Raising The Minimum Wage - 888 Words

Raising the Minimum Wage The employment effect of the minimum wage is one of the most studied topics in all economics. Today, the debate over raising the minimum wage has been a hot topic after President Obama explained in his 2014 State of the Union address that he intends to raise the minimum wage from $7.25 to $10.10 per hour, an increase of over 40 percent. While the President and his supporters claim that this increase would greatly benefit the economy and result in growing the businesses. Unlike some suggest that creating more jobs for people who need them rather than raising earnings for people who already have them is a better solution for reducing the national poverty rate. Minimum wages are on the agenda in many parts of the world (Luce 2). For example, countries like Australia and Mexico have minimum wage legislation, so they have Fair Work Commission that sets an hourly minimum wage by industry every year. In United States, the minimum wage now is $7.25 an hour, but citie s and counties in California, Illinois, Maryland, New Mexico, and Washington set their own wage that helped grow the businesses markets. Therefore, the three main reasons why increasing the minimum wage will help the businesses are; have more opportunity for new jobs, reduce expense for social programs, and decrease turnover rate. First, having more opportunities for new jobs and that means if these minimum wage employees are spending more, then businesses are earning more and need to hireShow MoreRelatedRaising The Minimum Wage? Essay1217 Words   |  5 PagesThe minimum wage is one of the most discussed issues around the country. Everyone has a different opinion if raising the minimum wage would help families across the country to have a better lifestyle or if would cause an unbalance in the economy. Democrats and Republicans have a different view on this issue, while Democrats supports raising the minimum wage by $15 an hour, Republicans have stated that they refuse increasing the wage because it would leave different factions of Americans outside ofRead MoreRaising Minimum Wage912 Words   |  4 PagesMinimum wage has long been a topic that has brought on many heated debates. It has been said over and over again that minimum wage should be raised. These people say that raising minimum wage only does good for people. However, I, along with many other people, believe this is wrong, and we should instead be making moves to keep minimum wage where it is. Raising minimum wage may provide some positive effects, but those positives only go on to be overwhelmed by the negative effects caused by it. WagesRead MoreRaising The Minimum Wage?1575 Words   |  7 PagesThe issue of raising the minimum wage from $7.25 to $15 an hour is a heavily debated topic. Both sources against or in favor of the minimum wage refer to a â€Å"growing gap† between low-income workers and high-income earners. Sources against the minimum wage believe raising it will increase this gap, whereas those in favor of the minimum wage believe it will decrease this gap. The arguments in favor of the minimum wage rely mostly on ethical beliefs, such as â€Å"pay should reflect hard work,† to advanceRead MoreRaising The Minimum Wage?1122 Words   |  5 Pagesâ€Å"Raise the wage!† reads many protestorsà ¢â‚¬â„¢ signs across America. Many people believe this to be the answer to the financial inequality that plagues our country. The federal minimum wage was established to keep workers from settling on a poor living standard (Leonard A.11). Since this was passed, multiple debates and issues have risen. One begins to ask the question, is this truly the best way to resolve the unequal distribution of wealth? After research, it has been found that there are many drawbacksRead MoreRaising The Minimum Wage1979 Words   |  8 PagesResearch Raising the minimum wage can result in job losses due to lower profits for businesses. It can also potentially decrease employee hours by changing them from full time to part time. Additionally, it may reduce the full time benefits that they receive. If this were to happen, then the employees affected will actually be earning less than they did before the increase. For example, from the Article Maximum Divide on Minimum Wage (Mejeur, 2014), they state, â€Å"Labor costs are the largest shareRead MoreRaising The Minimum Wage1037 Words   |  5 PagesRaising the minimum wage from $7.25 to $10.10 is not a good idea. The unintended consequences that would come about as a result is reason enough to shy away from such a proposal. Those who support an increase contend that it will alleviate poverty. Suppose these advocates are right and a spike in the minimum wage does reduce poverty for some fortunate workers. This positive development will be offset because an increase in the minimum wa ge will further price out inexperienced workers from the jobRead MoreRaising The Minimum Wage?870 Words   |  4 PagesThe topic of raising the minimum wage has many different viewpoints. It is thought to be affected negatively and positively. Some believe it increases unemployment and poverty. Others believe it creates jobs, helps the economy and low-income families by giving them more money to give back to the economy. Doug Hall, director of the Economic Analysis and Research Network and David Cooper, Economic Analyst at the Economic Policy Institute, expressed how the increase in minimum wage affects certainRead MoreRaising The Minimum Wage?2447 Words   |  10 PagesThe minimum wage is defined as the lowest compensation, by law, which an employer may pay his or her employees. In the United States, this monetary value is set by a collection of laws on the federal, state, and local levels. While state and local governments may choose to observe a higher minimum wage than the national minimum wage, the federal government ultimately controls the income of the nation’s lowest-earning employees. At the federal level, the minimum wage was last raised in 2009, fromRead MoreRaising The Minimum Wage1864 Words   |  8 Pagespersevere, and really believe in yourself, good things will come. Drastically raising the minimum wage goes against all of those principles, rewarding lethargic actions and poo r life choices. Raising the minimum wage to $15 will do more harm than good for middle class americans by decreasing the value of the money in their pockets, driving out big companies, and generally increasing unemployment. Increasing the minimum wage causes middle class Americans have less money in their pockets to spend. RepresentativesRead MoreEffect Of Raising Minimum Wage1215 Words   |  5 PagesEffects of Raising Minimum Wage The minimum wage in this country has been a controversial issue. Many people believe it will help reduce poverty and boost the economy. However, they are not looking at the downfalls this will bring to our country. This could make the unemployment population rise, it will raise prices of other things, and would have little effect on reducing poverty. Raising the minimum wage would have a negative influence on our country. This movement throughout our country