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Minimum Wage Argument Essay

1185 Words5 Pages

A question that has been debated vastly between opposing parties, groups, and even individuals is, should the federal minimum wage be increased? Ever since July, 2009, the federal minimum wage for the United states has been $7.25 per hour, this being the number that has caused much controversy. By definition minimum wage is the smallest amount of money that must be paid to an employee by an employer, regardless of previous qualification. This value has caused so much controversy because many believe it is not enough money to survive on while others argue it is plenty. Although many would argue that there is no benefit to raise minimum wage, it is actually very constructive and would help the United States prosper. The increase to minimum …show more content…

One of the main reasons is that if the the minimum wage is increased, employers will have no reason to keep employees. As stated, “ Suppose we increased the minimum wage to $300 per hour. Do you really think that most of us would keep our jobs? Of course not-there would be no incentive for employers to retain us” (Source B). A key component in this argument is that if minimum wage was increased, employers would automate many jobs that workers have. This seems unrealistic however because the technology required for some jobs to be made automated has not been invented and/or is very costly. Also people are not attempting to get the minimum wage up to $300 per hour, this number is very exaggerated and inaccurate. Workers are attempting to raise the minimum wage a few dollars in order to support families as well as themselves, and are benefiting the economy while doing it. Another argument by the opposition is that “the only way to increase the income of the poor is to make them more productive” (Source B). This statement is accurate in the sense that poor people have to be productive to succeed financially. However, when the amount of money economically disadvantaged people receive at their jobs is not enough to live on, there is a large problem. Even if a poor person works hard at their job and works full-time, they still will not receive enough money to be well off. This then perpetuates the cycle of them being poor because working hard and being lazy have the same

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First, one main reason that the minimum wage should be raised is because the economy will prosper. “Economic Policy Institute stated that a minimum wage increase from the current rate of $7.25 an hour to $10.10 would inject $22.1 billion net into the economy and create about 85,000 new jobs over a three-year phase-in period” (ProCon). This quote shows that the economy will flourish from the increase of the minimum wage and that unemployment will decrease. Another quote that shows how raising the minimum wage will affect employment is “To the extent that through these contour effects it affords as much as 70 percent of the workforce greater purchasing power, it effectively increases aggregate demand for goods and services, which should ultimately lead to the creation of more jobs” (Challenger 19). Bryan Covert supports raising the minimum wage by

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1913 Words | 8 Pages

The current federal minimum wage is set at seven dollars and twenty-five cents. Many workers across the country are complaining that the purchasing power of the minimum wage is currently low, meaning one cannot buy as much while living off of the minimum wage. Moreover, citizens are work full time, while earning the minimum wage, are living, on average, several thousand dollars below the poverty line. However, an increase in the federal minimum wage may do more harm than good. It is likely that an immediate increase in the federal minimum wage will lead to an increase in high school drop outs, a large cut in the workforce, mass amounts of inflation, as well as a large amount of jobs being outsourced.

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623 Words | 3 Pages

Today’s minimum of $7.25 an hour is worth 25 percent less than the minimum in the late 1960s. From research, a full-time, minimum-wage worker earns about $15,000 per year, which is below the federal poverty line for a worker with just one child. We need to raise the minimum wage to the point where the lowest-paid worker can afford their basic needs, such as food and other necessities. An increase to $10.00 an hour as proposed by President Barack Obama would actually reinstate the wage factor to the same value it had back in the 1960s. In doing so, it would lift earnings for nearly 28 million workers nationwide roughly 1 in 5 U.S. workers.

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733 Words | 3 Pages

The federal minimum wage should be increased because raising it would increase the economic activity and spur job growth, decrease poverty, and also improvements in productivity and economic growth have outpaced increases in the minimum wage. Increases in job growth and economic activity will happen when the minimum wage is elevated. If the minimum wage was increased it will “inject 22.1 billion net into the economy and create about 85,000 new jobs over a three year period”. (“Raising the Federal minimum Wage to $10.10 Would Lift Wages for Millions and Provide a Modest Economic Boost") Thousands of new jobs will be created and it will put billions of dollars into the economy.

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993 Words | 4 Pages

The federal minimum wage should be increased because it would decrease poverty rates, stimulate the economy, and inflation has surpassed current wages. A raise in the federal minimum wage would help pull millions of Americans out of poverty. Currently, there are over forty-three million Americans who live beneath the poverty line (“Should We Raise”). Of those in poverty, many are trying to support themselves, as well as their families, while living off of a minimum wage job.

