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.
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.
Let' say the restaurant manager decides not to raise menu prices, although, because of his decision he has to terminate some staff due to expenses . Now, people have higher pay, or some have NO pay or source of income, because they are unempolyed . Another reason, Increasing wage can and would effect people poorly, it could cause a shrinkagein hours resulting in the same amount of money a person was making before. An employee would be making the same amount of money with excelled pay, because the hours they had before, would no
Although you can back up whether you think workers should be payed more or not, the minimum wages of fast food workers should not go up. If the minimum wages increased, taxes would increase as well and the people who earned higher paying jobs by getting a great college degree and deserve getting payed a pretty decent amount would be taken away money through taxes to give to people with an unskilled job that anyone can get, anyone. Now that doesn’t make any sense! Unemployment rates would also go up because if the minimum wages per hour double, then the company would have to fire half of their employees and lots of workers would lose their jobs. So, it would actually hurt the economy by raising the wages then it would do good.
They conclude that increasing minimum wage to $15.00 would only kill the amount of jobs available. This is a basic application of supply and demand. The higher the cost of something, the less that it will likely be bought. If wages are doubled, then companies might fire some employees and/or regulate the amount of hours someone works. However, this argument has been proved wrong.
The impact of a substantial increase to the minimum would be too great for many small businesses, and the unemployment rates would be greatly impacted, as well as financial assistance for those below the poverty level. “Minimum wage was started in 1938 with the passage of the Fair labor Standards Act and has been increased 22 times since” (Pros and Cons of Raising the Minimum Wage). “The most recent adjustment was in 2009” (Pros and Cons of Raising the Minimum Wage) To increase the minimum wage at the current levels being
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.
An increase in hourly wage for lower paying jobs would cause a multitude of socioeconomic issues resulting in vast unemployment of low-skill workers and general inflation of everyday consumer goods with other economic issues. Lower-skilled workers
Will raising the minimum wage solve income problems? Many people seem to say that raising the minimum wage will not only solve problems for people who live in poverty, but everyone will be able to receive wages that will leave them in a safe environment. In the recent discussion of raising the minimum wage per hour, a questionable issue has been whether everyone will have a job after the wage has been increased. Many people argue that raising the minimum wage will give everyone a content income that will be enough to support the family. However, others argue that many people who are about to start their career, will have a hard time looking for a job, as employers will be forced to hire less people.
or making almost to those that has been working for years. The rise of hourly wage has caused and effect those who’ve been employed and have been working for quite some time already. For those that was earning less than the newly established wage, their wages will be raised to the latest minimum wage without a cost of living adjustments from their employers. And then here comes the newly hired employers making the same wage as those that do have experiences due to the fact that their ‘newest’ wage has been adjusted to the minimum wage without any additional adjustments to their skill levels. Therefore, the employers are getting the upper hand in this situation, because they are now able to pay those with and without any skill levels the same wage.
The cost of living is a difficult situation that many Americans across the country struggle with today. A heated debate that directly impacts the lives of all citizens is whether or not the price of minimum wage should be increased. Minimum wage is the standard amount of money earned for executing a basic skill job. Some people hold strong beliefs on why enlarging minimum wage is a major downfall, while others think this process is extremely beneficial. The following paragraphs will discuss the pros and cons surrounding both sides of this topic and the reasoning that births each one.
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
When looking at the effect raising the minimum wage would have on the economy is astonishing. The drastic effect the economy would take makes it seem like the obvious choice is to not raise the minimum wage. The Center of American Progress’s massive economic growth plan calls for setting the minimum at one half the average wage for production and non-supervisory workers. (Mendoza) Hanquer proposes raising the minimum wage to fifteen dollars is more than doubling the federal minimum. (Hanquer)
