The Positive and Negative Effects of Raising Minimum Wage

The controversy over minimum wage has been ongoing. However, as explained in a Time article by Chris Lu on the subject, now is the prime time to raise the federal minimum wage. “Three out of four Americans support an increase; the economy is healthy; and many employers are already raising wages.” It’s reasonable to be worried about the consequences that raising the minimum wage might have in a time of crisis or unrest, but this quote mentions a healthy economy that would be able to handle the shifts in wages if things went south temporarily. Another argument made by opposers of raising the minimum is that businesses will be unable to survive. On the contrary, a good business will find it beneficial. “‘It’s a simple, but critical, concept: take care of your people and they will take care of your customers.’ For &pizza, higher wages reduce employee turnover, increase productivity and improve customer service.” Rather than hurting the economy, raising the minimum wage will help workers, business owners and the economy itself. A higher wage for all is

The federal minimum wage was officially established in 1933 as a law. However, in the article Fair Labor Standards Act of 1938: Maximum Struggle for a Minimum Wage, Jonathan Grossman stated that it actually was struck down after two years by a Supreme Court case and was not reestablished until 1938. Grossman explained how the formation of this law had to endure many so called “Supreme Court disasters”. The Supreme Court at the time voted against many cases regarding state level minimum wage laws and declared them unconstitutional. Grossman put in his article that several of these decisions were among the most unpopular ever rendered by the Supreme Court. Only three years later though, thanks

Mike Durant once said, “Making it more expensive to create new jobs is a perfect way to guarantee fewer of them.” The recent, “Raise the Wage” campaigns have sparked an interest in many low-wage workers. However, those who support this initiative are unaware of the economic problems that will arise if this is successful. Several cities have already raised their minimum wages and some, like Seattle, are raising it as high as $15 per hour. Currently, supporters of this campaign argue that the government should implement this increase federally. However, doing so will have broad and adverse financial implications. Ever since the Great Depression, the minimum wage has been in effect — to reduce poverty and solidify that employees

Raising the federal minimum wage to $15 an hour can have detrimental effects on society. Some issues that may arise are increases in unemployment and small businesses not being able to handle the financial burden, which will lead into job benefit cuts. Furthermore, a rise in minimum wage will cause inflation and businesses to raise the prices of their goods and services. People purchasing power will continue to stay the same; the struggle to close the gap between products and services will not

Minimum Wage Minimum wage has plagued a majority of teens and young adults for years and has never truly let up on them. Minimum wage is a huge part of how Americans live our lives. Many sources used in this paper were U.S News Articles and get information from a chief economist. Minimum wage should be increased because people want to have better lives than they have now which means that they are really fighting big government reps because they need to get better support from people to help increase minimum wage for their own lives. Minimum wage affects many Americans and how they can continue to make a living or how they live their lives.

One of the biggest political topics in today's society is the federal minimum wage and whether it should be raised or kept at where it is now at $7.25 an hour. Arguments could be made for both sides on whether it should be raised or left alone. The majority of minimum wage in today’s job market are unskilled positions. Minimum wage jobs were created for teenagers and colleges kids as a way to get into the workforce and to have a little extra money for themselves. It was not designed to be a wage for people to live on. Increasing the minimum wage would hurt the economy by hurting small businesses, a huge loss of jobs and it would increase the competition between teens and adults. Overall if the federal minimum wage is increased it will have many negative effects on the economy.

In the United States, the minimum wage has been a controversial issue and one of the major debates among politics over the years. Leaders in both the House of Representatives and the Senate have discussed some possible advantages to raising the minimum wage along with the possible disadvantages of an increased minimum wage. Members on one side of the debate believe raising the minimum wage could hurt America’s lowest income workers and small businesses, while people on the other side believe the current minimum wage is not a living wage – therefore needs to be raised. In this report, information on both sides of the debate has been considered. As John Stuart Mill (One of the most influential thinkers in the history of liberalism, he contributed widely to social theory, political theory and political economy) once said, “The only way in which a human being can make some approach to knowing the whole of a subject, is by hearing what can be said about it by persons of every variety of opinion, and studying all modes in which it can be looked at by every character of mind. No wise man ever acquired his wisdom in any mode but this” (Mill 12). In this report, we will look at a short description and history of the United States’ minimum wage policies. In addition, we will discuss the status of the minimum wage and present the arguments for and against raising the minimum wage. Research involving minimum wage increases have proved that the minimum wage is an ineffective antipoverty tool. Studies also show that replacing the minimum wage with an expanded Earned Income Tax Credit would be much more effective (Sabia). While, members on both sides of the debate have strong arguments, the United States government should repeal, replace, and redefine minimum wage to reduce poverty among low-income workers and help America’s small businesses succeed.

