Essay on The Minimum Wage Should be Raised Words6 Pages Minimum wages go all the way back to , during the great depression, when the stock market crash and bank loan were failing. Families need income of some type, were they wanted to make it fair were individual could get pay the same without a college degree Nov 07, · William Hoar from The New American argues in his article “Misguided minimum wage mandate” that raising the minimum wage will only result in loss of jobs. According to the editorial board at USA Today, “ inflation adjusted income of the top 1 percent has grown by 58 percent and the remaining 99 percent has only grown by percent” May 15, · Minimum Wage should be Increased Having to work a minimum wage paying job drastically effects an individuals economic status and morale however, this issue is often overlooked. Today, in the United States, wages in comparison to the cost of living is not realistic. The cost of living is increasing while work wages are staying the same.4/5(12)
Why the Minimum Wage Should Be Raised Free Essay Example
This sample is Should minimum wage be raised essay ORIGINAL. As enshrined in the United States Fair Labor Standards Act, FLSA, the minimum wage policy aims at curbing poverty and minimizing income inequality. Nonetheless, increasing the minimum wage elicits intense debate from opponents and proponents of the strategy. This paper reviews secondary sources arguing for and against the increase in minimum wage as a way to curb poverty and inequality, and in its conclusion from the findings, arguing that the federal minimum wage should not be raised.
For over a century, should minimum wage be raised essay, the minimum wage remains a critical component of public policy. Neumark and Wascher trace its back to the s in Australia and New Zealand. It aimed at ensuring fair pay for work done. In the United States, the provisions of the federal minimum wage are enshrined in the Fair Labor Standards Act, should minimum wage be raised essay, FLSA. With its history traced back to when applied to Virgin Islands and Puerto Rico, the FLSA has undergone numerous amendments to what it is today, covering the whole of the United States.
It aims at helping families attain self-sufficiency, thus targeting low-paid occupations. Even though there are states with greater employee protection legislations, all states should adhere to both legislations. In cases where the minimum wage set by the federal authorities differ from that set by the state authorities, employees are entitled to the higher minimum wage.
Having not been amended for the past five years, there are calls to have the minimum federal wage increased. Furthermore, depending on the increase in the Consumer price Index, these amounts would be reviewed by the Secretary of Labor after three years and yearly thereafter.
Indeed, should minimum wage be raised essay, cities, counties and businesses have taken action to effect these amendments. These leaders raise critical issues that do not support the raising of the federal minimum wage.
As such, the federal minimum wage should not be increased. The widespread argument is that raising the minimum federal wage would improve the living standards of the people. This increment would cushion families from the effects of inflation, should minimum wage be raised essay.
With women being the greatest beneficiaries, it is argued that the welfare of many more families would be positively impacted. Secondly, raising the minimum federal wage would improve the economy. As documented by DOLapproximately 28 million workers stand to benefit from an increase in the minimum wage. The increased earning by the low-wage workers would cause them to spend more.
According to the Executive Office of the Presidentincreasing the minimum wage would result in an increase in aggregate demand, should minimum wage be raised essay the study by Federal Reserve Bank of Chicago economists which revealed that increasing the minimum wage would cause a 0.
Consequently, this would foster the performance of the economy. Increasing the minimum federal wage would attract more productive workers, should minimum wage be raised essay. These include spouses not much interested in the work or retirees who also could should minimum wage be raised essay without the work.
To such people, should minimum wage be raised essay, quality of work is paramount, thus high productivity. This positively affects the performance of organizations, making production attractive. On the other hand, increasing the federal minimum wage poses a risk of increasing unemployment rates, thus hurting the low-skilled workers, the people whom it should positively impact.
Increasing the minimum wage would result in an increase in should minimum wage be raised essay costs for employers across the country. To cushion themselves, employers would undertake job cuts so as to manage their expenses on wages. More specifically, Puzzanghera and Hennessey argue that this increment would cause a loss ofjobs, this being about 0. Evidence from the American Action Forum indicates a slower employment growth in restaurants and retail occupations, these being fields where employers are most likely to be paid the minimum wage, in states that had implemented the raised minimum wages Morath, This acknowledges minimum wage as a critical determinant of hiring decisions.
Since the recession, employers have been struggling with production costs, a fact that has even forced them to pay their employees below the minimum wage. Adams gives examples of a Chinatown restaurant and Upper East Side pizza place in New York as among the many organizations which cannot pay even the current minimum wage.
This is attributed to lack of enough wage competition as a result of the recession. Thus, increasing this minimum would cause most of them to close shop, leaving many unemployed.
With unemployment being one of the top concerns for America, raising the minimum wage should not be approved as it would destroy instead of create the much needed jobs in the country. In the same way, prices of commodities would rise, thus creating a null net effect of the increment on the lives of the low-wage workers.
