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Minimum Wage Sociology

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Introduction More numbers of state are joining to take action to raise the minimum wage to $15 per hour in a few years even though there is a high disputing controversial all over the nation. The federal has set the minimum wage level to $7.25 on Jan. 1, 2015. In less than a year the index number of the minimum wage is going up automatically with cost of living. And eventually it will be likely to increase year by year with automatic and expectation index. Is it really a good thing to raise the minimum wage to meet the basic need for poor people? Is it the best way to prevent poverty rate and income inequality? Answers must vary from skeptical to comprehensive response depending on whoever answers these questions. Amid a debate on this …show more content…

Because taking into account negative employment effects and increases in consumer prices induced by the minimum wage would wipe out any positive direct effects on household affected by the minimum wage. The minimum wage becomes even less effective in reducing income inequality when negative employment effects are taken into account. I will address the negative effects in sociological aspects by the …show more content…

We find no evidence that minimum wage increases between 2003 and 2007 affected overall state poverty rates.”(Leigh, A. (2007) Proposals to increase the minimum wage are politically popular because they are widely seen as an effective way to help the working poor. In spite of it, state and federal minimum wage increases between 2003 and 2007 had no effect on reducing the poverty rates. “Minimum wage increases have thus far provided little more than symbolic support to the working poor.” (Card and Kreuger 1995, p. 593) This finding shows that the minimum wages fail to reduce poverty because many poor Americans do not work. Also, this increase would not be well targeted at low income households, and would only influence negligible effects on the income inequality. All these evidence suggest that the minimum wage increases do not reduce

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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.

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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

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567 Words | 3 Pages

Some people who are against the raising of minimum wage suggest that there is no concrete evidence that supports the claim that higher minimum wage will help those who live in poverty. Low income families and low wage workers are actually different (Neumark A.11). By raising the minimum wage, benefits that families would usually get goes significantly down (Neumark A.11). Although arguments from both sides of the issue are very persuasive, I find one of the arguments the most

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630 Words | 3 Pages

This is because an increase in the minimum wage is based on improving the income and ultimately the lives of the lower class members of the community as far as salaries are concerned. However, these advocates rarely take time to investigate what the consequences of changing the minimum wage laws and policies (Sowell, 1). According to the fundamental economic principles, individuals are more

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601 Words | 3 Pages

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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876 Words | 4 Pages

In the last few years, the topic of the minimum wage has been a highly debatable subject. There are numerous perspectives regarding raising the minimum wage. “The concept of the minimum wage can be defined as the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period,” (ILO,2014). A few of the common disagreements are how unemployment rates will be affected, who will be most affected by a change, and what alternatives are available. In the article “Why the next president should raise the minimum wage” Roger Lowenstein argues that it is his belief that raising the minimum wage will benefit society by reducing unemployment rates and thus reducing the amount of the population living in poverty.

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1993 Words | 8 Pages

In fact, 18% of the benefits would go to households with an annual income less than $20,000. Benefits of an incrementation disproportionately avail those working households at the bottom of the scale. Albeit households in the bottom 20% receive only 5% of national income. Benefits of the antecedent minimum wage increase peregrinated to these workers. A majority

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733 Words | 3 Pages

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

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105 Words | 1 Pages

Since the election and reelection of President Barack Obama the increase in minimum wage has been a major topic for the United States. His proposal to increase minimum wage has sparked a lot of controversy with some Americans. Many believing that increasing minimum wage will have a negative impact on our economy and even our educational system. They argue that increasing minimum wages will harm the very people it was intended to help because it will increase housing cost as well as the price of consumer goods. They argue that it will decrease the high school enrollment rates at the same time increase dropout rates.

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636 Words | 3 Pages

Many politicians, business owners, and citizens hold fast to the belief that heightening the salary attached to minimum wage positions will yield negative benefits for our society. This opinion is supported by three vital view-points. The first can be found in the news article, “The Argument Against Raising Minimum Wage.” It expresses how the enlargement of this payment will take a toll on employment. The document reasons that if the amount of money employees earn is expanded, companies will be less likely to hire as many workers (Huppke).

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670 Words | 3 Pages

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.

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711 Words | 3 Pages

If America raises the minimum wage to $9.00, it will help people in need or in poverty, but it also won’t hurt people in the workforce. If you increase the minimum wage to $15.00 it will make unemployment rates go high up. Which in the process, makes the homelessness rates go up in the country and in your community. If you keep the minimum wage at $7.25 people will stay in poverty and homeless or on the verge of homelessness.

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880 Words | 4 Pages

Minimum wage and poverty With everything going on with the Walmart workers picketing for fifteen dollars an hour wages, the topic is widely discussed with many people taking many different sides. The essay “Raising the Minimum wage will reduce poverty” By Sharon Parrott and Jason Furman, They go into how they think the minimum wage should be raised in order to decrease poverty in america, Of course there are reasons to raise it and reasons to not raise it. Yet with the multitude of reasons for and against it, it’s hard to make a decision that makes everybody content, Some of the reasons not to raise it include, Raising it can make prices for everyday items go up, Why go and spend thousands of dollars on college when you could get a decent job right out of high school, and Why let workers who work at unskilled jobs make as much if not more than the military. Some reasons for minimum wage raising is, The fact that the cost of living is higher means people can’t survive with minimum wage without federal care, And just helping people get back on their feet when they couldn’t find a job. The reasons Minimum wage shouldn’t be raised outweigh the reasons it should.

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607 Words | 3 Pages

Every time the minimum goes up she sees no change in her wage but an increase in prices for food to feed her kids. I’m not saying that an increase is bad, just that we clearly aren’t doing enough research in order to make effective policy. There may not be a perfect answer that makes everyone happy, but there has got to be a more effective way to deal with our issues of poverty and low wages. What we need is better information that’s used properly to make more effective

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704 Words | 3 Pages

However, in the long run, many employers will not be able to maintain to stay in business due to the significantly high wages. An increase in minimum wage would cause millions to lose their jobs and put them further in poverty. It would even make it harder for them to obtain jobs after the increase due to the increase of competition in the job market, and most importantly an increase in minimum wage would cause increase in the price level and it will reduce significantly consumption due to the lack of purchasing power that is cause by the higher inflation rate. The minimum wage should not increase because it is unsustainable economically. Another approach of help guide people out of poverty can be a push for an increase in education and knowledge capital instead of continuously increasing the minimum

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