ipl-logo

Pros And Cons Of Raising Minimum Wage

747 Words3 Pages

Discussion surrounding raising the minimum wage in the United States has been an ever-increasing talked about subject. Various arguments have been presented on either sides of the spectrum. With that being said, I believe that raising the minimum wage would have more negative effects on our economy than positive ones.
As you may know, Former President Barack Obama was a supporter of increasing the minimum wage, once stating that “no one who works full time should have to live in poverty.” Although I mostly agree with this statement, it does not simply mean that raising the minimum wage would solve the problem. If you take into account the hard facts surrounding minimum wage such as the what effect it will have on the economy, you will see …show more content…

Raising minimum wage would, in theory, reduce spending in regards to government welfare. If low-earning workers could earn more money, they would rely on the government less. This might be true, but I don’t think it outweighs the fact that business’s might have to shut down.
Another con of raising minimum wage would be that it would also increase the price of consumer goods. This is a domino effect. If you increase an employee’s wage, the product that employee produces will either need to be sold for more or be made with less labor/resources to make up for the minimum wage increase. There have even been studies to model this as it would likely happen. NBC news reported that the cost of coffee increased as much as 20% in Oakland, California, as a result of increased minimum wage by 36%.
But, once again, there is counterpoint to this argument. It is true that the minimum wage has not accurately kept up with inflation in itself. Since the minimum wage is not measurable for inflation, the number of goods that can be bought with a single unit or currency has gone down largely. In 1968, minimum wage was $1.60. Today’s equivalent of that wage would be about $11.15 as of January 2016. That’s over 50% higher than the current minimum wage. In theory, raising the minimum wage and measuring it accordingly to inflation would ensure low-wage workers could still make a

Show More
Related

Why We Should Raise Minimum Wage

807 Words | 4 Pages

A pro of raising minimum wage could be that their would be reduced government welfare spending meaning more money for important things like our army. We would be able to build more schools and get everyone an education with all the extra money. With reduced government spending we would be able to put more money into food stamps so that less rich people would be able to supply more food to the house. Government welfare supplies things such as medicaid meaning

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

The Pros And Cons Of Federal Minimum Wage

1913 Words | 8 Pages

The current federal minimum wage is set at seven dollars and twenty-five cents. Many workers across the country are complaining that the purchasing power of the minimum wage is currently low, meaning one cannot buy as much while living off of the minimum wage. Moreover, citizens are work full time, while earning the minimum wage, are living, on average, several thousand dollars below the poverty line. However, an increase in the federal minimum wage may do more harm than good. It is likely that an immediate increase in the federal minimum wage will lead to an increase in high school drop outs, a large cut in the workforce, mass amounts of inflation, as well as a large amount of jobs being outsourced.

Read More

Should The Minimum Wage Be Increased?

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

Read More

The Pros And Cons Of Raising Minimum Wage

2044 Words | 9 Pages

Raising the minimum wage will put people who do not have the best qualities, people who did not further their education the best they could, out of a job. Only the best are going to be hired with having to pay each employee more money (Weiner, 2014). Even though there are people out there who are not as educated as others, it is not fair that they cannot get a job because of that. Just because someone is more educated than another person, does not mean that they are a better worker. Being a great worker and learning the position that they are suppose to learn, will also help educate them and in the end, it is a win-win.

Read More

Pros And Cons Of Raising The Minimum Wage

706 Words | 3 Pages

Various people are for the raising this minimum wage. Raising the federal minimum wage would have many more negative effects than positive effects on America and society as a whole.. Increasing the federal minimum wage would have many more drastic downfalls than positive outcomes on America. One negative effect this would have on society is the demise of small businesses. For instance, small businesses would have to lay off many workers.

Read More

Minimum Wage Good Enough

598 Words | 3 Pages

The minimum wage is especially difficult on small businesses, and there is no evidence that it reduces poverty. (Federal Minimum Wage 1) Finally, if we raise minimum raise it will make the economy better because people will have more money to spend. When people have more money they will buy more products for business. When people buy more things other companies will make more money and that helps them.

Read More

Federal Minimum Wage Essay

435 Words | 2 Pages

I agree that the United States federal minimum wage should be increased to reduce labor turnover, increase consumer activity, and decrease poverty and crime rates. Increasing the federal minimum wage would increase consumer goods activities due to increased pay. According to the U.S. Bank, at

Read More

Essay On Federal Minimum Wage

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.

Read More

Increased Minimum Wage Essay

1258 Words | 6 Pages

Samuelson and Nordhaus, authors of the book, Economics, once said, “The minimum wage probably raises the income of some low-wage workers at the expense of others who cannot find work.” While a raise in the minimum wage may come with good intentions, the effect could be detrimental to society. A raise in minimum wage is problematic because it would cause a loss of jobs, higher prices for lower quality goods, and less business. Overall, these effects would lead to the poor being even poorer.

Read More

Raising Minimum Wage Essay

806 Words | 4 Pages

A minimum wage increase would mean a decrease in the well-being of our citizens. Our well-being would be affected because raising the minimum wage would result in issues for businesses. It would also increase unemployment and affect the upward mobility of the working class. While people will be thinking that raising the minimum wage is great, it is actually catastrophic for the country. Raising the minimum wage will result in issues for the business owners of America.

Read More

Essay On Minimum Wage Crisis

1089 Words | 5 Pages

Raising minimum wage would increase tax rates, which means poverty levels rise and high rates of unemployment do to the fact businesses will lose money. To Start off, You might need to read about the history behind the problem. Before minimum wage in 1929-1930 those years were known as the depression years people were losing jobs and poverty was a big issue.

Read More

Persuasive Essay On Minimum Wage

542 Words | 3 Pages

A higher minimum wage will help consumer spending power to recover and once again power our nation's economic growth. A hefty minimum wage hike is an important first step in achieving a sustainable economic recovery. In our current economic climate.

Read More

Persuasive Essay On Minimum Wage

645 Words | 3 Pages

If the minimum wage was increased, all of peoples hard work would pay off. People would be able to make ends meet. People could quit their multiple jobs and spend more time with their families. When that happens, communities are improved. Raising the minimum wage means millions of extra dollars in peoples pockets.

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