Minimum wage was set so that employees would receive a fair wage for their work. No, it is not time to abolish the minimum wage. If there were not a set minimum wage companies could pay their employees what ever they felt like paying them. Of course, they would not be able to go too low or the employees would just leave and then the company could go under, but it could possibly be lower than what the minimum wage was set at in the first place. The cost of living would have to go down if there were to be no set minimum wage otherwise more and more people would become poverty stricken by the sudden loss of income.
How would you make it on a day to day base’s it would be one of the hardest things that you’ve ever done but yourself in the shoes of a minimum wage employee. Making a living below the poverty level doesn’t make the person lazy you or mean that they do not care it simply means that they are doing what they have to do. In some places job demand is extremely high making it very hard to even get a job let alone a job that’s not paying minimum wage. Minimum wage employees are forced to make hard decisions and unfortunately there is nothing normal about
The current minimum wage is not the primary problem for the poor, because most poor don’t work at minimum wage. In fact, according to one study, “Over 60% of those under the poverty line do not work, and only 11% have full-time jobs” (Wagner) Since the increase in the minimum wage will cause large amount of job losses, those who are under the poverty line and don’t work will have even a harder time finding work. Another effect of an increase in the minimum wage is that small business will become less profitable. Those who are
Any additional raise of minimum wage would totally jeopardize the everyday lives of all Americans. The fewer jobs available, because of the pay hike, will mainly be the cause of the lower class workers’ unemployment. Simply, the minimum wage debate is a touchy subject among many economists and political figures. There are an immense amount of arguments toward the good and bad aspects of minimum wage, but one incontrovertible fact is that a minimum wage elevation causes loss for businesses, as well as, working people. The larger businesses try to make things seem more at ease than they truly are.
Secondly high taxes create disincentives to work and this can be analysed through income and substitution effects. The substitute for work is leisure time and when taxes increase the opportunity cost for leisure time decreases, also people will have to work longer hours to earn the same post tax income causing disincentives as it reduces living standards as people must work longer and harder for the same incomes. This will create disincentives to work and so lead to a reduction in the labour force meaning less people in jobs and so less people paying income tax. Also as people earn less this way consumption in the economy falls therefore reducing the governments VAT recipts and corporate tax revenues and businesses make lower profits. This will lead to increases in the fiscal deficits as the government earns less and may be spending more in forms of social protection i.e.
Zoe Rathgeber ECON 102 Position Paper April 17, 2012 There are many working Americans who earn the minimum wage. Countries throughout the world uphold minimum wage laws, which shows that the minimum wage is important to policy makers. Finding the connection between minimum wage and job loss is one of the most pressing matters for economists. Raising the minimum wage would be detrimental to the economy and has become one of the most significant problems economists and blue-collar Americans have faced during the recession today. A higher minimum wage is detrimental to local economies as well as many workers through increased unemployment, lack of skills and an inability to further careers.
Wheelan continues to say although it seems inhumane to have employees in sweatshops working for meager wages, it gives people jobs who otherwise may have no job at all. Also, lower prices are the equivalent of higher incomes. Wheelan also mentions that world trade opens the doors of domestic business to other countries which increases investment and business. Trade is one beautiful process. In conclusion, Wheelan strongly asserts the point that the economy is always changing, and factors like GDP and inflation will never stay the same.
Now, if you are unfortunate enough to not have the drive to excel then you either stay at your lowly wage or eventually give up. We have too many people on this planet to be handing out raises to those who don’t earn it. The government uses the hiking up of minimum wage as a powerful platform to instill the
Businesses would benefit by middle income people spending their wages quickly because of basic needs. It isn’t the rich, or the 1-percenters as they are known for, that makes our American economy strive; it’s the working class that does. The one’s struggling to pay their rent could be the way to a striving economy. Today’s federal minimum wage has eroded over
Minimum wage is the lowest hourly payment an employer must pay for his or her workers. To employees, minimum wage laws acts as a protection which employees can insure their own rights and have a reasonable standard of living. Having or raising the minimum wage can also effect other aspects positively, such as, benefiting low-income families, improving the efficient of a total production, reducing the gap between the rich and the poor, and so forth. A partial of people are opposing the concept of having a minimum wage claiming reasons like: it may reduce job opportunities and it can create a more competitive market for the employers. However, in my point of view, I believe setting a minimum wage is more beneficial than it is harmful.