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Raising Minimum Wage Essay

628 Words3 Pages

Raising the minimum wage can be both a good thing and bad thing for Canada but it may not be necessary according to the statistics. According to the Toronto Sun, the vast majority of minimum wage workers aren’t poor. The main reason why government implement price floors on wages is because they believe the free market will not adjust for externalities. With over 65% of the workers as non-primary breadwinners, the minimum wage rise may not be required. 85% of the workers do not live in low-income households (Statistics Canada) and a vast majority are young workers living with relatives. As a result, rent and support does not seem that huge of an issue. Furthermore, raising the minimum wage will create a deadweight loss on the labor market. As …show more content…

For the employees on the other side of the statistics, there are many other alternatives to assist in paying their bills. One way is to provide a larger tax-break. However, most workers need the money week-to-week, not just at tax return time in April. Another tactic businesses will do it push the cost over to consumers. That though, will lower the demand and possibly create cyclical unemployment in the economy. Another possible policy the government can implement is a increase in tax credit. In Ontario, you can claim a tax credit on rent paid. An increase in this will mean that it will be easier for employees to pay their rent and take the stress off Canadian workers. For families with children, an increase on the Canadian Child Benefit (CCB) will help families recoup some of the costs of extra-curriculars and programs. A popular strategy would also be to steal from the rich and give to the poor. The government can easily provide a “wage subsidy.” For every hour worked, an additional subsidy can be given to the workers. That way, it is almost like raising the minimum wage but without the deadweight

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Raise Minimum Wage Raising minimum wage has always had a debate amongst people. There has always been a controversy of doing so has or not, how ever there is always some advantages and disadvantages in such topics as such. According to some studies from 2013, research shows that raising minimum wage could in fact increase job growth and activity. This research was based on the wages of $7.25ph increasing to $10.10ph and if it was done so, it would point 22.1 billion dollars net into economy and produce 85,000 if not more jobs in a period of 3 years. Studies also show that raising minimum wage would reduce poverty, a $10.10 minimum wage could save up to 900,000 people out of poverty (Congressional Budget Office).

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Many people are afraid that by raising the minimum wage it will hurt the poor, reduce other job benefits, and reduce competition. A 1997 National Bureau of Economic Research study estimated that the federal minimum-wage hike of 1996 and 1997 actually increased the number of poor families by 4.5 percent (Henderson). Employers respond to forced higher wages by adjusting other components of employee compensation, such as health insurance or other benefits. Although few minimum wage workers have employer-provided health insurance, employers have found other ways to adjust, such as cutting on-the-job training (Henderson). Gov. Schwarzenegger’s proposed a 15 percent increase in the state minimum wage would destroy about 35,000 to 70,000 unskilled jobs-putting 1.5 to 3 percent of young Californians out of work.

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People with government care would also no longer qualify because of their profit. Increasing the minimum wage would not have any good effects but instead have more negative because all the sales will increase as

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Although a minority of workers will experience pay raise or may even be brought out of poverty, the majority of workers would face unemployment and, if not that, would only be allowed to work for a short period of time in order for their bosses to compensate for the raise in mandatory pay. Also, some economists dispute that raising the minimum wage will have little to no effect on poverty rates altogether. For these reasons, I do not believe the minimum wage should be

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The federal minimum wage should be increased because it would decrease poverty rates, stimulate the economy, and inflation has surpassed current wages. A raise in the federal minimum wage would help pull millions of Americans out of poverty. Currently, there are over forty-three million Americans who live beneath the poverty line (“Should We Raise”). Of those in poverty, many are trying to support themselves, as well as their families, while living off of a minimum wage job.

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At first glance, raising the current minimum wage seems like an outstanding idea and one may think, “Hey, it’s not hurting anyone.” In reality these good intentions will result in many unintended consequences such as causing businesses to hire fewer workers, it has no effect on reducing poverty and will decrease employment. A common misconception referring to minimum wage in the United States is that the current minimum wage is not enough to make a living and support a family. The majority of minimum wage workers are between the ages of 16 and 24 years old.

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“Raising starting wages to $15 could price americans out of work” (Sherk). We need the unemployment rate to stay down, and pricing americans out of work is not going to help. Especially the people who are struggling. If the people who are struggling are getting put out of work their going to become homeless along with a whole bunch of other people. Some people are still making more than minimum wage, depending on the job like being a personal trainer etc.

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Raising the minimum wage would profit so many employes, decrease the poverty level, decrease debt, and help families live

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Raising the minimum wage

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By increasing the minimum wage, you are taking money away from CEO’s and giving them to the poor. This allows for the minimum wage workers to have a better life style. According to data from The New York Times before the increase in minimum wage the average unskilled worker earned approximately 15,268 dollars a year before taxes. Now the minimum wage salary per year before taxes is 20,000 dollars. The extra money will allow for poor workers to purchase better homes and improve living

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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.

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While some economists argue that increasing minimum wage is good for Canadian economy, others believe that this huge percent of differenece will cause inflation, increase unemployment and labour costs (Rozworski, 2017). However, if employees with minimum wage can save their jobs they can spend more on household the Real GDP will increase and it has a positive impact on economy. However some employees will loose their jobs because of the increase in minimum wage, many other workers will meet the higher wage and they can improve their living. Increasing minimum wage, results in raise of demand for goods.

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Naturally the rise in the price for living shouldn't be a problem but when the minimum wages don't rise many people suffer. Minimum wages should be raised because it will save the government money, help lower income citizens eliminate poverty, and workers aren’t getting paid their worth. How would you survive if you didn't make enough money to live? A study by the Center for American Progress found that raising the minimum wage to $10.10 would help 3.5 million Americans get off food stamps (Rachel West and Michael Reich, 2014).

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However, in the long run, many employers will not be able to maintain to stay in business due to the significantly high wages. An increase in minimum wage would cause millions to lose their jobs and put them further in poverty. It would even make it harder for them to obtain jobs after the increase due to the increase of competition in the job market, and most importantly an increase in minimum wage would cause increase in the price level and it will reduce significantly consumption due to the lack of purchasing power that is cause by the higher inflation rate. The minimum wage should not increase because it is unsustainable economically. Another approach of help guide people out of poverty can be a push for an increase in education and knowledge capital instead of continuously increasing the minimum

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