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The Pros And Cons Of Increasing Minimum Wage

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This research will converse numerous opinions on minimum wages. It will also offer answers to questions like where did minimum wages get its start? Impact on increasing minimum wages, how it affects the companies, how do wage increase why were minimum wages created? Confer the benefits of providing minimum wages with benefits the workers, presenting the pros and cons. How are minimum wages benefiting the economy, do it help increase the economy? This dialog will have several diverse points of views based on the belief of diversity of authors. Presenting the difference of opinions doesn’t necessarily means there is/is not a tangible answer to whether maintain low wage benefits anyone. It will show some of the ways families who receive a wage increase continue to suffer. I. History of minimum wages (76C)(87B) Consequently, the origin of Minimum wage dates back as …show more content…

Families as a whole will argue the point that an increase in minimum wages will allow families the abilities to put more food on their tables, while providing the base necessities need in the family. However, most analyses of the minimum wage focus on its unintended employment consequences. (Freeman, 1996) Some major companies have agreed to increase the minimum wages in some States, nevertheless, the amount that the wages have been increased by is not enough to get a family from beneath poverty. Proven the fact that job markets in some cases are not working in the best interest of their employees. It has been noted that tax cuts and other government cuts can benefit the employees while putting money in the major company’s pocket. However, the worker who received an increase in their wages feel they are benefiting from the increase. Not taking into consideration the more they make, the more they will have to pay out. Receiving a pay increase also puts the employees into another tax

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Opponents also argued on how the increased wages for workers will decrease the workers’ incentives to receive better education. Since people who receive minimum wage are usually teens who just start out in the workforce, most of them earn money for personal wants rather than using it to support their whole family. Patton believe a minimum wage job “should never be the end game. Rather it should be a beginning step in the career path for those inclined to improve their circumstances”. The minimum wage will enable workers to start climbing up the ladder and gain more experience.

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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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Because the cost of living has welkin rocketed, it has become virtually infeasible to raise a family on a minimum wage job. A person living on his or her own cannot survive on minimum wage job either. Their living expense would just be exorbitant. The earnings of minimum wage workers are crucial to their families salubrity. Evidence from 2013 and 2014 minimum wage increase shows that an average minimum wage worker brings home more than a moiety of his or her family 's weekly earnings.

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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.

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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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Minimum wage’s use was always to provide a single male with enough resources to live in that age’s society. As the prices of our resources increased, minimum wage increased to accommodate these people. However now, the Ontario Provincial government has decided to raise the minimum wage to $15 per hour to help out single parents trying to make ends meet. This was the primary factor in raising the minimum wage and was a compelling argument that urged the Provincial Parliament to vote in favour of this raise. This decision has both its positives and negatives that must be discussed, this policy was created with good intentions, however, there are too many flaws in minimum wage that must be addressed.

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This academic report presents recommendations to effectively implement a minimum wage policy in contrast with its potential challenges. The policy is deemed to yield an increase in wages for low-income workers, hence steering the economy

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In today’s society, it seems imperative to have an ensured income in order for members of a society to take care of those that depend on them. While raising the minimum wage may be the most potent means to this end, it is also the solution that brings the most long term problems. However, this has not stopped the policy from being tested in cities such as St. Louise and Seattle. While both had subtly different in both cities affects the broad end result: the policy was cancelled after a loss the employer’s money was apparent. These results prove that minimum wage would be inadvisable due to a loss to the workforce population, paradoxical effects, and the potential for a loss of money if an increased minimum wage is enforced.

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In the early 1970's the studies conducted were short and only goes back to 1954 unlike recent studies which could use double the observations made in the first (Card & Krueger, 1995). On the other hand, jobs that pay an almost the same amount as minimum wage plays an integral part in the United States labor force (Belman & Wolfson, 2014). Another recent finding showed that an increase in the federal minimum wage dramatically impacts on workers negatively (Card, 1992). Therefore, the current study demonstrates the pure truth that should drive into the decision on how the lowest wage rate is determined. The decision not only helps the government in concluding but also the business workers in their daily

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The Minimum Wage Struggle Money is an essential object to acquire in the society we live in. Various places demand a high monthly rate in order to occupy a premise, along with the stress of utility bills that may not be included. Aside from living costs there are many other factors which must be calculated when budgeting on a day to day basis. Overall, the survival rate tends to increase due to so many responsibilities that need to be upheld, as well as costs being raised. This rise in both the cost of living as well as the need for higher wages proves that the standard of minimum wage needs a major increase.

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Aspects of minimum wage increase The minimum wage is an economic definition which depends considerably in the relationship with means of production, this sets a given perspective. When means of productions are not possessed, that means being a worker, then minimum wage is the minimum quantity of money he needs to satisfy his basic needs; however, minimum wage for producers is the minimum quantity they are allowed to pay to their workers, even if that quantity can not even allow the workers to live a dignified life. Historically there have been major debates around minimum wage, which have been represented through academic, social and political conflicts. Most worker’s strikes are related to wage and have generated different temporal outcomes.

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Nowadays many economists debate on necessity of minimum wage and its influence on Economy. Economics doctrine shows, that minimum wage can bring positive as well as negative influence for economy development. Therefore the policy of minimum wage has as many arguments for as against. The role of State and Trade unions has a high impact level to determine the size of minimum wage and its existence in relationship between Employer and Employee.

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The impact of increases of the minimum wage on employment has been debated for decades and modern economists hold a different perspective to minimum wage increases which have always been said to have a negative employment effect. With the use of the Katz index, which is an economic indicator shown by the ratio of the nominal legal minimum wage to the average wage, this economic indicator may be used to determine whether the minimum wage is set too high or too low. If the minimum wage is set too low, employers may abuse their bargaining power in wage negotiations with lower skilled workers and pay them less than the marginal product of labour. Employers would be more inclined to hire more workers so that firms produce at optimal levels, although this may further increase inequality as profits may rise and are usually distributed among higher skilled workers. On the other hand, if minimum wages are too high, employment growth will be cut back as the neoclassical supply and demand curve illustrates above, holding other variables constant.

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704 Words | 3 Pages

In the past three years, many politicians and labor unions have been pushing for an increase in minimum wage. Minimum wage is the lowest set wage by a law of a government body. An increase in minimum will benefit some people, and hurt others. An increase in minimum wage will cause benefit in the short run but will be very damaging to the economy in the long run. There should not be an increase in minimum wage because it is unhealthy to the economy in the long run and it will be the major cause of job loss, increase in inflation, competition, and the price level of goods and services.

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1564 Words | 7 Pages

The wage was set irrespectively of the will of the employers taking in consideration the needs of the labours to live a decent life. The labour with less productivity than the mandated wage was forced to find work in the industry that does not comes under the federal court order. The data show that for the rest of the decades, the unemployment rate was increased and it still remained problems for unskilled workers (Goodwin & Maconachie,

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