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The Pros And Cons Of Minimum Wage

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Minimum Wage Decisions
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Institution Minimum Wage Decision
Introduction
Many things interrupt people's ability to focus on a task, minimum wage being on the forefront as it directly affects the business persons and the size of what goes into their pockets. Their cry will always be that they meet their daily needs to support their families. Employment is the key to sustaining people to meet their daily requirements, minimum wage, according to the standard of economic theory, will lower the work of low-wage workers. A debate has risen on the question of deciding on how to reduce minimum wage and how it should be cut because it directly impacts on people's earnings in their businesses. Numerous studies have been conducted to overlook …show more content…

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 …show more content…

They found that if the actual payments will at one point decline, then it tampers with the purchasing power of consumers, hence poverty goes up. United States Bureau creates a report on income and publishes them year by year. From their publications, there is an increase in poverty levels and decreasing salaries over time. From there data released in 2006, there was a significant gap in the difference between the earnings of the poor and those of the rich. Those below 125% are; White 14.4%, not Hispanic were 11.4%, Black 30.7%, Asian 14.1% and any other race 28.9%. From the data, it is clear that poverty not only exists in other races but also in the

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In the article, “Minimum Wage Hikes Hurt Low-Income Workers,” Jame Sherk debates how an increase in the minimum wage would impact workers and corporations. Sherk builds his argument by first explaining the recent history of an increasing minimum wage and how much it has risen. Following, he argues why it would hurt businesses and low-income workers. Lastly, after illustrating the consequences, he offers statistical evidence to support his claim and to prove to the reader why the hike would only hurt both businesses and low-income workers. Sherk’s use of evidence and explanation offers a strong argument and a clear stance.

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In the last few years, the topic of the minimum wage has been a highly debatable subject. There are numerous perspectives regarding raising the minimum wage. “The concept of the minimum wage can be defined as the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period,” (ILO,2014). A few of the common disagreements are how unemployment rates will be affected, who will be most affected by a change, and what alternatives are available. In the article “Why the next president should raise the minimum wage” Roger Lowenstein argues that it is his belief that raising the minimum wage will benefit society by reducing unemployment rates and thus reducing the amount of the population living in poverty.

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The Federal Minimum Wage is widely considered to be the backbone of American workers’ rights. Minimum wage was created and implemented to ensure that workers get paid fairly for the time that they work, and get paid enough to support themselves and their families. However, this, though once a reality, is no longer happening. Because of the inadequacy of the Federal Minimum Wage, and perhaps more importantly, the gross negligence of the Executive Branch of the United States government of said inadequacy, as was displayed by the Republican­controlled Congress blocking a bill in 2014 that would have raised the Federal Minimum Wage to $10.10 per hour, workers are suffering and struggling to avoid poverty and personal economic disaster. The federal

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Through examination of the public policy of minimum wage, a justifiable position regarding the policy will be able to be conferred. There are several reasons that minimum wage laws and legislations have been set in place over the course of many years. These laws, as stated, set a minimum income for specific groups of

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Considering its role in setting remuneration standards, the minimum wage affects other factors of employment such as the availability of jobs and the citizens' purchasing ability. Therefore, it causes a decrease in employment to some extent and enhances the household, individual, and family income. The primary role of the federal minimum wage is to ensure that workers are not underpaid and that they are not exploited by their employees (Manzo, & Bruno, 2014). Actually, the determination of the

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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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U.S Minimum Wage One of the most frequent topics discussed in our country is U.S. minimum wage and whether it should be raised or not. Minimum wage should be raised so that it can change the structure of our economy in a beneficial way. There are many debates discussing the pros and cons of raising minimum wage. There are many pros that out way the cons in why minimum wage in the United States should be raised. Throughout this paper I’m going to provide facts regarding why minimum wage should be raised.

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Families as a whole will argue the point that an increase in minimum wages will allow families the abilities to put more food on their tables, while providing the base necessities need in the family. However, most analyses of the minimum wage focus on its unintended employment consequences. (Freeman, 1996) Some major companies have agreed to increase the minimum wages in some States, nevertheless, the amount that the wages have been increased by is not enough to get a family from beneath poverty. Proven the fact that job markets in some cases are not working in the best interest of their employees.

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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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Many politicians, business owners, and citizens hold fast to the belief that heightening the salary attached to minimum wage positions will yield negative benefits for our society. This opinion is supported by three vital view-points. The first can be found in the news article, “The Argument Against Raising Minimum Wage.” It expresses how the enlargement of this payment will take a toll on employment. The document reasons that if the amount of money employees earn is expanded, companies will be less likely to hire as many workers (Huppke).

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The lack of change for 15 years for the federal minimum wage is a major issue in today's economy. Despite the fact that some states have taken measures to raise the minimum wage. However, several states remain with the same minimum wage and millions of hardworking Americans are still unable to handle the rising cost of living. The unwillingness to raise the minimum wage to reflect inflation and growing living costs has resulted in significant economic inequality, putting many low-income workers at a disadvantage. The minimum wage should not be raised based solely on hourly reductions; it is to ensure that every worker receives a livable wage.

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This academic report presents recommendations to effectively implement a minimum wage policy in contrast with its potential challenges. The policy is deemed to yield an increase in wages for low-income workers, hence steering the economy

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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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Introduction Minimum wage is the lowest hourly rate an employer can pay an employee for hours worked. The topic of raising the minimum wage is a sensitive issue for many people. The livelihood of many relevant stakeholders will be directly effected by policies created in regards to raising minimum wage, both positively and negatively. This paper will examine the history and current state of minimum wage. It will identify the issues connected to raising minimum wage, analyze the arguments for and against, and make recommendations based on the analysis.

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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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