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Effect of minimum wage on employment
Effects of higher minimum wage
Effect of minimum wage on employment
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More handpicked essays just for you.
Effect of minimum wage on employment
Effects of higher minimum wage
Effect of minimum wage on employment
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Is it ethical to raise the minimum wage when it doesn’t necessarily affect the very poor, the people it’s aimed at helping? The minimum wage is the lowest hourly wage an employer is permitted by law to pay an employee for his work. The current federal minimum wage is set at $7.25 an hour. Across the country, there is an overwhelming push in favor of raising wages for our poorest workers. In January 2016 the minimum wage in California was raised to $10 an hour.
I watched a documentary called “Living on Minimum Wage” in the series Thirty Days. In the series Thirty Days, a man named Morgan Spurlock puts himself into certain situations to experience the problems some Americans face everyday. Mr. Spurlock decided to live off of minimum wage in the state of Ohio. The minimum wage in Ohio now is $8.10 per hour, but in 2005, when the episode was filmed, the minimum wage was $5.15 per hour. He started off with one week worth minimum wage ($300).
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.
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.
Like mentioned before, raising the minimum wage would allow millions of Americans to provide their families with basics needs and living expenses. With many Americans thousands of dollars under the poverty line, the low minimum wage forces these people to seek additional help from the government. Employee's surviving at minimum wage are also often the same people who must rely on additional support of government run social programs to support themselves and their families on such a small amount of income (Halvorson). Raising the minimum wage could also encourage many employees to work harder while feeling accomplished by getting paid more. A minimum-wage boost could improve worker morale, which could in turn improve productivity and help keep turnover rates down (Williams).
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.
Raising the minimum wage will cause many people to lose their jobs, prices to escalate, and may force other professions to raise their pay. However, if nothing is done, many people will continue to struggle day-to-day, check-to-check. While raising the minimum wage has a lot of problems, I believe there is one way everyone can be happy. Boost the economy. By boosting the economy money goes back into the country and in turn, lower the cost of living.
A minimum wage was created so employees would receive a fair pay for the job that is being done. But, there is a limit to how high the minimum wage should reach. Raising the minimum wage can cause a great deal of issues in America and put a gross amount of people at a disadvantage. Many citizens in America believe the minimum wage should be higher, but the solution is not to have a higher minimum wage.
Jon Corzine once said, “No family gets rich from earning minimum wage. In fact the current minimum wage does not even lift a family out of poverty” (Brainy). Kids are struggling to get through college, parents are having trouble providing for their family all due to their low wage jobs. Teenagers are the most common individuals to get minimum wage jobs and with these people going to college, it is nearly impossible to save enough money. When thinking about raising the minimum wage, one has to realize the work shift change in hours.
The minimum wage was initially established to reduce poverty. Instituting a lowest pay level permitted in the United States guarantees that individuals are paid reasonably for their work and protects younger workers and minorities from being paid less than others. The current United States federal minimum wage is $7.25 a hour, and many argue that with increasing living expenses, the federal minimum wage should be raised, however, increasing base salaries can lead to inflation, fewer worker benefits and increased unemployment. Raising the minimum wage may allow employment to decrease across the country and can even result in fewer jobs for Americans. Businesses must pay their minimum wage employees the required pay and if increased, some
A raise in minimum wage would make things worse for many people. The Congressional Budget Office projected 500,000 jobs would be lost due to a 2.85 dollar increase of the minimum wage. There was a survey taken by 1,213 businesses and human resources professionals, 38% of employers who pay minimum wage stated
After calculation, they are $23,257 short on living wage. There is also an opportunity cost that if both parents are working, they give up the time that they could have to spend with their
There is ongoing debate about the potential effects of raising the minimum wage. The debate has always been on the priority list for many groups, but since COVID 19, it has been especially important. Some studies have suggested that raising the minimum wage could lead to job losses, particularly for low-skilled workers. Other research has found that raising the minimum wage can have positive effects, such as helping workers' well -being and increasing the purchasing power of low-wage workers. Although some research supports increasing the minimum wage, there is more evidence against.
Raising the Minimum wage: Poverty and Equality. A. Poverty In an attempt to decrease poverty level in the U.S, as it is a basic right to the citizens, some researchers pointed to the consequential benefits of raising the minimum wage, but, on the other hand, some add that this is not the solution and it would rather risk increasing the poverty rate in the U.S. due to many reasons. In a zoomed in argument in such vital controversial issue, Some proponents argue that by raising the minimum wage to $10.10, incomes for an estimated 12 million people now in poverty will raise, lifting 2 million families out of poverty.
Minimum Wage is the lowest wage an employer is allowed to pay its employee by law. It has been a fundamental part of our economic growth and has been first instated by congress in 1938 as part of the Fair Labor Standard Act. With about 14.8% of Americas in poverty, there has been much debate on whether it should be raised or not (Census). However with economic change and inflation, minimum wage has been raised in the past. Though raising it many times in the past, many economists still think it’s not enough to live on.