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The Negative Effects Of Minimum Wage

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What if your family was in danger of being broke and homeless would you want to know the full impact that minimum wage has on your life to keep your economic floor stable for your family? Minimum wage has much effects on the average person's mental and physical life as well as spending habits due to the situation the person is in. Minimum wage or income will also influence the tax amount that you will pay that year along with how the recent tax laws are creating fair play between businesses and workers. The minimum wage topic is important to all americans ,and most base their knowledge and opinions off of the background of minimum wage and how it impacts people, the pros and cons about minimum wage, and how minimum wage relates and impacts …show more content…

The productivity growth of the United States since the late seventies has not influenced the majority of workers (Howell). Minimum wage in America has collapsed from the year nineteen-sixtyeight to nineteen-eighty-nine by a dollar fifty six. We have recently had the longest period in time without a raise in the minimum wage between the years of 1997 to 2007(“The”). The higher wages the minimum wage can provide can increase consumer purchasing, raising productivity, improving product quality, and improving company reputation. All of these reasons contribute to the improvement of the economy. “The economy is in its worst crisis than it has been since the great depression” (“The”). Minimum wage has not been what it was made to be in the past years according to many sources ,and the effect that it is having on our modern economy is acceptable. If the minimum wage was to increase more than eight percent of louisiana's workers would be affected in a positive way. The numbers are the same in many other states as well. The numbers state that increasing the minimum wage will allow America to pull out of the recession that we are held within. The committees of New York and California concluded that a fifteen dollar minimum wage is estimated to increase the income of minimum wage workers by one third percent in each state. Many large business owners say that this will greatly impact the productivity and growth of their companie in a positive way. They say that there will be more income coming in along with quality consumer products going out at a much faster rate than ever before. The scattered opinions on minimum wage are far and near ,but they can not argue with the future and prospering of the average worker along with the

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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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Does minimum wage really help our societies? In an episode of “30 Days”, the article “Serving in Florida”, and another article “Economists argue about minimum wages” these authors take different positions on their opinions of minimum wage. The argument of minimum wage has been a big conflict for years. Government leaders, celebrities, rich, poor, and anyone in between has stated their opinion on whether minimum wage is a good thing or a bad thing. These authors are just a few to begin with.

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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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The orthodox approach that considers the increase in minimum wage will reduce the employment is not supported by any strong proof. A research study conducted by Card and Kreuger in California and New Jersey highlighted that in the year 1988 and 1992 when the minimum wages were increased no unemployment affect was witnessed by the economists. Economists have suggested that the increase in minimum wage makes the life of the people better and it does not cause unemployment. Research identifies that the market dynamics cannot be well explained using the supply and demand rules. There are businesses that enjoy a lot of power and they often pay the workers less than their worth.

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The minimum wage is currently a hotly debated policy area, and is frequently talked about on the news and in political spheres. Part of the reason why this debate gets so heated is that, according to Antony Davies, a Senior Affiliated Scholar with the Mercatus Center at George Mason University and associate professor of economics at Duquesne University, both those arguing in favor and against the minimum wage are trying to help the poor, and therefore assume that anyone disagreeing with them are trying to harm the poor. It is for these reasons that in articles and research papers Davies uses reason and empirical arguments to apply economic theory to the minimum wage debate. The minimum wage debate is centered around whether employers should be forced to pay all employees a minimum hourly rate for their time, and whether this rate should be raised to the level of a “living wage”. Although the term “living wage” is not clearly defined by advocates, it is loosely a wage sufficient to satisfy one’s basic needs including housing, education, food, and healthcare.

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“How does minimum wage affect a society” Minimum wage has been a topic of debate for many years. Some argue that it should be increased to help workers earn a living wage, while others believe that it will raise prices for consumers. With the cost of living increasing, many people are struggling to make ends meet on today's minimum wage. In this essay, I will provide information about the history of minimum wage, its current state, the implications of minimum wage policies, and their impact on society. Andrew Carnegie co-founded his first steel company in the early 1870s in the Pittsburgh area.

