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Minimum Wage Persuasive Essay

775 Words4 Pages

Minimum wage is defined as the lowest wage an employer can pay a worker as established by federal, state, and local governments (Minimum Wage 2018). Many states and local governments have chosen to establish a minimum wage that differs from the federal minimum wage, either higher or lower. For states with no minimum wage legislation in place, there are general guidelines in place for most positions that establish a standard for minimum wage. It is difficult to set a minimum wage because it affects different job markets, economies, and types of workers in very different ways. At first glance it may appear that a minimum wage hike is an effective measure in alleviating poverty and income inequality across the United States. However, digging further …show more content…

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. Regions that are suffering economically will not be able to handle the subsequent increased cost of hiring and keeping workers. Their already small margins would become even smaller. The increased cost of labor will result in less-skilled and young workers getting cut out of the job market. Over time, companies will react to the increased minimum wage and the cost to purchase products will increase. Consumers will be unable to afford the goods that they once were able to purchase regularly and the market will embark on a downward spiral. Other consequences include an increase in unemployment, continued and potentially increased poverty, the shutdown of companies that cannot sustain the cost increases, and more. As you can see, there are many short-term and long-term consequences to a drastic increase in minimum wage. While this legislation is still fairly new, there may be many long-term consequences and/or benefits that we have yet to

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