Should The Minimum Wage Be Increased?
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.
In the book The Minimum Wage by Opposing Viewpoints they say that the minimum wage does hurt small businesses. In the book it says “A 10 percent increase in state minimum wages is consistently associated with a 1 percent reduction in retail employment and a 1 percent reduction in small business employment” (Viewpoints 72). Every time an increase occurs by 10 percent than in effect to that a 1 percent reduction in retail and small business employment. This shows that the minimum wage increases has a huge impact on the small businesses and also the retails. When the wage in increased then the small businesses can’t afford to employ all these new people.
Increasing the minimum wage only does positive growth because “...authors found little or no evidence of a negative association between minimum wages or employment”. ("How Does a Federal minimum Wage Hike Affect Aggregate Household Spending?”) Increasing the minimum wage will only cause positive growth in a topic of employment. Raising the
The increase in minimum wage would also increase the number of jobs moved to other countries where the wages are drastically lower than here in the US. These are just a few examples affecting
A writer from the American Legislative Exchange Council states, “Small businesses face a very competitive market and often push profits as low as the can to stay open” (RaisingThe 7). In a catastrophic scenario, such as a large increase in payroll, these businesses could be forced to close. Many small businesses face a very competitive market with large corporations, and an increase in minimum wage would decrease their profit, stifling their potential for growth. This growth of small business is essential to the economy, as they provide innovation and job opportunities. If the futures of small business are put in jeopardy, so is the escalation of these important job
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.
Throughout the years the United States’ economy has had to overcome many obstacles to get to where it is today, through good times and bad. One of the major topics that have been discussed for over the past decade is raising the federal minimum wage. This specific topic has been debated all up through presidential debates and congress meetings to where even voters are influencing their governor votes on rather if they will fight for raising the federal minimum wage or not. The desire to increase the federal minimum wage has been gaining momentum throughout the years “as a way to alleviate rising wage and income inequality”, especially within this past presidential debate between Hillary Clinton and Donald Trump (Neumark). Many states have already raised the minimum wage by their choice, but doing this to the rest of the country through law
Imagine there is a standard, a standard that all labor, service, and other unskilled sectors of employment adhere to. That standard is to only pay the minimum compensation for their employee’s time. Many people, in America, know this as minimum wage. Minimum wage is not sufficient for any person working full time, a 40-hour workweek, to have a large enough income that is considered a living wage or even an income that provides the standard of living. There are two economic principles that are relevant to this topic.
The minimum wage increase would raise a worker’s pay by $6,000 a year (Smith 11). If a company has five employees, they would have to make an additional $30,000 just to break even with the previous year. That is huge task to overcome for a small business. A federal minimum wage increase would have a very negative effect on the small businesses of this
Raising minimum wage will lead to minimum wage workers working less who will end up with no significant gain. One major setback in raising minimum wage is that minimum wage workers will work
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.
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.
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
There are many effects of raising minimum wage to the U.S. economy in both negative and positive ways. When minimum wage is increased, it is supposed to help improve the lives of the workers and their families since they will have more income. It is especially meant to help lower income families. This is great for those families, but the company and economy can suffer from this. When minimum wage increases, companies have to pay more to their workers.
Many people are with or against the raise of minimum wage, should the United States of America raise the minimum wage? Opponents say that raising the federal minimum wage would would increase the amount jobs created, and also increase economic activity. The economic institute states that increasing the current federal minimum wage of $7.25 to $10.10 would create approximately 85,000 jobs and add $22.1 billion net into the economy (David). Business analysts and financial experts from the Federal Reserve Bank of Chicago concluded that by increasing the federal minimum wage would also increase accumulated household spending by $48 billion through the year boosting job growth and boosting GDP, short for gross domestic product.
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