The Effects Of Raising The Minimum Wage - 1311 Words

The Negative Impacts of Raising the Minimum Wage While the debate over the effects of raising the minimum wage continues, there are countless studies and statistical data to support both sides of this controversy. Often the negative impacts of these wage increases are overshadowed by those who want to help the working class who live at or below the poverty level. Do these increases actually help the ones that they were intended to help? What are the negative impacts on the rest of the working class? How do these increases affect small business, unskilled laborers and overall unemployment? Originally enacted in the 1930s to ensure fair wages for all those employed, today the minimum wage rarely benefits those it was designed to help. Increasing the minimum wage has been shown to have many negative impacts such as reducing entry level non-skilled positions, increased unemployment, and has been shown to be a key factor in increasing inflation. Surprisingly, the minimum wage does very little to help the workers it was intended to help. Data from the Bureau of Labor (2014) shows that only 4.3% out of the 75.9 million hourly paid employees earned at or below the Federal Minimum wage of $7.25 an hour with just over half of those earning less than that due to working in jobs that are exempt such as disabled workers, tipped employees, and full-time students. This population of workers currently accounts for a smaller portion of the work force than it used to and in turn onlyShow MoreRelatedEffect Of Raising Minimum Wage1215 Words   |  5 PagesEffects of Raising Minimum Wag e The minimum wage in this country has been a controversial issue. Many people believe it will help reduce poverty and boost the economy. However, they are not looking at the downfalls this will bring to our country. This could make the unemployment population rise, it will raise prices of other things, and would have little effect on reducing poverty. Raising the minimum wage would have a negative influence on our country. This movement throughout our countryRead MoreEffect Of Raising Minimum Wage1215 Words   |  5 PagesEffects of Raising Minimum Wage The minimum wage in this country has been a controversial issue. Many people believe it will help reduce poverty and boost the economy. However, they are not looking at the downfalls this will bring to our country. This could make the unemployment population rise, it will raise prices of other things, and would have little effect on reducing poverty. Raising the minimum wage would have a negative influence on our country. This movement throughout our country is beingRead MoreThe Effects Of Raising The Minimum Wage1944 Words   |  8 Pages At one point or another, minimum wage is a term that most American people will familiarize themselves with. The topic of minimum wage can sometimes be a particularly controversial one, so it is important that we understand the true effects that this has on our nation’s economy. Before the fall of our economy and the increase in prices of everyday necessities, such as monthly bills, groceries and gasoline, a family could have found it easier to survive off of this wage; however, as the prices continueRead MoreThe 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 Effects Of Raising Minimum Wage On The United States2322 Words   |  10 PagesThe Effects of Raising Minimum Wage My topic of interest is the effects of raising minimum wage in the U.S. Minimum wage is defined as the lowest wage permitted by law or by special agreement. In 1938, President Roosevelt signed a bill called the Fair Labor Standards Act of 1938, which set the minimum wage at $0.25. Although, overtime inflation devalued the amount of the dollar so it was raised there on. After raising the minimum wage the cost of living would keep going up every year. Also, currentlyRead MoreThe Effects Of Raising Minimum Wage On The United States969 Words   |  4 PagesEffects of Raising Minimum Wage Raising minimum wage has in the recent years become a very controversial and personal issue, and although it is slowly becoming a more popular idea, some people still resist the movement. What people who oppose the adjustment of minimum wage are not considering, is that by raising minimum wage, it will allow low income families or otherwise low income individuals to earn more, in turn, allowing them to spend more money on goods and services. It will also help theRead MoreThe Effects of Raising the Minimum Wage on US Economy1507 Words   |  6 Pagesyear, the minimum wage has been increasing from less than a dollar to $7.25 now. The question that comes to everybody is that should we increase the minimum wage by too far. Does the minimum wage increase reduce the unemployment since now the current wage is high enough? Some people might think that we should increase the minimum wage in order to increase the labor supply. However, if we think deeply than this, there are more disadvantag es than advantages of increasing the minimum wage. The fartherRead MoreRaising the Minimum Wage: A Counter-Intuitive Solution Essay753 Words   |  4 PagesWhile some believe that raising the minimum wage will resolve poverty issues and lack of pay with the signing of legislation, the raising of the minimum wage to $10.10 an hour (as advocated by President Obama and the Democrats) would cause the poverty issue to be worse than it already is; inflation would occur, employees would be laid off, and minimum wage employees would lose welfare benefits, thus offsetting the wage increase. The Government should consider the effects on the American economy asRead MoreMinimum Wage And The Wage Essay1204 Words   |  5 PagesThe minimum wage is one of the most controversial issues on our country, which is United States has been facing last ten years. There have been never ending debates over this issue until the government, company, and others party stand together, and raise the minimum wage throughout the nations. There are communities that believe raise the minimum wage has negative impact of every sector of the country. Other communities have different beliefs over the issue, raising the minimum wage helps the poor