Should Minimum Wage Be Mandatory Wage? Essay example

Should Minimum Wage Be Mandatory Wage? Essay example

Length: 1013 words (2.9 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

While there has been a big push by the public to implement a $15 minimum wage, with this minimum wage comes consequences the largest of them being unemployment–especially for young less experienced laborers (Sowell, 2015). According to a 2016 article written by the Learn Liberty team:
[Don Boudreaux] points out that minimum wage hikes may sound good in on their face, but in reality they result in job loss because they increase the cost of labor, making low-skilled employees more expensive for employers to hire…Wage hikes disproportionately hurt marginalized groups with the least experience. Inner-city students, immigrants, and other workers on the lower rungs of the economic ladder are deemed most expendable when employers are forced to reduce job opportunities. (para. 2-3)
Thomas Sowell (2015) echoes this when saying,
Unfortunately, the real minimum wage is always zero, regardless of the laws, and that is the wage that many workers receive in the wake of the creation or escalation of a government-mandated minimum wage, because they either lose their jobs or fail to find jobs when they enter the labor force. (pp. 220-221)
While some argue these points, even saying the minimum wage helps to encourage job growth (Hanauer, 2016). These sentiments further show how economics is not simply a matter of money. While the general public has a mindset of “more money means a higher standard of living.” This is untrue, however, because it assumes those people will keep their jobs. Sowell (2015) cites that in countries where there is no minimum wage law, the unemployment rates tend to be relatively low. Minimum wage is not only a matter of money, but also a matter of cost, and this high cost may and does lead to more unemployment, an example o...


... middle of paper ...


...f the economic consequences these fixes will often make what they were trying to fix worse than it was before. The minimum wage was shown by several studies to increase unemployment rates (Sowell, 2015). Government subsidization put people in such a position that some felt they did not feel the need to find employment as quickly. And finally, a shorter work week proved also to be another source of higher unemployment rates as well, as the employers were unable to continue to pay more employees at the same rate as they had paid fewer employees. Likewise, job security makes it so difficult to fire employees as to make it difficult to hire them in the first place. Gaining a better economic understanding of the consequences of such popular fixes as the above can greatly help in trying to limit them in the future, for future generations as well as the present generation.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Minimum Wage Should Be Raised Essay

- 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....   [tags: Employment, Minimum wage, Wage, Working class]

Better Essays
1171 words (3.3 pages)

Minimum Wage Should Be Increased Federally Essay

- For various people in the United States, life is no more than a steady work cycle. Members of working class usually have a High School diploma and may work in a low skilled occupation or manual labor. Most of the enjoying age of the people is spent making 8.25 to 10 dollars an hour, as they don’t want their new once to live a life they are struggling through. Coming to the point, this essay will argue that minimum wage should be increased federally to 15 dollars per hour by 2017 in the United States....   [tags: Minimum wage, Wage, Tax, Employment]

Better Essays
1196 words (3.4 pages)

Minimum Wage : The Issue Of Salary Essay

- The issue of salary is of great concern to everybody under employment. It determines a lot to the type and kind of job one would choose to perform. The variance in salary is one among major factor in the financial differences across people. It sets the social basis of social classes and peoples personal choices and preferences as it plays a vital role when making financial decisions. The kind of salary a particular job offers determines the kind of degree a student would prefer to purse. When you talk of minimum wage raises a lot of concerns from various parties with different perspectives and ideas....   [tags: Wage, Minimum wage, Employment, Poverty]

Better Essays
1078 words (3.1 pages)

Essay on Article Rebuttal: Minimum Wage

- Article Rebuttal: Minimum Wage Over the years there has been much debate about raising the federal minimum wage. Some states have taken it upon themselves to set higher minimum wages than the federal minimum wage, because of the lack of action by congress. The supporters of the raising of the federal minimum wage have been more vocal lately. This is especially true since studies have shown, that the gap has grown between the wealthier population, and the middle class. Recently President Obama, because of the lack of effort and action by congress, has used executive action to implement the raising of the federal minimum wage to $10.10 an hour for new federal contracts, effective 2015....   [tags: Federal Minimum Wage, Finance]

Better Essays
1190 words (3.4 pages)

Essay about Debate Over Raising The Minimum Wage

- In the last years, there has been a controversy over raising the minimum wage. This can be seen in many of the fast food industries, with protest to increase the minimum wage to an average pay of fifteen dollars an hour. Increasing the minimum claims to solve countless economic and social dilemmas. For young Americans that are unemployed, the increase of the minimum wage would be a catastrophic. This type of first step would destroy the future for the young generate, as they would be trapped as a low-skilled American in poverty....   [tags: Employment, Minimum wage, Wage, United States]

Better Essays
1296 words (3.7 pages)

Should Congress Raise the Minimum Wage Essay

- 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]

Better Essays
674 words (1.9 pages)

Essay on Reducing The Wage Gap Between Men And Women

- Women had suffered unfair pay in the workforce for years. Statistics have shown that men still earn more than women who have the same degree, education, and qualifications. Women are the main focus for the uneven and unequal share of low-wages in the United States. However, women have additional responsibilities from men that keep them out of the workforce longer which in return leads to discrimination. This research will introduce problems, solutions, and prove that there are alternatives for women....   [tags: Employment, Minimum wage, Employment compensation]

Better Essays
1506 words (4.3 pages)

Should Minimum Wage Be Significantly Increased in the United States? Essay

- ... Also, it keeps people on well-fare, and encourages people to drop out of high school. The findings in many articles all say the same thing that I will ultimately be saying in this paper. Raising the minimum wage will not help people, when wages are increased you will see that employment across the nation will decrease exponentially. People that are not well educated like high school dropouts, some criminals that are in the working field and many other teenage workers will all be let go from the current job....   [tags: socioeconomic analysis]

Better Essays
1454 words (4.2 pages)

The Minimum Wage War Essay

- On Saturday, June 25, 1938, President Franklin D. Roosevelt signed 121 bills. Among these bills was a landmark law in the United States’ social and economic development—Fair Labor Standards Act of 1938 (FLSA) or otherwise known as the Wages and Hours Bill. This new law created a maximum forty-four hour workweek, guaranteed “time-and-a-half” for overtime hours in certain jobs, banned oppressive child labor, and established the nation’s first minimum wage. By definition, a minimum wage is the lowest wage permitted by law or by a special agreement (such as one with a labor union)....   [tags: Fair Labor Standards Act of 1938]

Better Essays
1158 words (3.3 pages)

The Effects of a Change in the Minimum Wage Essay

- The Effects of a Change in the Minimum Wage In 1938, the Fair Labor Standards Act was passed and ever since, the United States has required that all firms that do at least $500,000 worth of business per year pay their workers a minimum wage (“Handy” n.pag.). Because it affects so many workers in so many different aspects of the economy, the minimum wage plays a big part in the cost of labor and how firms deal with those costs. A change in the minimum wage, which would seemingly affect only workers, can actually be felt sometimes all the way down to the consumer, who might end up paying for it in the end—unless the firm finds another way to pay for the mandatory raise for all its workers...   [tags: Economics Workforce Research Papers]

Better Essays
1446 words (4.1 pages)