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Effects of Raising Minimum Wage
Transcript of Effects of Raising Minimum Wage
To what extent does the issue of minimum wage affect the american people; and how do they feel about how this issue would affect them?
Minimum Wage is the least amount of hourly, daily, or monthly payment that employers may legally pay to workers.
The Federal Minimum wage has not been changed or adjusted since 2009
There has been recent mention of increasing the Federal Minimum Wage to $10.10
This topic is considered to be very controversial as many people differ on the effectiveness of this action.
Studies show that if minimum wage had kept up with inflation, minimum wage today should be approximately $10.55
Why is Minimum wage is a hindrance to the economy?
When you look at minimum wage as a benefits or hindrance one must consider whose point of view is taking account.
The employees might look at the higher wages and see more income but on the other hand the employer would see it as a loss.
“There is nothing but a lack of social vision to prevent us from paying an adequate wage to every American citizen whether he be a hospital worker, laundry worker, maid or day laborer. There is nothing except shortsightedness to prevent us from guaranteeing an annual minimum — and livable — income for every American family.”
-Dr. Martin Luther King Jr.
How would $10.10 help?
By Geremy Ramos & Iljo Lee
Disadvantages of Increase in Minimum Wage
Increasing minimum wage would improve the economy as it would boost consumer spending.
Most people who would benefit from this mostly see the benefits they would attain from it.
If Minimum Wage were to go up today, Studies show that the increase of the Federal Wage would only affect about 2% of the Country's Work force.
When we look at the American Economy, The increase of The minimum wage would lead to increase in inflation as well.
The Corporations within the country would have to pay more to the workers and would hurt small time businesses because of the fact that it would demand more from them.
As in any controversial topic there are always two sides to the disagreement.
There are many who disagree with the raising of the federal minimum wage.
Most simply believe that it will do more harm than good.
People currently do not believe that a higher minimum wage would be beneficial in the long run.
one thing which may cause this disagreement is that some people are more informed about the effects that this could trully have more than others.
Is it really all that great?
To what extent would raising be minimum wage be more of a hindrance than than a benefit?
Many people would argue that the Increase in the Minimum wage is actually a trade off just like Bill gates mentions in the interview.
The Trade off would consist of either the work force shrinking and replacing it with more automated or paying everyone which would lead to inflation of the currency.
Results from increase of minimum wage
As the rate of pay goes up, Inflation would follow along and sooner or later the prices of products will increase.
The increase in the Minimum Wage would not only effect the people in poverty, it would have to increase everyone's wage that is between the Minimum Wage and the new one created.
Finally, the smaller businesses would be hurt from the increase and would result in even less jobs being available along with the factor that the major corporations would be attracted to invest more money towards foreign countries to cut their fundings.
Much of this issue is highly dependent on perspective.
Those who are more directly affected see a raise in minimum wage as something very beneficial whereas those least affected may see it in a different manner.
Many people who perhaps are not directly benefited by a raise in minimum wage see it as a benefit to them in many other ways.
Some people see that even though they might not be directly affected there are many other ways in which they could also benefit from this in the long term.
As seen here there may be many other benefits to this which would beneficial even to those who are not directly affected by this.
In some aspects this is true, a raise in the federal minimum wage would mean that families who were dependent on government assistance or welfare may no longer be as dependent which would mean the less taxpayers dollars would have to go to government aid.
This would therefor not only benefit those who are directly affected y a higher minimum wage but also those who are not directly affected.
This is also one of Obama's key points to push for the implementation of a higher minimum wage.
This would benefit many families as it would mean that perhaps they might no longer have to worry about living paycheck by paycheck.
A higher minimum wage would ensure lower income families more money which would bring many families who are currently below the poverty line to a point above it.
Its not as great as it seems
A higher minimum wage may lead business owners and employers to not want to hire as many employees or to even lay off other employees in order to compensate for the higher wages that must be paid.
More Good than Harm
Allowing for a higher minimum wage would improve the economy in the long run.
The higher wages would allow those in poverty to spend more money and therefor would boost consumer spending.
There may still be much disagreement but even those who may not be directly affected by this should realize that it would be very beneficial for them in the long run.
In conclusion, The issue of raising the federal minimum wage is an issue in which the American people do not currently agree. Even though there may be many obstacles currently raising the federal minimum wage would be very beneficial to the nation as a whole. Those who are directly affected by it will see the effects sooner but it will affect everyone and benefit everyone eventually even those who are not currently affected.