Should the minimum wage be increased essay. Should Minimum Wage Be Increased? Essay 2023-01-03
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The minimum wage is the lowest wage that an employer is legally allowed to pay an employee for their work. In the United States, the minimum wage is set by federal law and is currently $7.25 per hour. However, some states and cities have set their own higher minimum wages. The debate over whether the minimum wage should be increased is a contentious one, with advocates for an increase arguing that it would help lift workers out of poverty and improve the economy, while opponents argue that it would lead to job losses and higher prices for consumers.
One argument in favor of increasing the minimum wage is that it would help to reduce poverty and improve the standard of living for low-wage workers. Many minimum wage workers are unable to make ends meet on their current wages, and an increase in the minimum wage could help them afford basic necessities such as housing, food, and healthcare. In addition, an increase in the minimum wage could lead to a decrease in the use of public assistance programs, as workers would be able to support themselves and their families without relying on government aid.
Another argument in favor of increasing the minimum wage is that it could stimulate economic growth and increase consumer spending. When low-wage workers receive a pay increase, they are likely to spend it on goods and services, which can help to boost the economy. Additionally, a higher minimum wage could lead to increased productivity, as workers may be more motivated to work hard when they are fairly compensated for their efforts.
However, there are also valid concerns about the potential negative consequences of increasing the minimum wage. Some argue that it could lead to job losses, as employers may be unable to afford the higher wages and may need to cut back on staff. Additionally, an increase in the minimum wage could lead to higher prices for goods and services, as businesses may need to pass on the cost of higher wages to consumers.
Ultimately, the decision of whether to increase the minimum wage is a complex one that requires a careful analysis of the potential benefits and drawbacks. While an increase in the minimum wage could help to lift workers out of poverty and stimulate economic growth, it could also lead to job losses and higher prices for consumers. Policymakers and stakeholders should consider these trade-offs when determining whether to increase the minimum wage.
Should the minimum wage be increased Essay for Class 10, 12 (Board) and Mains Exam
That may not seem too hefty to families earning more than the minimum wage; however, in reality this is over-budget for families earning minimum wage. The …show more content… Economists explain this connection with efficiency wage theory. This will reduce business turnover rates and it will cost less for hiring and training processes. Raising the minimum wage in the United States will create a huge unbalanced economy by increasing the cost for businesses to hire. In real life, this would hurt most middle-class people living in the country. This job loss is concentrated on the least skilled employees in the economy. The increase would hurt small businesses that have small profit margins.
First, the current minimum wage has failed to keep up with inflation. In the United States, minimum wage started when the Fair Labor Standards Act of 1938 was passed and minimum wage started at 25 cents per hour. These reasons demonstrate that minimum wage not only affects individuals but also affects the economy as a whole. Part 1 Perhaps one issue of concern to many is regarding the minimum wage hike. Finally, an increase in the minimum wage is eminently beneficial to the United States as a whole. Many of his supporters agree because most of the states that he won, like Ohio, Michigan, and Wisconsin, which are traditionally blue, do not have other jobs available, which is a problem.
If the number of poor population increases, the GDP and the PPP of the nation will equally fall. However, companies utilize several strategies or policies to cope with the increase in business costs stemming from an increase in minimum wages. Also, it is likely that the production cost of the product will increase that will cause a decreased in the production thus, also decreasing the tax revenue Alesse and Gilbault, 2004. Inflation, however, is only perhaps around 1. If the minimum wage is increased, then infants and children will receive the special care they need, allowing them to grow up without suffering from health issues. However, researchers from Michigan State University found that raising the minimum wage have a wider social impact, it encourage the teenagers to leave school and work instead Alesse and Gilbault, 2004.
If a worker position could be replaced by a machine, many businesses would replace them rather than giving raises. Money that previously did not exist for some is now able to be placed into the economy by those same people on the things they need or want. According to the reference Issues Surrounding the Minimum Wage Debate REVISION 2- Bruce D. To all situations there are also tradeoffs. Congress enacted the federal minimum wage in 1938, during the Great Depression. The main concerns of the opponents include the decrease in employment and the increase of prices. In return, employers would pass these additional costs to the consumers by increasing prices for most consumer goods used by middle-class people in the country.
This will also lead to increase in costs of payroll incurred by most employers who would downsize their employees and reduce the working hours so that they can afford to pay their employees. The higher costs will cause a trickle effect on the economy and will cause more people to go into poverty. For many American workers, minimum-wage jobs are temporary prior to moving on to more suitable jobs. Today, there is a debate, whether we should increase the minimum wage again. A major advantage of a minimum wage is that it helps in eradicating poverty in the nation. A recent study by Andreas Georgiadis 2008 supported this view. One of the reasons to raise the minimum wage is to keep families inclined with inflation rates.
It some instances, the consumers may also be affected due to some other effects of wage increase. It comes from the employers, whether they are large or small. Raising the minimum wage will make employers obligated to pay more, and their incomes may not fund this increased payment. For instance The Minimum Wage Should Be Increased the federal minimum wage. When government raise the minimum wage, the firms will incur more expenses due to they have to pay more on the wages. Forbes Special scholarships are also given by the car company, Audi, through the STEM program. With many out of work and a good percentage of those that are working being paid the federal minimum wage, the average American struggles to afford life on their own.
Young people may be lock out of the workforce if the minimum wage is increased. According to James Kaz, the majority of those who are paid minimum wage are not poor but rather one of at least one other income providers in a household. Things that have been going on about this topic is that if the minimum wage goes up it will support families who most need it. Again, it is nearly impossible to achieve a minimum wage that would benefit all people. This results in more workers finding themselves unemployed which places an unnecessary pressure on the economy. Raising the minimum wage serves an additional asset to the economy by creating more jobs.
If the minimum wage was increased, nearly 40 million workers would see a rise in wages. What people do not realize is that the minimum wage has remained unmodified for more than a decade, causing inflation to surpass it. Can someone really care for a child and maintain a safe living environment. Minimum wage jobs would not help people to stay not poor, in fact they will make sure that they stay poor. With this, children will have greater economic mobility to increase their productivity. Increasing the minimum wage is useful for several reasons.
They provided the Economic Opportunity Act of 1964 however it did not abolish poverty as it was supposed to do, only lower the poverty line. Others think that is too low, and they want to raise it. Things that should be considered necessities but are not due to the lack of extra funds for them in the homes of low wage workers. This would place a huge pressure on the government reliefs programs as well as charities and create a massive number of poor people that is very hard to deal with. Raising the minimum wage will make it more expensive for employers to hire workers there fore a massive unemployment will accrue if this happens.