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Pros And Cons Of Raising Minimum Wage

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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

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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

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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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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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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.

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