...In today’s society, many political leaders debate about whether raising minimum wage would help or harm both our economy and our United States working class earning minimum wage. I feel that our country should not raise its minimum wage, for while it may help those that keep their minimum wage jobs, it would make the laid off and fired workers suffer. Many businesses would not be able to afford paying their current number of employees, meaning that there would be less job opportunities, and unemployment would increase. Also, with fewer job openings earning minimum wage, overqualified individuals would take a majority of the job positions, leaving fewer opportunities for less experienced workers to learn necessary life skills. Raising minimum wage is not a smart move for the federal government to make, because businesses have strict budgets that they must follow. We must remember that just because the minimum wage can be freely altered by the government, does not necessarily mean that businesses will magically have more money in their budgets to distribute to their employees. Instead,...
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...Raising minimum wage would change the way people live. The increase would make living conditions better for people who don't have good ones. People also wouldn't have to struggle to provide for their families and for themselves. The increase would help people enjoy life. Although increasing minimum wage could help people provide for their family, it could also cause many people to lose their jobs. Increasing minimum wage would help people live is. People also wouldn't have to struggle to provide for their families and for themselves. The increase in minimum wage would help people enjoy life. Although raising minimum wage would hen better conditions. The article" The Pros and Cons of Raising Minimum Wage" says that," Increasing minimum wage raises the standard living for impoverished people." This means that people wouldn’t have to worry about getting a job, or worrying about if they have enough money to put food on the table. People would worry less if the minimum wage was raised. To...
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...According to “ The Pros & Cons of Raising Minimum Wage”, minimum wage has only been raised three times within the last 30 years. To make up for the inflation that has gone on the government should increase the minimum wage. While prices may increase in the economy, increasing the minimum wage will bring forth a more successful economy because of the inflation, the decrease in the turnover rate and there being more opportunities for available jobs and better living for those included under the poverty threshold. First, increasing minimum wage will bring forth a more successful economy by helping make up for the inflation in the economy we have today. Sources say that President Barack Obama wants to increase the minimum...
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...Effects of Minimum Wage in Our Economy Barbara Munoz Microeconomics Dr. Pieper Kaplan University Upon receiving a paycheck, many feel it is simply not enough. On the other hand, employers may disagree. Minimum wage is the least amount of money an employer can pay their employees. Some argue that this said wage is not enough for average living expenses, while others feel that those who get paid minimum wage are paid what they are entitled to. Currently, the controversy is mainly regarding whether or not the federal minimum wage should be raised. An increase in the minimum wage raises the standard of living for impoverished workers. Nonetheless, this may have an adverse reaction in the economy. Minimum wage has not been changed since the last time in 2009, it was raised to $7.25. Ever since then, “the federal minimum has lost about 5.8% of its purchasing power to inflation.”(Pewresearch.org). It is eye opening to realize that inflation goes up every year, yet minimum wage has only been raised three times in the last three dacades! Since the buying power of the dollar bill has decreased, it is harder for families that earn minimum wage to survive. Even though their money is worth significantly less, they still need to pay the same or increased prices for groceries, utilities, and rent. On the other hand increasing the minimum wage could have a negative effect on economy as well. The current plan is to try to increase the amount gradually to $10.10 by 2016. The projected...
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...According to Webster's Dictionary The definition of minimum wage is “the lowest wage paid or permitted to be paid” (“Minimum Wage”). The big question is, should minimum wage be raised? Over the years there have been many protests in Wisconsin because of people thinking that they deserve a higher pay rate. I strongly disagree with this controversial topic of raising minimum wage because it will cause more job layoffs and cut benefits, small businesses can’t afford it, and it will reduce the worker's motivation to get a higher education. $0.25 an hour was the first federal minimum wage in the 1930’s (“Why We Should Not Raise the Minimum Wage”). Although the minimum wage has raised to $7.25 per hour since then, many people still believe it is still not high enough....
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...increasing the federal minimum wage is actually beneficial to our country and its residents. “Minimum wage is defined as the lowest amount that employers can legally pay their workers per hour of labor” (History and Debate of Minimum Wage). Most jurisdictions have laws that enforce a minimum wage; however there are benefits as well as disadvantages to this type of policy. Minimum wage laws were initially established to reduce poverty and are upheld with particular goals in mind. Those who support minimum wage laws generally believe that these objectives are being sufficiently achieved, which is enough jurisdiction to maintain the laws. Those who are opposed the minimum wage laws usually believe that it harms less skilled workers and raises unemployment (History and Debate of Minimum Wage). There are many pros from the side that is in favor of raising the minimum wage. An increase in the minimum wage would create more job opportunities because it would cause minimum wage employees to spend more leading to an increase in earnings among businesses and requiring them to hire more employees to keep up with their increase in sales. Raising the minimum wage would also allow some people who rely on additional support from the government to be able to support themselves better without being as dependent on social programs. This would ultimately lead to lower taxes as well as a reallocation of funds that provide support for other’s needs. An increase in minimum wage would also lead to a...
