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Raising The Minimum Wage Essay

547 Words3 Pages

With the raise of the minimum wage, our employees would take one of the larger hits. The raise in the minimum wage would have a drastic affect on our everyday employees. If payroll is significantly increased, then to meet the bottom line, the employers must start hiring or even cut jobs. A recent study from economists at the London school of Economics and the central bank of Turkey found higher minimum wages increased unemployment. (Riggs) The larger amount of young workers would be affected the most by the increase of minimum wage. Businesses would have to limit their employees. When looking at who to hire, businesses will typically go with someone older and more experienced rather than a young adult or teenager. The bulk of the research on …show more content…

When looking at the effect raising the minimum wage would have on the economy is astonishing. The drastic effect the economy would take makes it seem like the obvious choice is to not raise the minimum wage. The Center of American Progress’s massive economic growth plan calls for setting the minimum at one half the average wage for production and non-supervisory workers. (Mendoza) Hanquer proposes raising the minimum wage to fifteen dollars is more than doubling the federal minimum. (Hanquer) It is never a good sign when the Major Changes There are few things we can do in today’s world without there being a change. When it comes to raising the minimum wage to $15, there are many major changes that will take place. The evidence we have on the effects of minimum wage increases are limited to a historical period where statutory minimum wages have ranged between 35% and 50% of the national median wage. The higher costs of production are, the higher prices are. The higher prices are, the smaller the quantities of goods and services demanded and the number of workers employed in producing them. A 2013 article by the Federal Reserve Bank of Chicago stated that if the minimum wage is increased, fast food restaurants would pass on almost 100% of their increased labor costs on to consumers and that other firms may do the same. This would mean that nothing would actually change. As soon as the minimum wage

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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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The American Action Forum believes that raising the minimum wage can do more harm than good and hurt the people it’s supposed to help. Job loss in the millions would happen if the wage was raised from $7.25 to $15. People in poverty before the increase would have trouble finding jobs because companies would have to have less positions to counter the wage raise. Komlos, John. " Column: Why Raising the Minimum Wage Is Good Economics."

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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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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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1173 Words | 5 Pages

Employers will have to pay more for each employee. Therefore, to make sure that they are not constantly losing money, employers will simply not hire as many people to work in these minimum wage jobs. Many people have said that because of this massive rate of increase in minimum wage, corporations will have to get rid of 20% of their workers if they want to spend the same amount of money on employees in comparison to past years. Another large problem that occurs from the effects of this increase is that less people have the chance to earn more money once they move on from a minimum wage job. Even if there was no minimum wage increase, most workers would end up making 40.8% more than their minimum wage salary, as they gain work experience.

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They would most likely lay off the younger and inexperienced employees. Nevertheless, there would most likely be less hiring done as well. Prices for certain goods may increase in order for employers to make the necessary profit to sustain their business. Ultimately, the rise of the minimum wage may result in the rise of the price of living, which would eventually lead to another push to increase the minimum wage.

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105 Words | 1 Pages

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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575 Words | 3 Pages

Raising minimum wage should no longer be pondered, but rather implemented immediately. The idea of the minimum waged being raised to $15/hour has caught the hopeful eye of millions of people across the nation. By minimum wage being raised, benefits from raising the standard of living for people to the economy being boosted will affect Americans positively. Minimum wage jobs are not just for the youth, as some believe. This measly rate as it stands currently, has to provide for entire families in some cases, not just teens who are earning extra funds.

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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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1504 Words | 7 Pages

Also, it might take time for employers of many low-skill workers to learn how to economize on their labor costs. They will over time since the incentives to do so are much larger and that would be bad news for the very low skill workers the higher minimum wage is designed to help. Whenever increasing the minimum wage is discussed, there is always a concern that doing so might hurt job growth or imperil businesses that employ low-wage workers business they have to pay their works more and that could be hard for some business or companies. The effect of increasing the minimum wage on employment is probably the most studied topic in labor economics because the government has to worry about inflation and prices going up and also the consensus of the literature is that moderate increases in the minimum wage have little to no effect on employment.

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If we raise the minimum wage jobs will be lost which would lead to a lower overall quality of life for disadvantaged people. (Freeman, 1996) We Do Need a Minimum Wage Although there does need to be some type of minimum wage at the federal level to ensure employees get paid something, it cannot be as high as $15 dollars an hour. If the actual minimum wage (also called the nominal minimum wage) is at or below

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874 Words | 4 Pages

When a higher minimum wage is enacted the effects will be different for companies, industries and the labor market in general and we will also have different effects on the employment market. The main effect and impact will be for low paid jobs particularly in industries like food, restaurants and retail. This topic is very controversial and has supporters and deniers on both sides of the political and the economical world. I support the increase in minimum wage and I believe it should be linked to the inflation and the living wage.

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505 Words | 3 Pages

Now one can easily argue that increasing minimum wage can increase product cost. However, benefit of increasing minimum wage is far greater than that. We all know that middle class people spend most of their money for consumption. Therefore, if we give them more money than they will spend more as well. Furthermore, companies will make more profit and they will expand.

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1109 Words | 5 Pages

J.B Maverick states that “for some unfortunate people it can also cause Job loss and a more competitive job market”. Companies are always looking for ways to save money, and if they are forced to give employees raises it will cause companies to fire employees that aren’t deemed necessary enough for the pay they would be getting. According to the congressional budget office, Some people could be heavily affected by the wage increase and stay unemployed permanently while others might come and go making a higher wage than they use to while they work. Raising the minimum wage will also cause a more competitive job market as people will be trying to get new jobs or are reinspired to get jobs after leaving the

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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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