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Should Minimum Wage Be Abolished Essay

776 Words4 Pages

As of July 24, 2009 the federal minimum wage is $7.25. The extensive period of time that has passed since minimum wage was last raised has caused an 8.1% loss of buying power due to inflation, making it insensibly low. On this salary, working full time an income of only $15,080 is produced. This is nearly $4,000 below the federal poverty line for a family of two and over 3.3 million workers are receiving this wage or lower, with an additional 17.3 million workers making $10.10 or less. The current rate is nowhere near enough to support oneself or a family. This forces individuals to rely on the support provided by government funded programs. These programs are costing $943 billion annually while not fixing the problem at hand, inevitably wasting …show more content…

Starting at $7.25, the minimum wage will increase by $0.95 at the beginning of each year. This will give businesses and employers that necessary time to plan for the additional expenses. Also, the minimum wage will be indexed, or adjusted automatically to keep up with inflation, every five years. Currently 15 states and the District of Columbia are indexing their minimum wage and this has proved to be effective for them. The custom of mandatory tipping will be abolished as it is in many countries, such as Australia and throughout Europe. Waiters will be able to provide for themselves with the new rate and therefore won’t need the tip. This will be managed by the United States Department of Labor (USDOL), as it is currently doing. Since less tax dollars will be going towards funding anti-poverty programs the saved money will be going to people’s wages. Also, there will be slight increases in the cost of goods or services, estimated to be around 1-4%. The consequences will remain the same as they currently are. As of now they have been valid but if they are ineffective once the bill is passed then there will be harder consequences put in

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The goal of the United States should be to get rid of poverty. That will never happen with such a low minimum wage. If we want people not to rely on public assistance, they must be able to earn enough to feed their

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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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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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Minimum wage should not be raised because it is not an income that someone sold live off of. Minimum wage in the country is currently $7.25 but some states have changed it in a way that is way too much. For example Washington state currently has the highest minimum wage at $9.32 that’s a $2.07 increase to the current amount minimum wage. Seattle is currently considering to raise their minimum wage to $15 it’s understandable that the city is very large and things cost more money but if they raise minimum wage to $15 that will only bring inflation causing things to cost only more money than it already does. If there is one thing that should not be done to the country it is to cause inflation.

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Today’s minimum of $7.25 an hour is worth 25 percent less than the minimum in the late 1960s. From research, a full-time, minimum-wage worker earns about $15,000 per year, which is below the federal poverty line for a worker with just one child. We need to raise the minimum wage to the point where the lowest-paid worker can afford their basic needs, such as food and other necessities. An increase to $10.00 an hour as proposed by President Barack Obama would actually reinstate the wage factor to the same value it had back in the 1960s. In doing so, it would lift earnings for nearly 28 million workers nationwide roughly 1 in 5 U.S. workers.

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However this is just an average with the smallest pay raise being 5 cents in October of 1939 and the largest being 70 cents in July of 2007, 2008, and 2009 (Bose, n.d.). The shortest time between pay raises was 10 months and the longest time was 10 years (Bose, n.d.). The last time the minimum wage was raised was in 2009 to what it is today at $7.25 (Bose, n.d.). After nearly 8 and a half years, some people believe that it is time for the minimum wage to be increased yet again, some even insisting that it be raised to $15 an hour. While this may seem like a good idea, the minimum wage should not be raised because only a small number of workers are paid minimum wage, it will lead to fewer jobs, and prices for goods and services will rise.

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This poses the question: “Is the current minimum wage a livable wage?” The answer, unfortunately, comes back negative. The current federal minimum wage, at $7.25, is worth nearly 38 percent less compared to 1968 when the federal minimum wage was valued at its highest ($11.72 in 2016 dollars). Given the facts, it is justifiable to raise the federal minimum wage as it would amount to a more livable wage, stimulate the economy, and provide better circumstances for workers of color and women.

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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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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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