ipl-logo

Pros And Cons Of Raising Minimum Wage

760 Words4 Pages

1. Describe in general the issue that is being debated;
The issue that is being debated is about minimum wage. Is minimum wage an answer to help reduce poverty or was it effective given that the increase in minimum wage was implemented?

2. Read two or more perspectives on this argument from both sides (support minimum wage increase, oppose minimum wage increase) and describe the authors perspectives on raising the minimum wage to reduce poverty and inequality.
From the articles, “Can Raising Minimum Wage Reduce Poverty and Hardship?” by Dr. Joseph Sabia and Robert Nielsen and “What’s Best at Reducing Poverty? An Examination of the Effectiveness of the 2007 Minimum Wage Increase” by John P. Formby, John A. Bishop, and Hoseong Kim, proponents of raising the federal minimum wage believed that the increase in minimum wage will elevate millions of Americans from poverty. They believed that poverty rates will fall by raising wages …show more content…

To begin with, economists say that many people in poverty do not work. Second, most minimum wage earners are not from poor families. Also, low-income families do not even meet the “low-wage worker” bracket. In effect, they do not benefit from the program. Lastly, raising minimum wage has an indirect consequence to the “low-skilled worker.”

3. Analyze the evidence that each author uses to support his/her thesis: What types of evidence are used? Does the evidence support his/her thesis? The first article by economists Sabia and Nielsen. They conducted a study to support their perspective in raising minimum wage. They collected and used data from the Census Bureau’s Survey of Income and Program Participation. They found out that there is no significant evidence that a higher minimum wage has helped poor families in the areas of finance housing, health, or food insecurity. Therefore, the study conducted supports the authors’ perspective on the issue about raising minimum

Show More
Related

The Pros And Cons Of Raising Minimum Wage

567 Words | 3 Pages

A recent study involving three hundred fifty thousand small businesses and the IRS proved that by raising the minimum wage, proved that by raising the minimum wage in cities, actually created jobs (Meyerson A.19). The survey showed that the cities with a higher minimum wage had more jobs come to the area, aiding in job growth (Meyerson A.19). Another argument that leans toward the raising of the minimum wage involves people in poverty. Studies have shown that by raising the minimum wage, more people can live above the poverty line (Meyerson A.19). By raising the minimum over nine hundred thousand people would be

Read More

Pros And Cons Of Raising The Minimum Wage

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

Why The Next President Should Raise The Minimum Wage

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.

Read More

Income Inequality In America Summary

284 Words | 2 Pages

Even if some low-income workers may be able to benefit from a higher minimum wage, most of the very poor won’t be able to. When they are not in the labor force; they either can 't work because they are too young, old, disabled or unskilled or won 't work; which would create more challenges through their

Read More

The Pros And Cons Of Raising Minimum Wage

1500 Words | 6 Pages

To further delve into this economic dilemma, pros and cons must be analyzed from both sides to better understand what the economic impact will be to the nation as a whole. And by understanding the situation from multiple perspectives, well informed conclusions can be made. When arguing against raising minimum wages, a very common argument seems to jump to the front of the line on the issue. Why should a worker with very limited to no skills be given a pay raise? For example, according to an article from Bruce Horowitz and Yamiche Alcindor, a protest known as “Fight for 15” claims that fast-food workers, and other professions that only earn the minimum wage, cannot make a living solely off of it.

Read More

Pros And Cons Of Raising The Minimum Wage

584 Words | 3 Pages

The impact of a substantial increase to the minimum would be too great for many small businesses, and the unemployment rates would be greatly impacted, as well as financial assistance for those below the poverty level. “Minimum wage was started in 1938 with the passage of the Fair labor Standards Act and has been increased 22 times since” (Pros and Cons of Raising the Minimum Wage). “The most recent adjustment was in 2009” (Pros and Cons of Raising the Minimum Wage) To increase the minimum wage at the current levels being

Read More

What Are The Pros And Cons Of Raising The Minimum Wage

784 Words | 4 Pages

Pro and Cons of Minimum Wage. As the previous reason having more competition would mean that more people would not have enough money to pay their rent, as to increase the

Read More

The Pros And Cons Of Minimum Wage Laws

1393 Words | 6 Pages

The orthodox approach that considers the increase in minimum wage will reduce the employment is not supported by any strong proof. A research study conducted by Card and Kreuger in California and New Jersey highlighted that in the year 1988 and 1992 when the minimum wages were increased no unemployment affect was witnessed by the economists. Economists have suggested that the increase in minimum wage makes the life of the people better and it does not cause unemployment. Research identifies that the market dynamics cannot be well explained using the supply and demand rules. There are businesses that enjoy a lot of power and they often pay the workers less than their worth.

Read More

The Pros And Cons Of Raising Minimum Wage

1018 Words | 5 Pages

According to Dube (2017), “the job losses in the study were far greater than in a control group of similar areas in Washington state (where the minimum wage was not raised). Because the study found that low-wage workers lost income as a result of the increase” (para.2). When the minimum wage is raised, low wage workers see a decrease in income. The job losses entail that raising the minimum wage has a negative impact on low-wage

Read More

The Pros And Cons Of Raising Minimum Wage

869 Words | 4 Pages

U.S Minimum Wage One of the most frequent topics discussed in our country is U.S. minimum wage and whether it should be raised or not. Minimum wage should be raised so that it can change the structure of our economy in a beneficial way. There are many debates discussing the pros and cons of raising minimum wage. There are many pros that out way the cons in why minimum wage in the United States should be raised. Throughout this paper I’m going to provide facts regarding why minimum wage should be raised.

Read More

The Pros And Cons Of Raising Minimum Wage

1442 Words | 6 Pages

The problem with increasing the minimum wage is that people who have a job will be benefited, but certain people, like college graduate students who are planning to get their first jobs will face consequences, and it will make it more expensive for business to hire younger people and low-skill workers. The younger generation will be the ones who face more trouble, as opportunities will be snatched away from them. Therefore increasing the minimum wage will not lift the

Read More

Minimum Wage Sociology

1153 Words | 5 Pages

(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

Read More

Persuasive Essay On Minimum Wage

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.

Read More

Should Minimum Wage Be Abolished Essay

1029 Words | 5 Pages

“A review of 64 studies on minimum wage increases found no discernable effect on employment. Additionally, more than 600 economists, seven of them Nobel Prize winners in economics, have signed onto a letter in support of raising the minimum wage to $10.10 by 2016.” (U.S. Department of Labor) In any basic high school economics class, one learns that any extra money given via minimum wage would be put back into the economy. For example, if a single mother is barley making enough to pay for her kids to be clothed and fed, the extra money may go to things that are or aren’t necessities.

Read More

Essay On Increase In Minimum Wage

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

Read More

More about Pros And Cons Of Raising Minimum Wage

Related Topics

Open Document