A minimum-wage increase would put billions of dollars into the U.S. economy, benefiting businesses. It may not result in a surplus, but it will benefit the economy. Workers who are affected in any way by the minimum-wage being raised even to just twelve dollars an hour would see nearly eighty billion dollars in increased earnings over the next five years. Because low-wage workers tend to spend increased earnings locally on basic necessities, this will benefit businesses that rely on consumer spending. It still won’t come close to the equilibrium price, but it will help. The minimum wage last year was twenty-four percent below the level it was just about fifty years ago despite the fact that American productivity has more than doubled over that period and low-wage workers now have much more experience and education than they did back then. Now it’s the time to address this weakness in the minimum wage by raising it and lifting the earnings of low-wage

Many citizens in the U.S. have struggled living with minimum wage and making a living for decades. Issues involving poverty, inflation, inability to pay bills, taking care of their family and hard labor are just some of the negatives that relate to minimum wage. People have gone as far as working two jobs to maintain stability and be able to take care of themselves and others as well. However, many officials refuse to raise the wage due to the decrease in jobs, the inability to decrease inflation and the raise of living in their state. What are the pros and cons of raising minimum wage? Will it be more beneficial than harm if the law is passed? The history of minimum wage provides a broad prospective as far as where it started and the reasons behind the laws of minimum wage. Many say that it can bring a toll to the budget and cause more issues with the inability of others to even receive jobs. The minimum wage should be raised due to conflicts with living and maintaining stability. As far as minimum wage concerns, there

Minimum wage has always been a controversial issue. Many politicians use the argument of minimum wage for their own political propaganda. Some may argue minimum wage should be raised, while others believe it will have detrimental effects on our economy if it is raised. Surprising to most people, minimum wage earners make up only a small percent of American workers. According to the Bureau of Labor Statistics, minimum wage workers make up about 2.8% of all workers in America. “The majority of minimum wage workers are between the ages of 16 and 24. These are high school and college students” (Sherk 2). But high school and college students are not the entire percentage of minimum wage earners. When minimum

Even though Ms.Steele considers the down fall of raising minimum wage, Mr.Knight provides clear evidence that raising minimum wage would help the America's economy.A 2011 study showed that increasing minimum wage lead to higher consumer spending.Another study showed that in the first six months of 2014 states that increased minimum wage, increased in jobs also.Last but not least, in 2014 University of Massachusetts Ameherst found that increasing minimum wage would lift 4.5 million Americans out of poverty and 3.5 million from food stamps.

“When’s our next meal?” asked a local eleven-year old boy to his mother, who works three jobs to provide for her four children. “I don’t know.” she responded back. Unfortunately, this is reality for some people in America. Despite the stereotype, the majority of people getting by on minimum wage are not teenagers in high school working part-time, but adults working full-time, often multiple jobs, to sustain their family. Raising the minimum wage would help people in need get out of poverty (and thus reduce inequality and help them afford basic essentials), spur economic growth and reduce federal spending, and keep up with inflation and productivity gains.

Millions of Americans live in poverty, unable to find high paying jobs to support themselves and their families. Common belief persists that paying a higher minimum wage would aid in lifting people out of poverty by giving those with low paying jobs a higher income, however the evidence suggests otherwise. As the 2016 race for the White House heats up, the minimum wage battle stands at the forefront of every economic discussion. The rhetoric between candidates within and across party lines intensifies by the day. While the debate over whether or not to raise the federal minimum wage from $7.25/hour to $15/hour rages on, one side continues to stand out from the other.

Nevertheless, there is still the argument that raising the minimum wage will impact the unemployment rate negatively (Roberts). One concerns are that business may not have the necessary assets to pay their workers anymore than the current $7.25 an hour wage. Another concern is that a portion of businesses rely on cheap labor so that their profit margins are greater (Smith). Raising the minimum wage to $9.00 an hour various employers are forced to lay off workers, which increases the unemployment rate and hinders the economic growth. Furthermore, with people’s pay being increased they are now able to afford the current demands, which can cause prices of the demands to increase. Teenagers are also negatively impacted due to the increase of minimum wage because the demand for jobs will rise and employers will be more willing to higher an adult versus the teenagers (“Raising the Minimum”). Additionally, when a business is required to abide by the national minimum wage, there is a sense of government control over businesses. The United States offers a free market so businesses enjoy the luxury of being able to make their own choices. Businesses have the right to choose what they would like to pay their workers, but once the new minimum wage is set they will not be able to pay below that amount. A small business with 5 to 20 employees will not experience a noticeable impact from a

There has been many conversations about what the positive impacts can come to America 's lowest income workers as a result of an increase in the minimum wage, and there has also been equally as many discussions over the negative effects the increase can have on similar people. This paper’s purpose is to combine each viewpoint and objectively analyze the arguments for and against an increase in the minimum wage. I will first discuss the