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...The debate whether minimum wage should be lowered or increased has been a very contested topic for many years. There two sides to this topic and both have a side to be discussed and agree with and disagree. Even tho everyone believe it should be raise there is also another side and should be lowered. Lowering minimum wage sounds pretty harsh but also has its pros and cons. Everyone can have there own opinion and lowering minimum wage is mine. Lowering minimum wage has its reason like if they do reduce it many jobs will be available and hiring workers and likely not outbalance individuals that are making less money. Also, companies that minimize jobs when minimum wage increases, then there is no benefits to hiring more people to work for them, unless they occupy more workers. If minimum wage is lowered it will help people for example it would lower prices and things will be cheaper. If it is lowered it will allow businesses, mostly smaller business to survive during difficult economic problems. Then it will not affect lower class human race to a greater level. Even if they to raise or lower it i think people should still focus on the fact that looking for a job at least and not doing anything but complaining helps. Just like lowering minimum wage has its reason so does raising the minimum wage would also help economy. I support the fact...
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...Should the government raise minimum wage One of the biggest debate is whether or not should the government raise minimum wages. Individuals who is living on a minimum wage will find it a bit difficult. They may be struggling to pay their bills, providing food on the table, and clothing themselves. I suppose it is unfair to the hard- working individuals. Minimum wage needs to be raised so people would be able to afford things. There will be more opportunities for jobs if minimum wages increased. If the people who make minimum wage spend more, then businesses will earned more and will be in the need to hire more employees. The only problem is the surplus of workers because than many employers would want to get paid more. There...
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...Discuss the pros and cons of raising the minimum wage. Give your opinion, experiences and real life examples. Also discuss the complicated relationship between cities, states and the federal government. Raising minimum wage has been a popular topic since the 2014 State of the Union Address announced by our President. His desire is to increase minimum wage by over 40%, which is $7.25/hour to $10.10/hour. While the president and his supporters claim it to be beneficial, opposes predict over 500,000 jobs will be lost. Pro: Economic Incentive (raising the minimum wages means more money to expand resulting in more money flowing through the economy by individuals spending more), Increase in Job Opportunities (earning more money leads to spending more money. Businesses will need to hire more employees to keep up rising sales), Reduced Expenses for Social Program (employees who re earning more money will be able to support themselves better without depending in social programs which would result in lower taxes), Turnover Rate would Decrease (with a higher minimum wage, employees may feel more comfortable and satisfied in their jobs, they are less likely to leave. Lower turnover rate means fewer hires which means less training expenses), and Inflation (this would account for inflation, which rises every year. Minimum wage has only increased 3 times in the past 30 years). Cons: Layoffs (some companies may no longer be able to support the number of employees they currently hold. While...
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...The Devastating Effect of Raising the Minimum Wage Raising the Federal minimum wage does not reduce poverty. If legislators raise the price of low and unskilled labor, businesses would reduce the workforce. The very laborers that are pushing for raising the minimum wage are the ones that will suffer the most. An increase in the minimum wage would lead to job loss and may result in higher prices for consumers. Minimum wage increases may result in severe economic devastation. Recently in New York between ten and fifteen thousand laborers marched in an effort to persuade lawmakers to increase the minimum wage to fifteen dollars per hour. The majority of those marching were activist students and employees of fast food industries. If protesters are successful in securing a fifteen dollar per hour minimum wage up to seventy percent of them will lose their jobs. For the first time in history, if the fifteen dollar per hour wage is approved, a fully automated solution would be an economically viable solution for struggling companies like McDonalds. Several companies are nearing commercial launch of the automated burger process. “Roboburger,” an automated burger machine can produce 8,500 burgers a day while 25 employees can produce 320 per day in comparison. If the companies are only required to pay a minimum wage of eight dollars per hour and contract labor, which means no benefits, it would still be viable to hire those 25 employees. The automation over the next few years...
