wage will cause workers to have more money in their pockets, minimum wage should not be increased because it will increase prices, cut jobs, and hurt the national budget.
Although raising the minimum wage won’t eliminate poverty as poverty can never be eliminated. It could help with lowering the poverty rate. The “inactive” unemployed Americans lack motivation, because they can’t support themselves with the money earned. It simply is not enough. As the cost of living rises, minimum wage stays stagnant. This is not balanced at all. If minimum wage back in 1968 was doable, raising it now could not kill the economy. Increasing the minimum wage could be an incentive for workers to finally seek jobs again; prompting growth in the economy and lower down poverty levels in many ways. The quality of a job is just as important when creating quantity of jobs. What lacks in the U.S right now is the incentives to make Americans want to do better. Raising the minimum wage could stimulate the desire to work and get around, possibly pursuing more education to climb the ladder to get higher in the economic
One way raising minimum wage will be beneficial is that it could lift many Americans out of poverty. Raising the minimum wage in Illinois, would help the families of more than 1.1 million workers who work to meet their children’s basic needs and “reduce the adverse effects of poverty on a child’s well-being” (Fiscal Policy Center). Studies have shown that raising the minimum wage would help 1 in 5 Illinois families who are in poverty. By raising the minimum wage in Illinois, it would help workers with families spend money on food, housing, gas, and other needs without going into poverty. Along with puling Americans out of poverty, raising the minimum wage could also stimulate economic growth. Raising the minimum wage, is stimulating economic growth by worsening the income inequality and substantially reducing the employee turnover for the business. Increasing a person’s income would raise their yearly earnings by $3,640 and “Improve the economic security and reduce the economies poverty rate” (Fiscal Policy Center). Low-wage workers spend most of what they earn on their basic needs, which is quickly spent and does not leave the worker with much money left to spend on other needs. This boost in the minimum wage will stimulate the economy and help create opportunities for more people, by hiring more workers to keep up with the
Raising the minimum wage will have a positive effect on business. An abundant amount of companies believe that increasing the minimum wage would decrease gender inequality in the work area. As supported by Jason Furman, ("Minimum Wage - ProCon.org."), “ [it] is one of the important [reasons]... for inequality at the bottom.” Another reason it would aid business is that it will decrease turnover and increase productivity in the workarea. Researches have concluded that increasing the minimum wage will make employees work harder to keep their job. For example, in the fashion industry, if workers were paid more, it would result in a faster increase in production. Right now fashion is changing at a rate faster than what the companies can provide. By increasing the minimum wage, it would help companies to keep up with the fast pace
Raising the minimum will end up hurting Americans more than helping them. The people that are for raising minimum wage are people who believe that increasing minimum wage can help those people who are unskilled and need an income they can live on. Yet, raising minimum wage would do the opposite and make employers have to fire people who earn minimum wage, because they can't afford the higher wages. People need to realize that increasing the minimum wage would hurt people more than help them. In the end increasing minimum wage would result in some people being let go, for the reason, businesses can't afford paying them minimum wage anymore.
In short, policymakers should feel confident that raising the minimum wage would not hurt employment. Instead, it would provide the kind of boost in consumer demand that our economy sorely needs (Lester).
These are just a few of the many awful effects that raising the minimum wage brings. When workers hear a raise in the minimum wage, all they think about is a bigger paycheck and not what will happen to low-skilled workers, the cost of living, and the added stress to unemployment rates. New workers with less skills will have a harder time finding a job. The cost of living is going to hike due to inflation. Unemployment rates will rise due to added stress on businesses. An increase in the minimum wage is great news to a high schooler saving up to buy a new phone, but terrible news to someone trying to raise a family. If the minimum wage continues to increase, these problems will get worse instead of
Overall, an increase in the minimum wage could bring many benefits to Americans such as families being able to afford education, healthcare, food, and other necessities without having to choose between resources. The workers incomes are not sufficient to cover a family's needs, so an increase could raise a family's income, create more economic equality, and help consumer spending. The economy could improve if the wages increased because families would not be torn between where their money must be spent. An increase in the minimum wage could create a thriving economy if the wealth was distributed equally to help Americans in need.
...the future. Not only will raising the minimum wage provide more money but the workers can supply more food, be able to pay all of their bills and spend more if the wage was raised by at least five dollars. It could also benefit college students that are trying to find a way to pay for their education. Over 88 percent of workers who would benefit are at least 20 years old and in college (Cooper and Hall 2013). On the other hand, increasing the minimum wage can also cause higher rates of unemployment.
Minimum wage is a difficult number to decide on because it affects different income earning citizens in different ways. According to Principles of Microeconomics, by N. Gregory Mankiw, minimum wage is a law that establishes the lowest price for labor that and employer may pay (Mankiw 6-1b). Currently, the minimum wage in the United States is $7.25 per hour. For many years politicians and citizens have argued on what should be the minimum wage that would benefit the economy and society in general. A minimum wage was first established in 1938 to increase the standard of living of lower class workers. To discuss what is better for the country and its citizens, people have to understand what is a minimum wage and what are its effects.
Minimum wage is and will be for a long time a very controversial subject. Many think that minimum wage should be higher for people to support their families. Many also think that the price is a good starting wage, and should not be raised. People do not realize is that with raising minimum wage it would cause way more problems than keeping the minimum wage price. In my opinion minimum wage should not be raised.
It is very difficult to live in America if you are living off of minimum wage, and many Americans are living off of it today. Raising minimum wages has its benefits like gaining more money to live better, but people do not see the down side of the increases in wages. With the increase in minimum wage, it also causes the cost of living to increase. How can this help the economy or help people? 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.
Raising the minimum wage will prove to be detrimental as it will take away opportunities from high school students to gain insight and explore different career options. Additionally, it will also reduce the unemployment rate, making it harder for the working poor to meet their basic needs in order to survive. Thereby, raising the minimum wage is not a feasible option because it will only deteriorate situations for the labor
Minimum wage has been a topic that has divided our nation for a while now. Some say there should be an increase in the minimum wage while others say the should not be. In my Argument today, I will be in support for the raising of the minimum wage. If the minimum wage is to be increased, it will provide low-income family with money to spend. Furthermore, the more people spend, the better the economy so raising the minimum wage will boost our economy. And finally, raising the minimum wage will reduce the gab between the rich and the poor, which is also an issue in our nation.
...se small businesses wouldn’t be able to afford to pay as many employees. 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.