The Negative Effects Of The Minimum Wage - 1282 Words

Minimum Wage Should the government raise minimum wage? Should the government lower or keep the current minimum wage? Minimum wage is a very controversial topic when it is discussed between all parties. For those arguing for minimum wage increase believe that it will bring people living below the poverty line above it. Former President Obama stated, â€Å" no one working forty hours deserves to be living in poverty.† For those arguing against the raise on minimum wage believe that it has more negative effects than just causing citizens to lose jobs. However, I believe that the government should control the minimum wage and if it is to be raised than it needs to be done in a manner that wouldn’t negatively affect the individual or the†¦show more content†¦Typically, this is seen in restaurant industry with servers, bartenders, and bar backs. These employees are paid below the minimum wage and then they collect tips from customers. How does minimum wage affect employees? Studies have shown that when minimum wage increases a decrease in employment of less educated workers. (Cato). The decrease in the employment of less educated workers is because due the minimum wage increase, employers begin looking for a more qualified candidate. Such as an employee having a high school education. With more increases in the minimum wage, than employers will raise their standard of their employee, requiring higher educations or some type of certification. (Cato). However, when there is an increase in the minimum wage there is an increase in high school drop out rates. Does minimum wage affect education? The correlation between minimum wage and a lower education level of citizens in the U.S. is considered a conflict theory by social scientists. A conflict theory means that without one than the other issue wouldn’t have occurred. Studies have shown that citizens who were able to drop out prior to turning 18 had an increase of 2% when the minimum wage increased compared to when they had to be 18 prior to dropping out. (Kasperkevic, 2015). Now the people who the minimum wage was originally set out to help is actually hurting them. (McConnell, 2015). What is the employer doing when they are faced with increasedShow MoreRelatedThe Positive and Negative Effects of Raising Minimum Wage805 Words   |  4 Pagessensitive topic for many Americans is their income. Many people’s income relies on minimum wage. In 2012, 3.6 million people received an hourly pay at or below minimum wage. There is an ongoing debate in government as to what the minimum wage should be. Stuck at $7.25, Obama has suggested raising the minimum wage to $9.00. Depending on a person’s perspective, raising minimum wage could be positive or negative. Minimum wage has the ability to change lives, and change the economy. Small businesses and unemploymentRead More The Negative Effects of Raising the Minimum Wage Essay1552 Words   |  7 PagesIf we took away the minimum wage, we could wipe out unemployment completely because we would be able to offer jobs at every possible skill level. -- Michele Bachmann Proponents of raising the minimum wage claim that if the minimum wage was raised, then many economic and social problems would be alleviated. This contention is at odds both with economic principles and years of creditable research. The effect of raising or even having a minimum wage has been studied extensively and theRead MoreThe Federal Minimum Wage Should Have Negative Effects On Employment1893 Words   |  8 Pagesfederal minimum wage. Stacey Brundson, a single father of two, said he has donated blood to bring in extra cash just to help his family afford the basics. â€Å"Sometimes there’s not enough in my paycheck to make it through the month,† said Brundson (qtd. in Harris). Although numerous conservatives and business owners believe that a modification in the current federal minimum wage will have negative effects on employment, on low-skilled workers, and on consumer’s prices, increasing the federal minimum wageRead MoreThe Effects Of Minimum Wage On The United States1168 Words   |  5 PagesResearch shows if minimum wage was to climb that it would hurt the least skilled and the least experienced people trying to seek a job the most. There are different of opinions people believe in about the positive and negative aspect of minimum wage. Supporters argue that such a boost will shrink poverty without plummeting jobs and that it will boost confidence, increase the normal living, and cut inequality and have businesses to be well-organized. Opponents that are not for minimum wage say it will increaseRead MoreMinimum Wage And The Wage960 Words   |  4 Pagescountry, 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 answered 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 Feder al minimum wage. It is important to understand that the state s minimum wage is different than the Federal. In some states it mayRead MoreRaising The Federal Minimum Wage889 Words   |  4 Pagesthe federal minimum wage would positively effect the economy. In doing so, I will be discussing how an increase in the federal minimum wage would make a vast improvement on the way many low income families live, and also how raising the federal minimum wage would boost the economy as it desperately needs. In raising the federal minimum wage, one might argue that it would cause a spike in the unemployment rate. The reasoning is that it would force employers to balance the increase in wages that theyRead MoreThe Minimum Wage Law Should Not Exist1684 Words   |  7 PagesThe minimum wage law was first enacted in January 1938 (Mutari, Ellen), and since then, people have falsely been led to believe that it is beneficial to the economy as well as the general population. It has commonly been seen as a method to reduce poverty by redistributing income in order to make sure that people earn a healthy, living wage; however, evidence has shown that it in fact does just the opposite. Forcing a minimum wage goes against the free market, and severely disrupts the natural processRead 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. The contemporary federal minimum wage is $7.25. Minimum wage applies to all domestic workers but teenagers are the main receivers of minimum wage. Minimum wage has a major effect on the economy. The question is are the effects positive or negative. There are many arguments on whetherRead MoreRaising The Federal Minimum Wage1225 Words   |  5 Pages Study shows that wage increases do lower poverty, by 2.4% if wage at $8.00, consistent with other studies. (Washington Post/ Arin Dube) 1. Raising the federal minimum wage doesn’t cause substantial unemployment as most economists agree, including over 600 economists who wrote a letter to Congress urging a wage increase, and the Economic Policy Institute. A. Identify shortcomings of the opposition (fallacies they make, or weaknesses in the evidence they use) 1. Arin Dube’s study would be great,Read 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 theory