For the past three decades minimum wage has been seen to rise several times. Only helping some but more than anything harming most. So who are the ones feeling the effects? Certainly not the wealthy, it never is them, mainly it would be the working poor, unskilled and teenagers. Raising minimum wage would cripple the public even more than what it would actually help.
However, there are those who see it completely the opposite way. Stating that by raising the minimum wage the economy would be better. More people would be able to support themselves; therefore lowering the percentage of poor people and raising the middle-class numbers. It is also argued that this change would not increase the number of unemployment, instead it could potentially raise employment by creating more jobs. Holly Sklar states in her research article, “Research by Fiscal Policy Institute and others showed that states that raised their minimum wages above the federal level experienced better employment and small business trends than states that did not.”
When it comes to the idea of raising the federal living wage, for some individuals in the general public it always seems as a good idea. But what they fail to realized is the cons behind that idea. For instance, job-loss would be one of the biggest negative effects if the federal government decided to pass a law to increase the living wage. According to Joseph J. Sabia in a 2007 collaborative research article Minimum Wages and Poverty. “With an average employment elasticity of -0.6 for minimum wage workers aged 16-29 without a high school diploma and an elasticity of -0.2 for minimum wage workers, we estimate that nearly 1.3 million jobs will be lost if the federal minimum...
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...e would notice increases in the tax and regulatory burden much more.” In my opinion it is the perfect way the government can take more tax money from the working poor.
In conclusion we have seen that the idea of raising the living wage has good motivation but does not really do what it is meat to do which is help. Instead of raising wages, why not lower educational tuition. It is said that education opens the doors to better opportunities. Allowing people to be able to provide for themselves and stop relying on the government’s welfare organizations. People would have more money to spend, economy would improve, poverty percentage would descend, and it would allow those originations to use the money for something else like charities as an example. Or on the other hand the government could create more stable jobs that would most likely give the same positive outcomes.
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