ipl-logo

Essay On Should Minimum Wage Be Abolished

1130 Words5 Pages

Minimum wage was first established in 1938 by Franklin Delano Roosevelt, in an attempt to stimulate economic growth and create a better standard of living for the lower class. This attempt was fairly successful, but also has many consequences. You may be asking yourself, “how on Earth could setting a limit on how little you can pay someone be bad?” On the surface this statement seems logical, but if we delve deeper we begin to see many negative effects on the implementation of minimum wage. In our nation the minimum wage law almost seems out of place, like it doesn’t quite fit in. The reason for this, is the core mechanics within a market economy. A market based economy is defined as “an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.” (Merriam-Webster) As you can see minimum wage does not follow this rule of competition and the decisions of private investors. It is in the economy’s best interest to abolish minimum wage because it will cause an increase in employment, stimulate economic growth, and allows for an easier escape …show more content…

Many people will try to state the fact that employers will simply pay an extremely low rate, but this is simply not the case. The reason we are able to infer this is due to the principle of supply and demand. With such large economic growth, there will immediately be a demand for labor. Whenever you have a high demand for an item, you will see an increase in price and a decrease in abundance. As the competition for labor increases, the laborers will end up with better wages then they had to begin. These laborers then begin to spend their now higher wages furthering this economic

Show More
Related
426 Words | 2 Pages

Also, it will increase drug use. Another reason is that if there is an increase in minimum wage it would encourage workers with less skill to stay at the same level of experience that they have because nothing is pushing them to get a better job or to earn promotions. If the minimum wage were to be raised, people who are in poverty and that is on welfare has almost all the support they need to get a degree and try for a better job. People that are on

Read More
1094 Words | 5 Pages

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

Read More
1913 Words | 8 Pages

The purpose of the federal government setting the minimum wage is to create a standard wage across the states in an attempt to keep people out of poverty. Having the federal government set the minimum wage allows for equality between races, sexes, and any other identifying factors. The purpose of the minimum wage is also to ensure that low-skilled workers are being paid adequately for their services. A federal minimum wage increase would have several consequences that outweigh the pros of the increase. For example, the increase would cause large amounts of inflation that affect the rest of the country, even those who work higher-tier jobs.

Read More
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.

Read More
971 Words | 4 Pages

Although examinations of previous adjustments have not revealed a remarkable impact on employment, experts agree that some level of increasing could hamper the employer’s ability to pay consequently leading to a reduction in employment (Manzo, & Bruno, 2014, p. 3; Gibson, 2016). Logically, the minimum wage dictates the minim price that a worker could ‘sell’ his/her services to an employer. In this regard, the employer becomes the purchaser and the job seeker becomes the seller of services. Where the price of the seller is too high for the buyer, then the buyer may desist from purchasing. In this case, the job seeker will not be hired by the employer, which would result in the loss of a job opportunity and poverty for families, individuals, and

Read More
331 Words | 2 Pages

Minimum wage is the least amount of money per hour that employers are required to pay according to the law. The minimum wage is set to be the standard of living. Due to inflation, $7.25 an hour has become less than the minimum necessary, causing many Americans to fall well below the poverty line. The government should raise minimum wage to create more job opportunities, decrease government assistance, and increase the economy overall. The economy will raise as a whole when workers put their money back into the community.

Read More
473 Words | 2 Pages

The minimum wage is supposed to be the starting point of someone’s wage/entrance into the world of business. For example, if you start working somewhere, they might pay you minimum wage if you have no experience or no education in that particular area. If you’re only worth “x” amount of dollars an hour, I’ll only pay you “x” dollars per hour. This is why someone with a college degree will be able to go farther in life than most of those without a college degree.

Read More
688 Words | 3 Pages

Conclusion and Recommendations: In conclusion, high minimum wage is starting to become a growing concern as time goes on. Many stakeholders are affected by high minimum wage, which includes, employees/future employees, managers, foreign/local organizations, and also the Canadian government. Just like how managers have to somehow find a way to achieve a goal while minimum wage continues to rise, the government also have to find a way to control minimum wage in a way that all stakeholders involved will be satisfied about it. This becomes very difficult as employees ask for a higher minimum wage, and foreign/local managers wish for a lower minimum wage to cut back on expenses.

Read More
1506 Words | 7 Pages

Minimum wage is not enough for people to rely on. Many people that make minimum wage are likely to go through a time of poverty. Employees that make minimum wage are said to put less effort into the job, than the

Read More
711 Words | 3 Pages

Since the Great Depression, there has been a minimum wage in America, but this minimum wage has changed 22 times since the Great Deprnbession. Many people say minimum wage should stay at $7.25 like it has been since 2009. Meanwhile, other people believe that minimum wage should be $15.00 so they can have more money to live comfortably. People think that a higher minimum wage will help, but it will hurt more people than it will help. If America makes the minimum wage $9.00, people will no longer be in poverty and it will make the economy balance out.

Read More
607 Words | 3 Pages

There are a lot of potential benefits for an increase in minimum wage and on the surface it’s hard to see why you wouldn’t want to increase the wage. One of the clearest to see is that an increase to the minimum wage will also increase the spending for each household during the following years. So it works to help stimulate the economy in whatever area you increase the minimum wage. Along those same lines increasing the minimum wage will lead to a decrease in poverty as well. With the decrease in poverty you will also see a decrease in government spending on welfare items because the individuals receiving the higher wage in theory will be able to pay for these services/welfare items without assistance.

Read More
675 Words | 3 Pages

Minimum Wage Jobs Analysis on Boxers, Briefs, and Books by John Grisham Why would I choose to work for a minimum wage job that makes me want to pull my hair out? In the short story, “Boxers, Briefs, and Books, by John Grisham shows that a minimum wage job can be miserable, but having that job can lead to our calling in life. Grisham talks about his background when having low paying jobs, and he talks about the having those jobs made him achieve his dreams. The experiences he faced when going through the different jobs made him into the man he is today.

Read More
521 Words | 3 Pages

Performance-Based Pay: Should the Minimum Wage be abolished? Over time, economists have been researching on the necessity and effects of minimum wage on peoples’ lives. It is the amount of compensation imposed by the federal government since 1938 below which laborers should not sell their services. Since then, this wage level has been increasing with time.

Read More
704 Words | 3 Pages

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.

Read More
1028 Words | 5 Pages

Minimum wage sets the baseline as the lowest wage an employer can legally pay a worker. Designed for a specific purpose, minimum wage gives a standard to pay people that have the bare minimum skills and can’t do work that is worth anything more than bare minimum wages. Minimum wage represents payment for jobs that anyone can do. No skills are needed, or involved, and it can be accomplished by any able bodied human. Contrary to popular philosophy, minimum wage is not designed to be a wage that can support a full household.

Read More

More about Essay On Should Minimum Wage Be Abolished

Open Document