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Introduction Minimum wage is a touchy subject for many people. There are people who want to make $15 an hour working at McDonald’s flipping hamburgers, but they don’t think about how every day prices at the store would increase to compensate for a higher minimum wage. I have chosen the history and effect of the minimum wage because I’m interested to see how minimum wage was back in the day, how the minimum wage has influenced every day prices, and why the minimum wage keeps increasing. 1 Past minimum wage Minimum wage has increases significantly and doubling within the last 27 years.

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In the early 1970's the studies conducted were short and only goes back to 1954 unlike recent studies which could use double the observations made in the first (Card & Krueger, 1995). On the other hand, jobs that pay an almost the same amount as minimum wage plays an integral part in the United States labor force (Belman & Wolfson, 2014). Another recent finding showed that an increase in the federal minimum wage dramatically impacts on workers negatively (Card, 1992). Therefore, the current study demonstrates the pure truth that should drive into the decision on how the lowest wage rate is determined. The decision not only helps the government in concluding but also the business workers in their daily

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Minimum wage is the lowest, baseline hourly salary employers are legally allowed to pay their employees. It was first legislated in the year 1938 under the presidential leadership of Franklin D. Roosevelt (Minimum Wage - ProCon.org). The current federal minimum wage stands at $7.25 an hour, with a few states adjusting their minimums to some higher degree. In this current decade (from 2007 – 2017) where there has been a somewhat aggressive rising cost of living and inflation, the debate regarding minimum wage is forefront and increasingly relevant. The notion of this has brought me to select the topic for further research.

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The federal minimum wage has long been a topic of controversy in U.S. domestic policy. In fact it’s been in contention since its inception. The U.S. followed the models lead by Australia and New Zealand, which established the world’s first minimum wage policies in the 1890s. The Progressive faction here at home introduced the idea of a U.S. minimum wage; their argument was that a wage should be sufficient enough to support a common worker's necessities. This resonates just as arguments used today, and proponents even go further in prospects of increasing the Federal minimum wage.

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The Minimum Wage Struggle Money is an essential object to acquire in the society we live in. Various places demand a high monthly rate in order to occupy a premise, along with the stress of utility bills that may not be included. Aside from living costs there are many other factors which must be calculated when budgeting on a day to day basis. Overall, the survival rate tends to increase due to so many responsibilities that need to be upheld, as well as costs being raised. This rise in both the cost of living as well as the need for higher wages proves that the standard of minimum wage needs a major increase.

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America today is faced with its fair share of problems. There are low employment rates, debt, and inflation everywhere, riddling the economy with issues. There is absolutely no reason that any American citizen should want to pile upon the problem. Yet, some believe that it could be done by raising the federal minimum wage to fifteen dollars an hour. Fortunately, history, economics, and common sense prove the minimum wage raise proposition wrong.

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Nowadays many economists debate on necessity of minimum wage and its influence on Economy. Economics doctrine shows, that minimum wage can bring positive as well as negative influence for economy development. Therefore the policy of minimum wage has as many arguments for as against. The role of State and Trade unions has a high impact level to determine the size of minimum wage and its existence in relationship between Employer and Employee.

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There has been quite a heated debate the last couple of years about the effects of increasing the minimum wage in both Canada and the USA, the question still remains “Is it better to pay above-average hourly wage?”. Despite the possibility of negative effects from a higher than average hourly wages, the positives results of such practices outweigh said negatives. Most businesses believe the conventional wisdom that a high hourly wage can run the risk of driving up production costs and decrease revenue from potential sales. In reality increasing wages and paying new employees above minimum wage can create more positive solutions for a company instead of problems.

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The impact of increases of the minimum wage on employment has been debated for decades and modern economists hold a different perspective to minimum wage increases which have always been said to have a negative employment effect. With the use of the Katz index, which is an economic indicator shown by the ratio of the nominal legal minimum wage to the average wage, this economic indicator may be used to determine whether the minimum wage is set too high or too low. If the minimum wage is set too low, employers may abuse their bargaining power in wage negotiations with lower skilled workers and pay them less than the marginal product of labour. Employers would be more inclined to hire more workers so that firms produce at optimal levels, although this may further increase inequality as profits may rise and are usually distributed among higher skilled workers. On the other hand, if minimum wages are too high, employment growth will be cut back as the neoclassical supply and demand curve illustrates above, holding other variables constant.

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