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Minimum Wage Good Or Bad Essay

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Increased Minimum Wage; Good or Bad?
The federal minimum wage has been in effect since The Great Depression. Recently, it has become a highly controversial issue. Should it be raised or not? Some ask if it should exist at all. And, the biggest question of all, how does the minimum wage affect the profitability of a business? Increasing the minimum wage causes many issues regarding the economy and the business industry. Increasing the minimum wage would force businesses to lay off employees and raise unemployment levels. The Congressional Budget Office projected that a minimum wage increase from $7.25 to $10.10 would result in a loss of 500,000 jobs. In a survey of 1,213 businesses and human resources professionals, 38% of employers who currently …show more content…

“A higher minimum wage represents a particular challenge for restaurants, which depend heavily on hourly workers,” William Fahy, vice president and senior credit officer for Moody’s, said in a statement. The increased cost of labor will likely cause higher costs to customers, which as Fahy noted, would be bad for restaurants trying to maintain profits. (Wolf, “Restaurants Will Suffer..”) Also, raising the minimum wage can cause small local businesses to shut down because of the lack of money available to pay the …show more content…

On the other hand, increasing the minimum to that amount two years ago might have cost the economy about 500,000 jobs, or 0.3 percent of the workforce, by 2016, the CBO found. California's move to increase its minimum wage to $15 by 2022 say it could cost the state as many as 700,000 jobs, including in the manufacturing sector, where 600,000 workers earn less than the new state minimum. (Quittner, “What A Minimum Wage

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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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According to William Dunkelberg, a writer for Forbes magazine, by raising minimum wage there could become less jobs than before. Though the people who have jobs would be making more money, smaller companies wouldn’t be able to pay for their employee’s, and would have to let people go. “Small businesses stay in business

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Raising the minimum wage will ruin our economy. Look at the big picture, businesses and companies will struggle or close, poverty will increase, and the price of consumer goods will rise. There are a few things that let economists know how the economy is doing at the moment. They’re called economic indicators, and 2 of them are consumer confidence and unemployment rate. The more people that are unemployed, the less money being used to buy things which hurts the economy.

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Should the federal minimum wage be raised? I don’t believe that the minimum wage should be raised at all, because it should be for people who have little to no skill set; not for people with a family who are trying to live off of it. Right now the federal minimum wage stands at $7.25 an hour, but some states have raised it to be higher; take Michigan for example. Michigan’s minimum wage is $8.15 (before taxes are deducted) an hour. Some states, depending on what it would be changed to, may not even see a difference.

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Positive effects of raising the minimum wage to fifteen dollars in 2016 are that it boosts the economy, and creates a positive GDP. By increasing the minimum wage to fifteen dollars an hour, which is double what the minimum wage is today, you are increasing consumer spending which increases GDP. Studies have shown that low-waged workers put every dollar they earn plus more back into the local economy when they were given a raise. Workers strived to work harder as their wages were raised.

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Raising minimum wage in the United States would benefit over twenty eight million workers. Raising minimum wage would help businesses and would also give workers with minimum wage salaries more money then just enough to get by. The money these workers earn will go into businesses in and near their communities. Also the cost of living wages have increased throughout the years. With a minimum wage salary you have to work a forty hour work week without paying more than thirty percent of their income.

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Various people are for the raising this minimum wage. Raising the federal minimum wage would have many more negative effects than positive effects on America and society as a whole.. Increasing the federal minimum wage would have many more drastic downfalls than positive outcomes on America. One negative effect this would have on society is the demise of small businesses. For instance, small businesses would have to lay off many workers.

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Employees as well as employers and consumers will be affected by a jump in minimum wage. An article that highlights the flaws of the “Fight for Fifteen Movement” states, “The bandwagon for a $15-per-hour minimum wage has run head-on into the laws of economics. It’s pretty much totaled” (Kreutzer 2018). This illustrates the point that the laws of economics, as we read in our textbooks, will not allow the desired results that many believe a minimum wage hike will produce. While wages will increase for hourly workers, the hours they work may be cut as a result.

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Raising minimum wage would increase tax rates, which means poverty levels rise and high rates of unemployment do to the fact businesses will lose money. To Start off, You might need to read about the history behind the problem. Before minimum wage in 1929-1930 those years were known as the depression years people were losing jobs and poverty was a big issue.

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When a higher minimum wage is enacted the effects will be different for companies, industries and the labor market in general and we will also have different effects on the employment market. The main effect and impact will be for low paid jobs particularly in industries like food, restaurants and retail. This topic is very controversial and has supporters and deniers on both sides of the political and the economical world. I support the increase in minimum wage and I believe it should be linked to the inflation and the living wage.

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The U.S. has done fine with a low minimum wage, there is room for improvement when it comes to economics, but raising the minimum wage is not the way to go. One of the first outcomes of

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J.B Maverick states that “for some unfortunate people it can also cause Job loss and a more competitive job market”. Companies are always looking for ways to save money, and if they are forced to give employees raises it will cause companies to fire employees that aren’t deemed necessary enough for the pay they would be getting. According to the congressional budget office, Some people could be heavily affected by the wage increase and stay unemployed permanently while others might come and go making a higher wage than they use to while they work. Raising the minimum wage will also cause a more competitive job market as people will be trying to get new jobs or are reinspired to get jobs after leaving the

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A higher minimum wage will help consumer spending power to recover and once again power our nation's economic growth. A hefty minimum wage hike is an important first step in achieving a sustainable economic recovery. In our current economic climate.

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Along with that, This would not make it fair for smaller businesses that just started out because it could possibly force them to close if they are not able to pay for the amount of employees that they need. To add on to this, The loss of all the jobs would make it a lot harder to get a minimum wage job because of all the competition that a high minimum wage would cause. An article reads “The net outcome of an increased minimum wage would be a large number of overqualified workers taking minimum wage positions that would ordinarily go to young or otherwise inexperienced workers” (J.B Maverick 1). This quote shows the negative impact that the raise of minimum wage will cause by the overall competition for a menial, minimum wage job. This then makes it a lot more grueling just to find a minimum wage job for the inexperienced teens that are just trying to make some money.

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Many argue that an increase in minimum wage will help guide low skilled workers out of poverty and assist them into having a better career. That is not necessarily true, Many economists can agree that minimum wage jobs such as cashiers, host or a hostess are not jobs that meant to support a family. If anything by raising the minimum wage, it will put more people in poverty than guide them out of poverty. A raise in minimum wage will cause loss of jobs, an increase in the inflation rate, increase in

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