One of the cons to increasing the minimum wage is that it helps larger corporations and hurts smaller businesses, therefore, competition is decreased. The bigger companies use raising wages acts as a barrier to entry to new business entering the market and create a monopoly for larger companies who have more profits to afford the increase. An example of this is Wal-Mart, who can afford to pay employees nine dollars and twenty cents an hour but a little store such as Meijer 's who does not make as much profit would limit their hiring of new employees and would cut hours to compensate. A family store might decide that the cost of entering the market is too high to endure as they build up their clientele and develop their business they decide not
The topic of minimum wage is one that can lead to heated debates from both sides of the aisle over how much a person should be getting in payment versus how much work they do, or how hard they work to earn the payment. Countless people today are not getting paid the amount they should be based off of the work that they are putting in to their job. There are arguments leaning towards the raising of minimum wage, and there are arguments leaning against the raising of the minimum wage, however one of the arguments I find persuasive. There are some arguments that lean towards the raising of the minimum wage. The first argument presented involves job creation in the United States.
Should we raise the minimum wage? What are the pros and cons of raising the wages in the entry level job market? Ira Knight’s speech, “Let’s Make the Minimum Wage a Living Wage”, tells us of some of the pros of raising it. However, Janice Steele does a much better job proving why it would hurt us more than help us in her article, “Keep the Minimum Wage Where It Is”. To begin with, Ms. Steele shows us how raising the wage could hurt the workers that we are trying to help.
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
The first national minimum wage was not set until the year 1938 during the presidency of Franklin Delano Roosevelt. As a piece of the New Deal legislation, the Fair Labor Standards Act set new requirements regarding labor and wages. This act affected many things including setting a national minimum wage for the first time. Until this point, different groups had tried to set minimum wages but had failed. Courts generally found minimum wages unconstitutional against the ideal of liberty of contract.
Raising the Minimum Wage and How It Impacts the Economy Executive Summary In 2014 during his State of the Union Address, President Barack Obama announced a proposed raise to the minimum wage from $7.25 per hour to $10.10 per hour. Speculations on the economic impact to the United States were not in short supply, and were strongly argued for and against on this sensitive issue.
There are multiple reasons why the minimum wage shouldn’t increase from where it is at now. Firstly, raising the minimum wage won’t reduce the poverty level as so many people are mislead to believe. In the article “Raising the
People never think of the cons that come with raising minimum wage; they only think about how they could profit from it. Servers at "Waffle Now" eating establishment, have complained about how they need a more plentiful pay. I understand that with giving a higher wage, it creates people's pockets to become bigger and they could thrive on all their responsiblites. But, with extending the wage, this comes with amping up prices in the restaurant, have a shortage of staff , while also cutting hours or people possibly from their job. Pay more could potentially set back this restarunt that already isn't flourish the way it should.
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).
One of the dreadful effects of moving wages up from $7.25 is that businesses would have much less revenue; which would be coming
Minimum wage’s use was always to provide a single male with enough resources to live in that age’s society. As the prices of our resources increased, minimum wage increased to accommodate these people. However now, the Ontario Provincial government has decided to raise the minimum wage to $15 per hour to help out single parents trying to make ends meet. This was the primary factor in raising the minimum wage and was a compelling argument that urged the Provincial Parliament to vote in favour of this raise. This decision has both its positives and negatives that must be discussed, this policy was created with good intentions, however, there are too many flaws in minimum wage that must be addressed.
What Do People Think About When It Comes to the Minimum Wage? Many people are not concerned about raising the minimum wage because the majority support it. Greenhouse (2012) describes the opinions of people around the United States on minimum wage. Many state legislators are looking to raise the minimum wage in their respective states.
For The Wages of Raising is Repress There is no such thing as a “free lunch”, because nothing is free. Although free situations seem to occur, a price is always paid by someone, or from something. In the situation of a free lunch, a free with purchase, or even a buy one get one free, a cost is always payed, because someone spent the time, resources, and money to make the product. Even though the consumer does not directly pay the cost, someone else does.
This research will converse numerous opinions on minimum wages. It will also offer answers to questions like where did minimum wages get its start? Impact on increasing minimum wages, how it affects the companies, how do wage increase why were minimum wages created? Confer the benefits of providing minimum wages with benefits the workers, presenting the pros and cons. How are minimum wages benefiting the economy, do it help increase the economy?
Ideally, the government would decrease worker compensation because of higher pay. Due to this, it would increase the reduction of labor turnover. However, with the reduction in labor turnover, employees would most likely stay at their jobs for longer periods. Our economy currently struggles with poverty rates, which rapidly increase as the years go by. Times Magazine stated, “12.4% of Americans now live in poverty according to new 2022 data from the U.S. census, an increase from 7.4% in 2021.”
