Effects of Increasing Minimum Wage Essay - 988 Words

The idea of having a federal minimum wage is a good one. The idea is to protect low and unskilled workers from discrimination and allow all workers to earn a living wage. The recent debate on the floor, though, is whether or not to raise the minimum wage from the current $7.25 per hour up to $10.10 per hour. President Barack Obama made this proposal during his annual State of the Union Address on January 28, and following this there were many hot debates about it. The debates focused not only on the advantages and the disadvantages of increasing the minimum wage, but also the alternatives to increasing it. There are many advantages to increasing the minimum wage, most of which are simple enough to understand, and make someone think that†¦show more content†¦Moving along the list of advantages, increasing the minimum wage will also increase the amount of money workers have, which, in turn, will inspire them to increase their consumption and pump their extra money into the economy. If workers have more money going into their pockets from increased wages, the income effect comes into play, and provides an incentive to go out into the market and buy goods and services. In an article printed by The New York Times, it was also pointed out that raising the minimum wage would decrease labor turnover. This is because if workers are paid more, they have less incentive to leave their current job and seek a higher paying job. Another argument for raising the minimum wage is that almost half of the states in the nation already have minimum wage rates that are higher than the federal minimum wage. This includes states with fairly large populations, like California and New York. Because the states that would be affected by raising the minimum wage generally have lower populations than those who would not be affected, the percentage of people who would gain is smaller, and the number of company’s who would suffer would also be smaller. If raising the minimum wage would affect at little less than half of the states, and mostly only states with lower comparative populations, then why not raise it? As for everything in life, for every advantage there is a disadvantage, and this holdsShow MoreRelatedEffects of Increasing Minimum Wage794 Words   |  3 Pagesa federal minimum wage is a good one. The idea is to protect low and unskilled workers and allow workers to earn a living wage. The recent debate on the floor, though, is whether or not to raise the minimum wage from the current $7.25 per hour up to $10.10. President Barack Obama made this proposal during his annual State of the Union Address, and after this there were many hot debates about it. The debates focused not only on the pro side and the con side of increasing the minimum wage, but alsoRead MoreThe Effects Of Increasing Minimum Wage On The United States1853 Words   |  8 Pages The Effects of Increasing Minimum Wage Caroline Mattox Central Virginia Community College Introduction In 1938, the first national minimum wage laws in the United States were passed as part of the Fair Labor Standards Act, which served as â€Å"a floor below wages,† to reduce poverty and to ensure that economic growth is shared across the workforce. Today, many people who work for companies that pay at or near the minimum wage and remain near or below the poverty level rely on governmentRead MoreThe Effects Of Minimum Wage On The Economy1391 Words   |  6 PagesThe Effects Minimum Wage on the Economy The controversial topic about increasing minimum wage is debated countless times over the years. Minimum wage is the lowest wage an employer can pay an employee permitted by law. 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This wage is regulated by the law, so allRead MoreDoes the Minimum Wage Increase the Standard of Living for Low-Income People?1391 Words   |  6 PagesThe United States has maintained a minimum wage which was enacted since 1938. At the present time there is much political debate in regarding to increase the minimum wage to levels at the federal level, state, and local levels of government across this country. There are various theories regarding the minimum wage. Some believe it would circulate money into the economy faster which would negate and negative effects on employment, or even improve unemployment rates. Others point to the economic theoryRead MoreMinimum Wage And The Wage960 Words   |  4 Pagesculture, country, or type of job believe that increasing the minimum wage would solve individual financial problems. It is important to know that this subject is not a black-and-white problem and can not be answe red by a simple yes or a no answer. This article will be focusing on the minimum wage in America. Furthermore, we are focusing on the State s minimum wage rather the Federal minimum wage. It is important to understand that the state s minimum wage is different than the Federal. In some statesRead MorePros And Cons Of Raising The Minimum Wage1122 Words   |  5 PagesSince 2009, the federal minimum wage rate for employees has been $7.25 per hour. In retrospect, this is hardly enough pay to take care of one’s self-- let alone a family with children. If a person were to add up the average cost of living for one week and then compare it to the average amount of money earned in minimum wage for that week, it would be apparent that there is little to no extra money for emergency situations. Increasing the minimum wage has been a major controversial issue; DemocratsRead MoreMinimum Wage Raise in Seattle800 Words   |  4 PagesMinimum Wage Raise in Seattle After the protest in New York City, the issue of raising the minimum wage has come up once again. Seattle is spearheading this cause with a proposal of raising the minimum wage to $15 per hour. This will help minimum wage workers a great deal by increasing their income. However, there are concern that this move could hurt certain businesses, which can lead to higher unemployment and contraction of the economy. The ethical issue surfaced as this will benefit some atRead MoreAdvantages And Disadvantages Of Minimum Wage In Taiwan1541 Words   |  7 PagesIntroduction Nowadays, minimum wage is very important for workers in this world. In addition, minimum wage is also a core element of public policy in lots of countries. For example, minimum wage has become a hot topic in Taiwan recently. The Taiwanese complained that the working hours are too long, and the wages are too low. Because of that reason, workers in Taiwan have come forward to protest this policy. Therefore, according to this example, minimum wage has become an issue that cannot be ignoredRead MoreMinimum Wage Should Be Increased1057 Words   |  5 PagesRebecca Nevins Meredith Sides English 101 16 November 2015 Minimum Wage Should Be Increased Congress enacted the federal minimum wage in 1938, during the Great Depression. Congress had two goals; keeping workers away from poverty and boosting consumer spending for economic recovery. Today, there is a debate, whether we should increase the minimum wage again. Increasing the minimum wage is useful for several reasons. First, the current minimum wage has failed to keep up with inflation. Second, a higher