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Effects of raising minimum wage
Effects of raising minimum wage
Positive versus negative affects of raising minimum wage
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In the article, “Minimum Wage Hikes Hurt Low-Income Workers,” Jame Sherk debates how an increase in the minimum wage would impact workers and corporations. Sherk builds his argument by first explaining the recent history of an increasing minimum wage and how much it has risen. Following, he argues why it would hurt businesses and low-income workers. Lastly, after illustrating the consequences, he offers statistical evidence to support his claim and to prove to the reader why the hike would only hurt both businesses and low-income workers. Sherk’s use of evidence and explanation offers a strong argument and a clear stance.
In the article “A $15-Hour Minimum Wage Could Harm America’s Poorest Workers”, Harry J. Holzer outlines the effects of a fifteen dollar federal minimum wage. He interprets statistical data from different credible analyses and thoroughly explains the meaning of each. The author also does a great job informing us the results from past federal minimum wage increases. He recognizes that jobs will inescapably be lost; therefore, many people will be unemployed. While some citizens believe that a $15 raise will help the economy, the author comprehends the negative consequences of any federal minimum wage increase on the economy.
Minimum wage would raise the wages of many workers and increment benefits what disadvantaged workers. An estimated 6.9 million workers would receive an incrementation in their hourly wage if the minimum rage were raised to $10.15 by 2015. Due to the spill over effect the 10.5 million workers earning up to a dollar above minimum wage would withal be liable to benefit from an incrementation. Women are the most astronomically immense group of beneficiaries from a minimum wage increase. Sixty percent of workers who would benefit from an incrementation are women.
A minimum wage increase from “$7.25 to $10.10 would result in a loss of 500,000 jobs”. ("The Effects of Minimum-Wage Increase on Employment and Family Income”) This claim is better because it shows how raising the minimum wage will decrease job growth instead of increasing it. But, the minimum wage should be increased because increasing will also increase economic activity and spur job growth, decrease poverty, and improvements in productivity and economic growth have outpaced increases in the minimum
The orthodox approach that considers the increase in minimum wage will reduce the employment is not supported by any strong proof. A research study conducted by Card and Kreuger in California and New Jersey highlighted that in the year 1988 and 1992 when the minimum wages were increased no unemployment affect was witnessed by the economists. Economists have suggested that the increase in minimum wage makes the life of the people better and it does not cause unemployment. Research identifies that the market dynamics cannot be well explained using the supply and demand rules. There are businesses that enjoy a lot of power and they often pay the workers less than their worth.
Out of the 4 issues, I chose the issue about minimum wages. I believe that Liberal Party 's right. This party said that they want and plan to increase the minimum wage to $15. I agree that the minimum hourly wage should be raised. This is because there are lots of citizens that have families or financial problems and sometimes the money is not enough to support a family.
Increasing the minimum wage will help out many families. Because my parents are separated, my mom alone, has to worry about paying everything in time and makes sure we have the supplies, clothes, and food that we need. She works nine hours a day and sometimes overtime in the weekend, so my brother and I don’t get to see her as much as we would like to. “But we want to do it in a way that stimulates the economy and certainly doesn’t hinder the economy,” the minimum wage should be increased, but not so much that it creates difficulties for the economy but it will also reduce poverty. Resulting in increasing the minimum wage, there would be improvements in productivity and economic growth.
In conclusion, a federal minimum wage increase will significantly improve the standard of living of low-wage workers. To meet their basic needs, workers must be given a living wage. It is not only morally correct to do so, but also beneficiary to both ends. The increase in wages allows for a more supportable income, but it also stimulates the economy.
Minimum wage is an extremely diverse topic in the United States. Well, more or less, the debate on whether or not to raise it. Over the past few weeks our class has read several articles and watched a video entitled “Thirty Days”, all of which discuss minimum wage and how raising it would affect society. In this essay I aim to compare and contrast the positive and negative aspects of raising minimum wage based on the articles we have read and the video we watched in class.
Though there are many Americans who believe an upsurge in the minimum wage is a constructive step for the federal government to initialize, the most recent wage push could result in some very harmful effects. President Obama stated in September 2014, “An increase in the minimum wage will boost income for the poorest workers without the danger of creating more unemployment.” Is this statement about an increase in minimum wage really as accurate as people believe? To break down the argument about whether minimum wage is a good or bad thing, let’s take a look at the two very distinct sides of the debate. The push for a minimum wage raise is a major issue in the world of economics and politics.
Simply stated, economists generally separate about the tangible impact of raising the minimum wage. The whole idea behind a minimum wage is to ensure that workers obtain an adequate income for their efforts. The relationship between the minimum wage and subjective well being is, they argue a type of policy motivated research that can provide useful information for policymakers and the wider public (Diener and Tov 2012). By introducing the minimum wage poverty level may be reduced. According to Dube, Nadiu and Reich (2007), the implementation of minimum wage increased the bottom amount of salary for workers which in turn increased their income level and thus resulting in more spending ability.
This essay will look at the minimum wage and its effect on both employers and employees. We will then look at the demographic of employees affected and how the existence of a minimum wage affects these employees. An increase in the minimum wage also has flow on effects on both employers and employees and affects consumer demand. Finally, we will look at the morality of the minimum wage and its’ interaction with the welfare system. What is a minimum wage?
Minimum wage has gained an important place in the brain of politicians to reduce social gaps and inequality. Governments intervene on the market to allocate a better wage towards workers than the one offer by the market equilibrium. This controversial measure raises lots of debate on whether raising the minimum wage results in workers becoming jobless. Government intervention on minimum wage has one main goals: increase the demand by an increasing of wage. The main reason against minimum wage is that it creates unemployment among low skilled workers; on top of that it can be argued that the redistribution effect is not going to the target people of the measure.
In this days it is customary for countries to set a minimum wage for the labor market, this is a minimum amount that the employer can pay to the worker, this is a bottom limit to set the salary of each employee. Governments set this minimum wage determining the minimum income a worker can perceive or which is the lowest amount a company can pay their workers, this in order to try to regulate the labor market so employees do not become underpaid or companies’ abuse workers from their dominant position. But this minimum wage also has downgrades, as it can foment underemployment, informality or unemployment since the minimum wage could be higher than companies are willing to pay as such it needed to consider alternatives. Nonetheless, although
In the past three years, many politicians and labor unions have been pushing for an increase in minimum wage. Minimum wage is the lowest set wage by a law of a government body. An increase in minimum will benefit some people, and hurt others. An increase in minimum wage will cause benefit in the short run but will be very damaging to the economy in the long run. There should not be an increase in minimum wage because it is unhealthy to the economy in the long run and it will be the major cause of job loss, increase in inflation, competition, and the price level of goods and services.
