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The Pros And Cons Of Increasing Minimum Wage

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If the minimum wage increases, it doesn’t necessarily mean that the economy will get better or our standards of living will be better. If wages go up, then the standard of living will also increase. There are statistics that have proven why the raise of the minimum wage will actually cause more issues. As the minimum wage increases, the unemployment rate will increase. As well, there is a huge potential of causing small business to collapse due to higher wages and being unable to afford it. Machines would replace humans. The impact would be massive to the economy. This is why the minimum wage should not increase. The raise of the minimum wage will increase the unemployment rate. The unemployment rate will increase because low skilled workers …show more content…

The idea may sound great. The more money the more people consume. Yes, that is true if we build more jobs, But increasing the minimum wage could lead to another economic problem. If Congress raises the minimum wage to $15 an hour, the employer would be paying $18.61 an hour. The employer would be paying $15 for the minimum wage, $0.19 for unemployment insurance taxes, $1.15 in payroll taxes, and $2.21 per hour in Obamacare penalties. Even though, $15 an hour is a huge amount of money that unskilled workers would be getting paid. Many politicians support this idea. Many political believe that by raising the minimum wage we are saving the poor people. It would reduce welfare, Medicaid, and Medicare. The country would have more money and the GDP would increase. However, when the price of a product increases then people buy less of it. There wouldn’t be much demand for the product. If that was the case it would close down business or it could make them go overseas where labor is cheaper. The United States used to have many factories where millions of workers were employed. Once they closed down or moved overseas our economy crashed. They couldn’t afford the minimum wage here, but if you go to a different country, labor is much cheaper. If it costs $30 per sweater to be made in The United States and overseas, it would cost $5 per sweater. That is a huge difference. That difference could happen again if our minimum wage goes up to $15 an

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Raising the minimum wage isn 't entirely beneficial. It could potentially lead to more unemployment as some businesses may reduce their number of employees or reduce their hours in order to offset the cost of paying a higher minimum wage. Some may also increase the prices of products or services offered. It can also possibly lead to a decreased interest in college education since minimum wage jobs are paid almost the same or can be more than what jobs requiring college education pay.

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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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Everyone is going to have different opinions over whether the minimum wage in the United States should be raised to $15 an hour or whether it shouldn’t, because there are pros and cons to each. The current minimum wage in the United States is $7.25 an hour and according to a Mother Jones article, Could You Survive on Fast Food Wages? Try our Calculator, the median wage fast-food workers receive is $8.94 an hour, while “on average they work about 24.5 hours per week” (Could You Survive on Fast Food Wages? Try our Calculator).

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Should government raise minimum wage? Minimum wage is set at $7.25 an hour, and if minimum wage was raised to $15 an hour such as in California, California 's law will affect both a much larger number of people, and a much more diverse population of workers than any other measure to date. A few reasons why raising minimum wage is a bad idea is because current employees who get paid the minimum wage would be obligated to do more work. To keep labor costs low, these employees would have to take on additional duties and responsibilities to make up the difference in hours available. Since more people would be willing to work for more pay, the current workers would be likely replaced by higher quality workers or automated systems.

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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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For example in Seattle, the minimum wage was made to be $15, which led to a rise in unemployment. Many employers cannot afford to pay everyone that much money without taking a loss, so a higher wage means less jobs.

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First and foremost, job loss would hurt the economy if minimum wage was raised. James Sherk, the author

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This would make it where people wouldn 't have to live paycheck to paycheck. Raising the wage slightly would also make it so the price of goods wouldn 't have to be raised. The 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. This raise increase would be easy to implement and would help the economy. By implementing this new minimum wage many problems in America can be solved.

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Throughout the past several years, America has heard the voices of many on protest for the “Fight for 15.” Raising the minimum wage to $15 an hour could show that people pushing the issue have their hearts in the right place. However, the impact this would have on the economy would be negative and would be the cause of more economic problems. Raising minimum wage to $15 an hour would be bad for America and its’ economy. One reason why raising minimum wage to $15 an hour is a bad thing is because it would lead to an increase in the cost of labor.

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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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If America raises the minimum wage to $9.00, it will help people in need or in poverty, but it also won’t hurt people in the workforce. If you increase the minimum wage to $15.00 it will make unemployment rates go high up. Which in the process, makes the homelessness rates go up in the country and in your community. If you keep the minimum wage at $7.25 people will stay in poverty and homeless or on the verge of homelessness.

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$15 an hour sounds great to almost everybody, but most people don’t realize that if we all made $15 an hour it wouldn’t be as great as it sounds. The federal minimum wage should not be raised and should be kept at $7.25 because its negative effects on people 's income, inflation of prices due to a domino effect and the loss of jobs in mass numbers. There is no reason to raise the minimum wage in the first place, one of the claims I have heard from you is the ”reduction of poverty.” The problem with this claim is that the majority of poor Americans do not work at all, for any wage, so raising the minimum wage does not help them. It is like giving extra milk to a lactose intolerant person, it has no effects and only takes milk away from the rest

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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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607 Words | 3 Pages

There are a lot of potential benefits for an increase in minimum wage and on the surface it’s hard to see why you wouldn’t want to increase the wage. One of the clearest to see is that an increase to the minimum wage will also increase the spending for each household during the following years. So it works to help stimulate the economy in whatever area you increase the minimum wage. Along those same lines increasing the minimum wage will lead to a decrease in poverty as well. With the decrease in poverty you will also see a decrease in government spending on welfare items because the individuals receiving the higher wage in theory will be able to pay for these services/welfare items without assistance.

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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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