As our federal government debates the idea to raise the minimum wage, there are several interesting questions that occur. Most importantly, should we raise the minimum wage? I believe it is a bad idea to raise the minimum wage from $7.25 per hour up to $10.10 or more in a short period of time. I will explain why raising minimum wage radically would kill jobs and hurt our economy.
The main reason raising the minimum wage radically would kill the economy is the pressure it would place on small businesses. According to TheWashingtonPost.com article, Small Businesses are the backbone of the economy. They also cited that many studies from the U.S. Small Business Administration show small firms employ just over half of the private-sector workforce. Further these small firms have accounted for nearly two-thirds of nation’s net new jobs over the past decade and a half. Small business would not be able to afford the extra pay increases of the dramatic new pay scale. The small business owner would have to cut workers or cut hours to offset the pay increases. This would have a profound effect on the current economy. Also this would have a profound effect on other sectors of the economy. After reading TheWeek.com article, "There's no doubt that a higher minimum wage would create an immediate drag on earnings and create pressures for higher prices," I feel raising minimum wage radically would more likely lead to higher priced goods and products that you buy. The increased cost on the company from raising minimum wage would have to be absorbed by the consumer. This would be a direct effect of raising minimum wage approximately $3 in a short period.
There are several things which complicate the situation ...
... middle of paper ...
...y. Since that has not been the case, the government should consider an alternate plan for catching minimum wage up that isn’t so drastic for the small business owner.
Dunkelberg, William. "Why Raising The Minimum Wage Kills Jobs." Forbes. Forbes Magazine, 31 Dec. 2012. Web. 01 Feb. 2014.
Harrison, J.D. "Who Actually Creates Jobs: Start-ups, Small Businesses or Big Corporations?" Washington Post. The Washington Post, 06 May 2013. Web. 31 Jan. 2014.
Hernandez, Sergio. "How Would Raising the Minimum Wage Affect the Economy? - The Week."The Week. THE WEEK Publications, Inc, 21 Feb. 2013. Web. 31 Jan. 2014.
Saltsman, Michael. "Raising Minimum Wage Won't Lower Poverty." CNN. Cable News Network, 01 Jan. 1970. Web. 02 Feb. 2014.
Wittner, Lawrence. "The Minimum Wage Should Be Raised."The Huffington Post. TheHuffingtonPost.com, 10 Nov. 2013. Web. 02 Feb. 2014.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Before other states jump on the $15 minimum-wage bandwagon, they might want to look at what's happening in Massachusetts — one of two states with a $10-an-hour minimum wage. Massachusetts increased the minimum wage from $8 to $9 at the start of 2015 and to $10 on the first day of 2016. The state is now mired in its longest stretch of net job losses since the recession, Labor Department data show. Minimum wage is the assured lowest amount of pay per hour that an employee can receive and it’s purpose is to make certain that employers are paying their workers fairly.... [tags: Minimum Wage Essays]
650 words (1.9 pages)
- Should Congress Raise Minimum Wage. As our federal government debates the idea to raise the minimum wage, several interesting questions occur. Most important, should we raise the minimum wage. I believe it is a bad idea of raising the minimum wage from $7.25 per to approximately $10.25 in a short period of time, and I will explain why. The main reason raising the minimum wage radically would kill the economy is the pressure it would place on small businesses. Harrison, a reporter with The Washington Post, asks the question, “Are small businesses the back bone of our economy” (pars.... [tags: salary, employee, inflation]
674 words (1.9 pages)
- ... While I tend to agree with is statement I tend to feel that this number is a little high. I feel there are several people in the US that are the working poor. I tend to agree more with these statements According CNN.com, research from economists David Neumark, Mark Schweitzer and William Wascher found a higher minimum wage results in a net increase in the proportion of families who are poor or near-poverty. The economists all stated the lose from the minimum wages increase out weight the winner.... [tags: economy, salary, business]
601 words (1.7 pages)
- What would be so bad about raising minimum wage. Before other states jump on the $15 minimum-wage bandwagon, they might want to look at what's happening in Massachusetts — one of two states with a $10-an-hour minimum wage. Massachusetts increased the minimum wage from $8 to $9 at the start of 2015 and to $10 on the first day of 2016. The state is now mired in its longest stretch of net job losses since the recession in both the retail and the leisure and hospitality sectors, Labor Department data show.... [tags: Minimum Wage Essays]
1177 words (3.4 pages)
- Whether or not Congress should raise the federal minimum wage has been a large talking point for quite some time in the United States. During his 2016 State of the Union address, President Obama suggested raising the federal minimum wage to $9 per hour. In addition to this proposition from the President, the Center for American Progress also urged that we raise the minimum wage. The figure they provided comes in at $10.04 per hour. This is largely based off calculations made regarding the average production worker’s wage.... [tags: United States, Minimum wage, Unemployment]
718 words (2.1 pages)
- Congress enacted the federal minimum wage in 1938, during the Great Depression. Congress had two goals; keeping workers away from poverty and boosting consumer spending for economic recovery. Today, there is a debate, whether we should increase the minimum wage again. Increasing the minimum wage is useful for several reasons. First, the current minimum wage has failed to keep up with inflation. Second, a higher income level reduces employee turnover and increases efficiency and ultimately, raising the minimum wage does not reduce employment.... [tags: Minimum Wage Essays]
1042 words (3 pages)
- Minimum wages go all the way back to 1938, during the great depression, when the stock market crash and bank loan were failing. Families need income of some type, were they wanted to make it fair were individual could get pay the same without a college degree. I am going to start off with a little about minimum wages history and how this could help our Economic. In 1892 Federal Government adopt an 8 hour workday and other wages standard for employee. In 1903 Congress create the U.S. Department of Commerce and Labor.... [tags: Increase Minimum Wage Essays]
1373 words (3.9 pages)
- Should the minimum wage be increased to raise more workers out of poverty. In public policy, a “living wage” is a theoretical wage level that allows the earner to afford sufficient shelter, food, and other necessities of life. The living wage should be considerable enough to ensure that no more than thirty percent of it needs to be spent on housing, but this theoretical wage does not exist today. If it were true, we would see a decline in poverty and government assistance, thus creating a positive increase in quality of life (Nadeau, Glasmeier 1).... [tags: Minimum wage, Employment, Wage]
1061 words (3 pages)
- Increasing the Minimum Wage to $15 per Hour is Not Necessary In recent times, there has been an outcry from the public to raise the federal minimum wage to fifteen dollars per hour. For the last few years, unions have protested to raise the minimum wage in numerous cities across the United States. Minimum wage should not be raised fifteen dollars per hour because it will increase the unemployment rate, harm small businesses, and it could actually harm the low wage workers that this movement is trying to help.... [tags: Minimum wage, Wage, Employment, Unemployment]
1590 words (4.5 pages)
- Increases in minimum wage have been occurring in the United States since 1933, when the first national minimum wage was set at $0.25 per hour. With America’s growth in the 83 years since, so too has its economy. A growing economy caused inflation, which all but required an increase in the national minimum wage. In 2009, the minimum wage in the United States has been $7.25 per hour and has remained at that amount ever since, with the exception of states and cities that adjust their minimum wages to the consumer price index.... [tags: Minimum wage, Unemployment, Employment, Wage]
993 words (2.8 pages)