Should the increase in minimum wage not affect the employment rate as intended by the Executive Office of the Presidentthe wage bill for these employers would rise. Consequently, employers raise the money needed to pay for the higher wages by increasing prices of their products or services.
Therefore, in as much as DOL argues that the should minimum wage be raised essay of the people would increase, there could be a high likelihood of this not being realized as the wage increment would be consumed by the additional costs of commodities. Therefore, there would be no meaningful net effect of the increased wage due to the increased prices of commodities. Another critical fact to consider is that raising the federal minimum wage compromises on the development of an economy.
Evidence from primary studies conducted by Neumark and Wascher from the mids shows that increasing the minimum wage makes such wages attractive to the youth and teenagers who in turn leave school for jobs. Increasing the minimum wage also makes firms shy away from offering training to young workers who are sources of wage growth in future, should minimum wage be raised essay.
For these reasons, some states opt to offer the bare minimum wage as dictated by the federal authorities just for compliance. These findings attest to the fact that increasing the federal minimum wage could discourage education among the youth and teenagers and jeopardize the skills of the workforce in various firms thus negatively affecting the development of the economy.
There are better alternatives to dealing with poverty and inequality than increasing the minimum wage. One of the most fronted alternatives has been the alteration of the earned-income tax credit. Most of the low-wage earning employees struggle to meet their basic living expenses, especially those that have families to support. The government, through the earned-income tax credit initiative, gives payouts to such people with low incomes. This is meant for the poor families and not the relatively affluent spouses, retirees or college students Morath, Increasing this credit provides a better alternative to curbing inequality and poverty, the basic reasons on which the argument on increased federal minimum wage is based.
In fact, Adams observes that even conservative groups such as the Employment Policies Institute support this strategy. Moreover, studies show that increasing the minimum wage has no or little effect on poverty reduction. Neumark and Wascher cite an academic study which documented no change in poverty rates following the federal and state wage increases effected between and Therefore, instead of increasing the minimum wage, other more effective alternative strategies to reducing poverty and inequality should should minimum wage be raised essay adopted.
The minimum wage policy as documented the United States Fair Labor Standards Act, FLSA seeks to curb poverty and minimize income inequality.
The main aim of this policy is to help families attain self-sufficiency and therefore targets workers in low-paid occupations. When the government increases the federal minimum wage, it anticipates improving the living standards of its people, lifting them above the set poverty line. The economy also improves due to increased aggregate demand and also attracts more productive workers for employment.
Nonetheless, there being benefits and costs with increasing the minimum wage, its implementation should follow a consideration of the acceptability of the tradeoffs between the benefits and costs. Overwhelming body of evidence argues against increasing the minimum wage as a way to curb inequality or poverty. Increasing the federal minimum wage would almost certainly lead to a reduction in employment opportunities, especially among the entry-level, low-skilled wage earners for whom a job presents the first step on their opportunity ladder.
It results in increased should minimum wage be raised essay of commodities thus a null net effect on poverty levels in addition to compromising the development of the economy due to promoting school drop-outs among the youth and teenagers attracted by the higher wages. There exist better alternatives to reducing poverty and minimizing income inequality such as increasing the allocation for earned-income tax credit.
As such, the federal minimum wage should not be raised. Adams, S. Executive Office of the President. A year of action: Progress report on raising the minimum wage.
Washington, D. Morath, E. Labor Day turns attention back to minimum-wage debate, should minimum wage be raised essay. The Wall Street Journal. Neumark, D. Minimum wages. Cambridge, MA: Massachusetts Institute of Technology.
Puzzanghera, J. Los Angeles Times. United States Department of Labor. Minimum wage. Should the Federal Minimum Wage Be Raised?. February 17, Should the Federal Minimum Wage Be Raised? Accessed 19 May, Essay Samples Minimum Should minimum wage be raised essay Essays Should the Federal Minimum Wage Be Raised? Minimum Wage. Abstract As enshrined in the United States Fair Labor Standards Act, FLSA, the minimum wage policy aims at curbing poverty and minimizing income inequality.
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Essay on The Minimum Wage Should be Raised Words6 Pages Minimum wages go all the way back to , during the great depression, when the stock market crash and bank loan were failing. Families need income of some type, were they wanted to make it fair were individual could get pay the same without a college degree Nov 07, · William Hoar from The New American argues in his article “Misguided minimum wage mandate” that raising the minimum wage will only result in loss of jobs. According to the editorial board at USA Today, “ inflation adjusted income of the top 1 percent has grown by 58 percent and the remaining 99 percent has only grown by percent” Sep 11, · One thing that I believe is that raising the minimum wage is good for the economy. According to Jones & Farness (), people who earn minimum wage account for approximately seventy per cent of the United States gross domestic product. Raising the minimum wage means people will have more money to spend which helps to propel the economy blogger.comted Reading Time: 6 mins
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