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Pros And Cons Of Minimum Wage

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There have been a lot of riots from minimum wage workers about raising the federal minimum wage to $15 an hour. However, many employers and non-minimum wage workers disagree. Many say that raising the minimum wage would damage the economy, and make house payments double, making the raise in minimum wage completely useless. Others might say that by raising minimum wages, more employers will lay off their employees and replace them with more robots, because it’s cheaper than paying a human worker $15 an hour. However, the real evidence behind why we shouldn’t is quite shocking. Increasing the minimum wage does have its pros, but it also has it’s cons. One of those cons is by increasing the federal minimum wage, highschool dropout rates will increase. Since teenagers take up most of the minimum wage jobs, increasing the pay will encourage them to drop out. A study and survey has shown that about 43.7% of minimum wage workers are high school and/or college dropouts. Also, if the minimum wage was raised to $15 an hour, it will make teenagers think that they can live off of that job and don't see the need to finish their education. If the minimum wage is increased, the price of our consumer goods will rise. The …show more content…

Most will say that raising the minimum wage would inspire employees to work harder. Although this may be true, it also wouldn't be fair. For instance, someone has worked at this place for 3 years and for 2 of them he/she was only paid $9 an hour, that employee is now training a new employee for his/her new job, now even though that employee is new and isn't used to working there, they are still paid the $15 an hour. Another point the other side would make is increasing the minimum wage would fix the gender inequality in pay. However, gender inequality hasn't been much of an issue in the U.S. after a law passed in 2009 that all minimum wage workers were now paid $7.25 an

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If they raised the price than the people who make minimum would have to make more money so they would have to work two jobs making they spend less time with friends and family. Raising minimum wage would do absolutely nothing because it 's like if you had 2 dollars and something cost 4 you work a week get 20 dollars and then have 22 you can buy it but then the price raises to 26 dollars and so on. Finally people suggest the fact that even if you raise minimum wage than not all people would still want a job and it would be harder to find a job making the poor population either rise because of people getting fired or get better because of people finding

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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

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2415 Words | 10 Pages

The Federal Minimum Wage is widely considered to be the backbone of American workers’ rights. Minimum wage was created and implemented to ensure that workers get paid fairly for the time that they work, and get paid enough to support themselves and their families. However, this, though once a reality, is no longer happening. Because of the inadequacy of the Federal Minimum Wage, and perhaps more importantly, the gross negligence of the Executive Branch of the United States government of said inadequacy, as was displayed by the Republican­controlled Congress blocking a bill in 2014 that would have raised the Federal Minimum Wage to $10.10 per hour, workers are suffering and struggling to avoid poverty and personal economic disaster. The federal

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543 Words | 3 Pages

They conclude that increasing minimum wage to $15.00 would only kill the amount of jobs available. This is a basic application of supply and demand. The higher the cost of something, the less that it will likely be bought. If wages are doubled, then companies might fire some employees and/or regulate the amount of hours someone works. However, this argument has been proved wrong.

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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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584 Words | 3 Pages

The increase in minimum wage would also increase the number of jobs moved to other countries where the wages are drastically lower than here in the US. These are just a few examples affecting

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290 Words | 2 Pages

At first glance, raising the current minimum wage seems like an outstanding idea and one may think, “Hey, it’s not hurting anyone.” In reality these good intentions will result in many unintended consequences such as causing businesses to hire fewer workers, it has no effect on reducing poverty and will decrease employment. A common misconception referring to minimum wage in the United States is that the current minimum wage is not enough to make a living and support a family. The majority of minimum wage workers are between the ages of 16 and 24 years old.

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679 Words | 3 Pages

To begin with, the federal minimum wage should be raised because it would increase jobs and economic activity. Economists from the Federal Reserve Bank of Chicago believe that raising the minimum wage to $9 an hour would increase household spending by 48 million dollars. Increasing the amount of household spending would help the economy by injecting more money in the economy. In addition raising the minimum wage to $10.10 an hour would create 85,000 more jobs for the United States. Creating new jobs would help the economy because people would have more money to spend which would increase the economy.

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How Raising Minimum Wages Will Affect Us In an article written by Wesley Coopersmith, Minimum wage: more harm that good, of Americans for prosperity, published on December 19, 2013, Coppersmith argues what problems could happen if the minimum wage is raised to $15 an hour. Coppersmith starts off by saying that President Obama called for an increase in minimum wages to help people who are struggling in the United States, but Coppersmith does not seem like he agrees with that because of what other harm it could possibly cause. He says that raising minimum wages may cause unemployment, that it will hurt those who are less skilled, and that if minimum wages increase then the price of our necessities will also increase. Coopersmith’s argument

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It is my belief that raising the minimum wage reduces employment because it puts too great a burden on the small business and that based on the principle of supply and demand, allowing the market to dictate labor costs is the best

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The article, “What Are the Pros and Cons of Raising the Minimum Wage?” written by J.B. Maverick, a commodity futures broker and stock market analyst, provides a list of the pros and cons of the debate about raising the minimum wage. The article argues that, “among the disadvantages of increasing the minimum wage is the probable consequence of businesses increasing prices, thus fueling inflation” While this statement is partially correct, it is entirely misleading. Business prices will increase considering they are paying their workers more. Nevertheless, with the employees getting paid higher wages, more money will be put into surrounding businesses, causing a sustainable and well-functioning economy. While increasing the minimum wage will cause inflation, “our model-based analysis suggests that the Federal Reserve’s tolerance of higher temporary inflation could support any expansionary effects of a minimum wage increase and mitigate any contractionary effects''

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723 Words | 3 Pages

With a higher minimum wage we would end up paying less for Medicaid, food stamps and other assistances people living in poverty need to survive. Many members of congress also conclude that if the minimum wage was raised correctly for inflation from 1968 it would be $10.10. By boosting pay in the low-wage jobs on which more families are relying than ever, a stronger minimum wage will help restore the consumer spending that powers our economy and that local businesses need in order to

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1536 Words | 7 Pages

Introduction Minimum wage is the lowest hourly rate an employer can pay an employee for hours worked. The topic of raising the minimum wage is a sensitive issue for many people. The livelihood of many relevant stakeholders will be directly effected by policies created in regards to raising minimum wage, both positively and negatively. This paper will examine the history and current state of minimum wage. It will identify the issues connected to raising minimum wage, analyze the arguments for and against, and make recommendations based on the analysis.

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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.

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704 Words | 3 Pages

Many argue that an increase in minimum wage will help guide low skilled workers out of poverty and assist them into having a better career. That is not necessarily true, Many economists can agree that minimum wage jobs such as cashiers, host or a hostess are not jobs that meant to support a family. If anything by raising the minimum wage, it will put more people in poverty than guide them out of poverty. A raise in minimum wage will cause loss of jobs, an increase in the inflation rate, increase in

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