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...Minimum wage has been a problem in many states simply because people believe that their pay isn’t enough and should be raised to support themselves and others. But why should minimum wage be raised? I believe otherwise because the US raising minimum wage can cause problems for us, don’t you think? I believe minimum wage shouldn’t be raised. I believe that raising minimum wage can destroy businesses. The government raising minimum wage can destroy those small companies that already cannot afford to pay their employees more than the minimum wage. No company would want to lose their business because they are trying to pay employees more when they know they can’t afford it. If a person really thinks about it they will be able to see that if businesses did start to pay more than the minimum wage many people can lose their jobs. In the article, For the first time, majority of states have minimum wage above federal level, Charlene Conway a co-owner of the Carousel Family Fun Center will have to lay off staff members to be able to pay more money to the employee’s “ She might have to layoff several members of her 40 person staff and totally eliminate the younger workforce”...
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...The Business of the Minimum Wage • Quantity demanded of employees decreases when quantity supplied of potential employees increases, as minimum wage increases from $7.25 to $10.10. • The green dot shows original equilibrium, when minimum wage was at $7.25. Raising Minimum Wage: WHO GAINS •Government receives higher income tax due to increase in wages. •Low income families are likely to receive more positive impact from new increase wages. WHO LOSES •Potential workers may face potentially unemployment since now employers may not hire as many employees due to increased wage expenses. •Consumers ends up paying a high price for goods and services. •Job market will shrink due to employers reacting to increased wage expenses. DIFFERENCE •Inflation rate will increase. IN IMPACT ASSESSMENT •Pros: To stimulate employers competition and to reduce lower labor turnover •Cons: The positive impacts of a new minimum wage is short-lived since costs and prices will react to this change. Wage => Cost => End Price IS RAISING MINIMUM WAGE A GOOD IDEA? No, because the consequences outweigh the benefits. At first glance, the benefits are positive, but are in fact superficial. In the long-run, the positive impacts are minimal. Bibliography • Romer, C.D., March 2, 2013. The Business of the Minimum Wage. The New York Times, Retrieved from http://www.nytimes.com/2013/03/03/business/theminimum-wage-employment-and-incomedistribution.html?pagewanted=all&_r=0 • “Los...
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...Federal Minimum Wage Proposal Research Essay MDH-ECO210 President Obama has proposed to increase the Federal Minimum Wage to $10.10 as well as increase the Earned Income Tax Credit among other items associated with this. There are those who oppose the increase to Federal Minimum Wage as well as those who support this proposal. What we have to question when looking at this increase is whether or not it will actually help the economy or if it will simply raise costs of everything we buy on a daily basis. It is necessary that “businesses need to have money available to pay for labor, materials, power, and other inputs” (McConnell, Brue, Flynn, 315). It is debated if raising minimum wage will stifle these businesses, by increasing their pay rate for labor. There are many factors to consider when looking at this proposal that has a multitude of pros and cons. If this constant debate continues as it has in the previous instances then the typical result will be that most Republicans will oppose the proposal while the majority of Democrats will be in favor of passing the bill. President Obama is quoted as saying in his State of the Union address that “in the wealthiest nation on Earth, no one who works full time should have to live in poverty” (Hassett, Strain, 2013). The case that is made against raising the minimum wage is very simple; by raising the minimum wage it makes it more expensive for businesses to hire employees. Those who retain their jobs will make more money;...
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...Minimum wage is one of the number one issues in America. There are debates on whether minimum wage needs a raise or stay the same. The current minimum wage in California is $10.50 per hour. Most people that work under minimum wage work more than 60 hours a week. Those people that work under minimum wage are most likely to live in poverty. People can not earn a living on minimum wage. This is why minimum wage needs to be raised. One reason minimum wage needs a raise is because it leads to a healthier population and less premature deaths. Over the past few years, fast food prices drop while the healthier food prices increase. The author states that in “many poverty-dense regions, people are unable to access affordable healthy food, even when...
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...they perceive the product is worth. In the same vein, an employee will only work for a wage that he deems appropriate. If the employer lowers the wage, fewer workers will desire the job. These are a few of the reasons why the free market principle has many benefits. However, in a free market there can also be market failures. Market failures can arise from a multitude of situations such as pollution, or extreme low wages in areas of poverty. In a free market, a company could cause massive amounts of pollution and not have to bear the market cost of that pollution. The society as a whole, including people who do not benefit from the cheaper product, are the ones dealing with the polluted environment. Currently our government has been discussing a raise in the minimum wage. President Barack Obama is pushing for this bill and has many supporters. A rise in the minimum wage will be a major business issue for the next year and presidential election. Pros: Raising the minimum wage some enticing benefits to the American people and also has some strong logical arguments. One of the supporters for a raise in the minimum wage is U.S. Congresswoman from Florida’s 24th District Frederica Wilson who recently wrote an article titled, Raising the Minimum Wage: Good Ethics and Good Economics, which discusses the market failure of low wages. Wilson bases her argument on that a rise in the minimum wage is good ethics and good...
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