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679 Words | 3 Pages

To begin with, the federal minimum wage should be raised because it would increase jobs and economic activity. Economists from the Federal Reserve Bank of Chicago believe that raising the minimum wage to $9 an hour would increase household spending by 48 million dollars. Increasing the amount of household spending would help the economy by injecting more money in the economy. In addition raising the minimum wage to $10.10 an hour would create 85,000 more jobs for the United States. Creating new jobs would help the economy because people would have more money to spend which would increase the economy.

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701 Words | 3 Pages

I believe that there is no reason to increase the minimum wage because the cons outweigh the pros considerably. In society today we like to be efficient so that means one wants to pay for something that has a greater value than the cost. So let's say that a child wanted to wash the dishes as a chore for a minimum wage of 3 dollars and after this the job was done and the child was paid because the value of the job outweighed the cost of it. On the other hand let's imagine if the minimum wage for this child was raised and he decided to charge 30 dollars to wash the dishes then in this scenario the child would be rejected and "unemployed". This happened because the value didn't outweigh the cost of the job.

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1656 Words | 7 Pages

Ultimately, regardless of how enticing it is to simply raise the federal minimum wage, such an action will doubtlessly provoke economic instability, further limit job opportunities, and certainly will not help reduce poverty. At the moment, the whole country has become fanatical about the federal minimum wage issue. As demonstrated by several protests throughout the country, the majority of the people are in favor of hiking up the federal minimum wage. Surely, being a representative of the people, it would be a

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800 Words | 4 Pages

Some reasons why people disagree is because they can lose their business by going bankrupt and housing prices increase. Increasing the minimum wage would cause economic strain in many ways to workers already living in poverty. Another problem resulting from an increased minimum wage is that of potential job losses. Economists believe that increasing the minimum wage will increase the unemployment rate because if the cost of hiring workers rises, businesses are most likely to hire fewer employees to cut their costs. So, there will be a higher unemployment rate.

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566 Words | 3 Pages

Americans below the poverty line are demanding for increased pay in their minimum wage jobs. Although with the increase to fifteen dollars an hour, many Americans would be left jobless pushing them farther under the poverty line increasing the wage by over half would harm the country’s economy more than improve it. Minimum wage workers want higher wages for the work they provide, but inflation, unemployment, and businesses closing will only cause more issues for Americans. The disadvantage to raising the pay for minimum wage workers is inflation.

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1531 Words | 7 Pages

Higher wages attract more employees and reduces turnover, which results in company’s saving money. In addition to assisting employees to live above the poverty line, a minimum wage increase would benefit owners. A higher minimum wage would benefit people across the board, it should stop being politicized so

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999 Words | 4 Pages

As a country, we’re facing an epidemic where finding steady employment is hard and the cost of living is high. This has caused many people to work a minimum wage job and struggle with paying rent and etc. A solution proposed to solve this problem would be to raise the minimum wage to something that a person could survive off of. However, this controversy has caused a debate between people who are split on the issue. There are people who are for it and people who are against it.

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839 Words | 4 Pages

Should the minimum wage be increased? Some say yes while others argue. This is one of the biggest economic question in the U.S. today. The minimum wage was last increased on July 24, 2009, when it rose from $6.55 to $7.25 per hour. Proponents of raising the minimum wage declared that it will help the American economy while the opponents argue that it will harm the economy.

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1856 Words | 8 Pages

In 2013, 3.3 million Americans worked at an hourly rate at or below the federal minimum of $7.25 (Undisputed Facts 3). Hourly workers take on the difficult and dreaded work that no one else wants to endure, and in return, receive the bare minimum. Minimum wage workers deserve more, but instead they find themselves dealing with the hardships placed upon their families and themselves because of a lack of companion from the federal government. This is a serious problem that needs to be rectified, not only in the United States, but around the world. The national minimum wage should be raised to achieve alignment with the rising cost of living, reduce poverty, and create more jobs.

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571 Words | 3 Pages

In 1970, the minimum wage was only $1.60, but this fit along with the price of the economy. Now, there is talk about raising the minimum wage to a whopping $15.00 an hour. While many Americans believe this to be an insane amount, others believe it is accurate and will help the United States in a way different than anything else. Raising the minimum wage amount will increase the quality of life, strengthen the economy, and change the poverty percentage. The minimum wage was established in 1938 as part of the Fair Labor Standards Act (FLSA).

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