Economic View Of Raising The Minimum Wage Essay - 1791 Words

Economic View of Raising the Minimum Wage Minimum wage has been a touchy subject for decades, but especially in this election year, it is more profound than ever before. With candidates screaming at each other, it’s important for the citizens of America to know the facts about minimum wage along with the costs and benefits. Continue reading to discover the truth about wages in America. From a small business owner perspective, it is safe to say people are split 50/50 about raising the minimum wage. The supporters think a raise will have more positive externalities than negative. For example, some predict more money will be in worker’s pockets which will allow them to buy more goods from small businesses and therefore, aid small businesses (Harrison, J.D., 2014). Continuing with this idea, if worker’s have more money, then there will be more money put back into the economy, in general, benefitting all businesses—not just the small ones. Another prediction, f rom small business owners, is increased worker productivity. This increased productivity is caused by the incentive to work hard when it is rewarded (Harrison, J.D., 2014). On the other hand, not all small business owners agree with a raise in the minimum wage. In fact, some see no benefit at all arguing they are barely surviving after the previous raise in federal minimum in 2007 (Harrison, J.D., 2014). To put it simply, some can’t afford to pay their workers more at this time. Still, others say a raise simply wouldn’tShow MoreRelatedMinimum Wage And The Wage1639 Words   |  7 PagesMinimum wage is one of the many microeconomic policies that serve to correct imbalance in the economy. It is defined as the lowest amount of remuneration required of an employer to pay his employees during a given period of work. There exist different laws in different states that can fix the minimum wage policy. 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Introducing the minimum wage provided stabilization in the workplace, but as the cost of living increases, working Americans are demanding a livable wage. In the recent past, the American dream fadedness changed the way Americans view the economy. For many wageworkers, the AmericanRead MoreEssay on The Debate over Raising the Minimum Wage1502 Words   |  7 PagesThe federal minimum wage was raised to $7.25 an hour by Congress in 2009, something that has been carried out only a handful of times since the establishment of the wage in the Fair Labor Standards Act in 1938. Even with this modest rise in income, the minimum wage today does not provide for a decent standard of living. It has failed to keep pace with the wage growth of an average American worker. The minimum wage was intended provide a minimum standard of living; to aid in alleviating povertyRead MoreShould The Minimum Wage Be Raised?1307 Words   |  6 PagesSHOULD THE CURRENT MINIMUM WAGE BE RAISED TO $15.00? Fred Wehmer Embry Riddle Aeronautical University Author Notes Fred W. Wehmer, Professional Aeronautics, Embry Riddle Aeronautical University Contact: wehmerf@my.erau.edu ABSTRACT Fred W. Wehmer Embry Riddle Aeronautical University Rolf Hemmerling /ECON 211 11 October 2015 This paper will explore the pros and cons of raising the current minimum wage to $15.00. It will start with the history and reasons for the minimum wage. It will cite theRead 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 higherRead MoreEssay on The Minimum Wage Should Be Increased1048 Words   |  5 Pagesfederal 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 income level reduces employee turnover and increases efficiency and ultimately, raising the minimum wage d oes