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Raising Minimum Wage Essay

806 Words4 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.
According to Caron Beesley, about 70% of businesses in the U.S. are sole proprietorships. These are the businesses that run our economy and they are the ones that would be affected most by a minimum wage raise. A poll by Gallup in 2013 went to small businesses and 60% of the owners …show more content…

Employers would bring machines into do the work that people could do because machines would be cheaper than paying an employee. They also eliminate the chance of someone being hurt during a dangerous job and they increase productivity. An example of this would be at places like Mcdonald's. They are starting to replace cashiers with a machine that you can order yourself so there isn’t error. If a company does not resort to robots they have alternative options. Companies would start to outsource their jobs to other countries in look for cheaper work. This would increase unemployment rates. An example would be stores like Walmart. They receive most of their products from China because it's much cheaper than having U.S. citizens make them so when they have to start paying them even more, Walmart will start outsourcing even more. Due to the unemployment rates increasing crimes such as theft and drug sales would increase. According to “Minimum Wage and Crime” a minimum wage increase would increase crime by 1.9% in young adults. While the wage raise increases unemployment, it decreases our inspiration to do better

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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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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

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Admittedly, if wages were to increase, smaller businesses may not be able to afford as many employees. This could result in businesses hiring less people and laying off other. If this happens, then there will be more unemployed Americans who fall beneath the poverty line (“Should the Federal”). However, with an increased minimum wage there would be more people who have a higher income than people who are unemployed. In fact, according to a study by Alan Krueger and David Card, there was “no indication that the rise on minimum wage reduced employment” (“Should the Federal”).

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Raising minimum wage in the United States would benefit over twenty eight million workers. Raising minimum wage would help businesses and would also give workers with minimum wage salaries more money then just enough to get by. The money these workers earn will go into businesses in and near their communities. Also the cost of living wages have increased throughout the years. With a minimum wage salary you have to work a forty hour work week without paying more than thirty percent of their income.

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Some ask if it should exist at all. And, the biggest question of all, how does the minimum wage affect the profitability of a business? Increasing the minimum wage causes many issues regarding the economy and the business industry. Increasing the minimum wage would force businesses to lay off employees and raise unemployment levels. The Congressional Budget Office projected that a minimum wage increase from $7.25 to $10.10 would result in a loss of 500,000 jobs.

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This means more and more people are ending up on the street. With a raise in minimum wage people will be able to support themselves financially, and feed their families. A raise in the minimum wage will also stimulate the economy causing an

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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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So is it worth raising the minimum wage to $10 or even $9 so that we could bring so many more people out of poverty or is it too much of a risk for the smaller businesses? Increasing the national minimum wage would also raise the prices of consumer goods. In order for businesses to make enough revenue to stay in business while paying their employees $15 an hour they would need to significantly raise the prices on things we purchase every day. This could mean buying the store brand detergent instead of the name brand that you have always used. Raising the minimum wage could also make our society healthier by making more food accessible.

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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.

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Many argue companies wouldn’t be able to keep the same amount if workers, and half a million jobs would be lost (Minimum wage). This is not true, the extra money in customers hands would raise the economy enough to cancel out the extra costs, and actually create more jobs. Jobs might initially be lost, but in the long run, they will recover with a vengeance. In the end, when people say raising the minimum wage would lose jobs, it is a temporary loss that will recover within a year or

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Raising minimum wage would hurt businesses and cause them to close. It could also be argued that raising minimum wage would bring the prices of items up. Nevertheless, the benefits that come out of raising minimum wage outweigh these reasons. Elevating the minimum wage will bring families out of poverty and provide a livable wage. According to America’s Unions, “Raising the federal minimum wage to $15 an hour by 2025 would raise wages of up to 27.3 million workers and lift 1.3 million families out of poverty” (It would also allow for people to be able to keep up with inflation and it would provide enough stability for the economy to grow.

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Another result of raising the minimum wage would be that other products’ price would increase. This may not affect your higher class, or your minimum wage workers. Although this will affect your middle class, because their wages will not increase while all of the other products will. These statistics are just one example of this, “If the minimum wage were increased to $15 an hour, prices at fast food restaurants would rise by an estimated 4.3 percent, according to a new study. That would mean a McDonald’s Big Mac, which currently goes for $3.99, would cost about 17 cents more, or $4.16”

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Lastly, we wouldn’t find a want or a need to farther our education or advance in our jobs because in our eyes we would be making enough money. Raising the minimum wage would seem like a great thing to do but it is essentially the worst thing that could be done. Raising the minimum wage will influence companies to start laying off employees because they will not want to start paying all their employees more than usual. They may find is necessary to either reduce their current staff or reduce their hours. Low paid workers could lose their job because employers would have to cope with the higher wage requirements.

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Jon Corzine once said, “No family gets rich from earning minimum wage. In fact the current minimum wage does not even lift a family out of poverty” (Brainy). Kids are struggling to get through college, parents are having trouble providing for their family all due to their low wage jobs. Teenagers are the most common individuals to get minimum wage jobs and with these people going to college, it is nearly impossible to save enough money. When thinking about raising the minimum wage, one has to realize the work shift change in hours.

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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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