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Raising Minimum Wage Essay

1081 Words5 Pages

Raising minimum wage is an inadequate decision based on possible ramifications that could occur. Minimum wage workers as well as teens beginning to enter the work field are directly affected by this decision. What people may not notice is these low- income occupations are not meant to be lifelong employers. They are meant to be more of a starting point in the work field. Many jobs today can potentially result in mental and physical stress placed on an individual. Therefore, some may assume one should be paid extra for the stress exerted on the job. Yet, if salaries for minimum wage workers were increased, this would likely slow the economy and increase the unemployment rate. Many people just look at the icing on the cake, and forget to look at what kind of cake it is. Before making a decision based on what is thought to be the initial outcome, think about what other problems that can occur. …show more content…

As these so called "benefits" are implemented, issues could surface leaving employers as well as employees in a bind. By raising minimum wage, the extra money has to come from somewhere. As seen lately, there have been many budget cuts to many different braches of business. Therefore, evidently, the extra money for these raises will be forced to come from within the business itself, but how will they have the ability to raise their wages without losing income? The prices of products sold at that business will increase in direct effect to the consumers, to allow their income not to decrease or diminish. In addition, possible ramifications to raising minimum wage could be prices of products sold at a given business will have to increase to allocate the extra money being given to employees, in result small businesses could lose their business, and unemployment rates will increase due to the fact that some businesses cannot afford to pay the same amount of employees as before on this

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Minimum wage would raise the wages of many workers and increment benefits what disadvantaged workers. An estimated 6.9 million workers would receive an incrementation in their hourly wage if the minimum rage were raised to $10.15 by 2015. Due to the spill over effect the 10.5 million workers earning up to a dollar above minimum wage would withal be liable to benefit from an incrementation. Women are the most astronomically immense group of beneficiaries from a minimum wage increase. Sixty percent of workers who would benefit from an incrementation are women.

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If minimum wage is increased the more money the typical american will have on spending money and they will have more money to put into businesses across the country. In a study performed in 2011 by Chicago Federal Reserve Bank it showed that every dollar added to a person 's minimum wage they spent $2800 more in additional consumer spending. Workers who earn more than minimum wage will also see increases in their salaries. This is because minimum wage is seen as the base number from which their wages are calculated so if the base number is raised their salaries will be arranged.

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Since the election and reelection of President Barack Obama the increase in minimum wage has been a major topic for the United States. His proposal to increase minimum wage has sparked a lot of controversy with some Americans. Many believing that increasing minimum wage will have a negative impact on our economy and even our educational system. They argue that increasing minimum wages will harm the very people it was intended to help because it will increase housing cost as well as the price of consumer goods. They argue that it will decrease the high school enrollment rates at the same time increase dropout rates.

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Don’t Raise the Minimum Wage: If we were to raise the federal minimum wage we would experience an assortment of problems afterward. We would see obstacles such as people staying at the minimum for the rest of their lives, elimination of the amount of jobs that are at minimum wage, and it could have a slight economic inflation on business’s products. Imagine if you come home after work, heavy knowing you had to tell your family that you were laid off. You were all excited because there was going to be a higher wage, but in order to pay for all the other workers they had to cut from yours. With a higher minimum wage this could be a familiar occurrence.

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Many Americans view increasing minimum wage as an issue for countless reasons. Some politicians and businesspersons argue that raising the minimum wage will slow economic growth and cause inflations. With an increase in

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Some say a pay raise will distort the labor market by forcing employers to pay certain workers more than their work merits (“Federal Minimum”). Although people have concerns about the effects a pay raise would have on the economy, minimum wage workers still deserve to be paid enough to support their

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The opponents that are against on raising the minimum wage say that it would have a negative impact in the long-term according to The Economist. If we raise the minimum wages, it would cost the businesses more to pay for the wages. They say that raising the minimum wage would only make the value slowly go down because of inflation. Low-paid workers could lose their jobs if the businesses raised the minimum wage. According to Drew Desilver from The Pew Research Center, the Congressional Budget Office projects are raising the minimum wage from seven dollars and twenty five cents to ten dollars and ten cents by 2016, it would raise incomes for about 16.5 million low-wage workers but would put five hundred thousand workers there jobs.

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In every good there’s bad and in every bad there’s good. Everyone thinks that increasing or keeping the same minimum wage could either make the economy better or worse. Supporters that want an increase in the minimum wage claim that the wage increase is a way to fight poverty. They don’t know that when raising the minimum wage, it will cause inflation and increase unemployment. Increasing the minimum wage by a dollar is a bad idea.

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The main issue with raising the minimum wage is, it actually has very little effect on reducing poverty. This is because the majority of minimum wage workers are part-time, young, still in school, and because very few people earn minimum wage. With the minimum wage being intended to help people with minimum skills, its purpose was not to help a person raise a family of 4. Since the majority of minimum wage workers are teenagers, raising the minimum wage to reduce poverty would have very little effects since most below poverty level are not “head of household” workers (Fuller). Out of the 75.3 million workers that are paid hourly, only 4.7% were paid in minimum wage and of those minimum wage workers, 59.4% are between the ages of 16 and 24 (Patton).

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Small businesses will likely be shut down as a result of a minimum wage increase. A study conducted in a 2013 Gallop poll states that, “60% of small business owners say that raising the minimum wage will hurt most small-business owners”(“Should We Raise”). This change will create many problems for the employers.

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The minimum wage has been changing and debated over since it was established in 1938. Many argue that minimum wage should be increased to compensate for rising inflation. Some activists also argue that one cannot make a living off minimum wage alone. Others claim that if the the minimum wage is increased, then corporations and other business will respond to their increase in expenses by laying off employees, and turning to technological advancements to replace the unskilled labor. There are many causes and effects of increasing the minimum wage that delve into the advantages and disadvantages it has on society (“Minimum Wage,” 2015).

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The benefits of raising minimum wage are substantial according to the resources. The employee benefits by being properly compensated for their services. The employer will benefit by receiving a more stable work ethic from the employee along with a high production rate. The government will be benefit by reducing the deficit by putting less tax dollars into the government funded assistance programs utilized mostly by those who are unemployed or making minimum wage. An increase in the Federal minimum wage will do far more good to our economy than

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This is why I think that raising the minimum wage is a bad thing. To start off with raising the minimum wage will hurt businesses. A study done by the Congressional Budget Office shows, “A minimum wage increase from $7.25 to $10.10 would result in a loss of 500,000 jobs.” A statement said by Jamie Richardson, MBA, and Vice President of the fast food chain White Castle said, “The company would be forced to close almost half its stores and let go thousands of workers if the federal minimum wage were raised to $15.” Both these studies show that increasing the minimum wage would decrease the amount of jobs that there are for people everywhere.

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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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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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