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Raising Minimum Wage Increase In The United States

752 Words4 Pages

Many people, form state legislators to various interest groups, in the United States are advocating increasing the minimum wage. There are several reasons for this, including the thought of it boosting the economy out of recession. Some other reasons are that it will improve the standard of living, boost consumer buying power, and provide a more stable and productive workforce. While these reasons are good in theory, raising minimum wage can be detrimental to small businesses and the economy. While earning more money is a positive thing, the negative of job losses are bigger. By raising minimum wage, there could be substantial job losses for young workers. According to Opposing Viewpoints, "A 10 percent increase in the minimum wage reduces employment of young workers by 1 percent to 2 percent” (Raising the Minimum Wage Will Not Reduce Poverty, David Henderson). In 2007, Governor Arnold Schwarzenegger wanted to raise the state minimum wage from its current $6.75 an hour to $7.75. Governor Schwarzenegger 's suggested 15 percent increase in the state minimum wage would destroy about 35,000 to 70,000 unskilled jobs. The 15 percent increase would end up placing 1.5 to 3 percent of young Californians out of work. According to David Henderson of Opposing Viewpoints, “[a] 15 percent increase in the minimum wage nationwide would …show more content…

According to Michael Reich, a professor of economics at the University of California, Berkeley, “[I]t would be disingenuous to suggest that the potential costs of raising the minimum [wage] could never outweigh the economic benefits. ‘We don’t know at what point that kicks in,’ he said. ‘We know that hasn’t happened at 50 percent or 55 percent.’” (Noam Scheiber, What a $15 Minimum Wage Would Mean for Your City) If the current national minimum wage is $7.25 and it is raised to $15.00 that would be a nearly 107 percent increase in minimum

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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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THE MINIMUM WAGE SHOULD NOT BE RAISE. Many believe that raising the minimum wage would benefit the lower socio-economic class or that it would boost the economy but it would in fact do the opposite. By raising the minimum wage it makes it more expensive to hire workers, in order to hire more workers a business owner has to either reduce individual worker hours, increase product prices or take money from himself in order to cover for the cost of labor.

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The federal minimum wage should be increased because raising it would increase the economic activity and spur job growth, decrease poverty, and also improvements in productivity and economic growth have outpaced increases in the minimum wage. Increases in job growth and economic activity will happen when the minimum wage is elevated. If the minimum wage was increased it will “inject 22.1 billion net into the economy and create about 85,000 new jobs over a three year period”. (“Raising the Federal minimum Wage to $10.10 Would Lift Wages for Millions and Provide a Modest Economic Boost") Thousands of new jobs will be created and it will put billions of dollars into the economy.

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Raising the minimum wage to $10.25 an hour is a touchy subject with virtually all individuals; fortunately, understand both the pro and con arguments is easy. Simply looking at it from an employee’s perspective, an increase is needed; trying to survive on only a 40 hour per week, minimum wage job would be near impossible. This yearly average is 8% below the 2015 federal poverty level for a single-parent family with a child (ProCon. Org). Looking at it from a business perspective, especially small businesses, some believe it could force a number of companies to close, due to the strain of the extra payroll; while driving other companies to lay off workers, cutback on hours, or not hire new employees in the future.

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Some studies have shown that raising the minimum wage would cause many owners to lay off some workers because the would put the working employees to work harder. This would cause many people to get laid off by their jobs and cause unemployment to skyrocket. “For one thing, the push for a national minimum wage of $15 an hour would actually cost employers $18.61 an hour, thanks to payroll taxes, unemployment insurance and ObamaCare taxes. The proposed increase, if passed into law, would, according to Heritage, impact one-third of all American workers, and hurt the most those working in lower-cost states”(Adelman 1). If we were to increase minimum wage unemployment would increase dramatically because many people would get laid off.

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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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Is it a dream to make more of a minimum hourly wage? Or is it considered a nightmare? California legislators and Governor Jerry Brown have decided to increase the minimum wage by fifteen dollars by the year of 2022. With an increase in the minimum wage, residents of California are worried that they would lose more than they will actually receive. The people of California are actually making good points as to why the minimum wage of fifteen dollars should not be instated.

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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.

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In the US there has been a movement to raise the federal minimum wage, which has been $7.25 per hour since 2009. A goal within this movement is to raise the federal minimum to $15 an hour. This would be a 107% increase over the $7.25 minimum wage. The question is if it is possible to expect that the minimum wage could be raised to $15 per hour without making a massive negative effect, to be more specific affecting the U.S. fast-food industry. The fast-food industry is a great discussion to look at.

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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.

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Introduction More numbers of state are joining to take action to raise the minimum wage to $15 per hour in a few years even though there is a high disputing controversial all over the nation. The federal has set the minimum wage level to $7.25 on Jan. 1, 2015. In less than a year the index number of the minimum wage is going up automatically with cost of living. And eventually it will be likely to increase year by year with automatic and expectation index.

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According to Don’t Raise Minimum Wage written by Sean McGarvey, by raising the minimum wage less jobs will become available to laborers causing an inflation in prices to buyers. If the wages increase large corporations such as McDonalds and Walmart will lay off the majority of their workers in order to pay for the other employees raise. The employees that get laid off are often the ones that are too young and inexperienced to better the company. This could prevent teens and less experienced laborers from getting jobs. These companies also could higher their prices on their products in order to pay for the raises for their employees.

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Since the Great Depression, there has been a minimum wage in America, but this minimum wage has changed 22 times since the Great Deprnbession. Many people say minimum wage should stay at $7.25 like it has been since 2009. Meanwhile, other people believe that minimum wage should be $15.00 so they can have more money to live comfortably. People think that a higher minimum wage will help, but it will hurt more people than it will help. If America makes the minimum wage $9.00, people will no longer be in poverty and it will make the economy balance out.

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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.

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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

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