Essay On Negative Effects Of Minimum Wage

1590 Words 7 Pages
The negative effects of minimum wage far outweigh the positive effects. The minimum wage has been a very controversial topic in politics over the last decade. The U.S. federal minimum wage was first established during the Great Depression in 1930 as part of the Fair Labor Standards Act, and it has risen from 25 cents an hour to $7.25 per hour (Berlatsky). Many politicians agree with the minimum wage, some want to do away with the minimum wage completely, and there are even politicians such as Hillary Clinton and Bernie Sanders would like to raise the minimum wage. As of now, March 2016, the minimum wage ranges from $5.15 an hour in Georgia to $15.00 an hour in Washington state. With such a wide gap and so much varying opinion, what is the …show more content…
Instead of competition between good workers and bad workers, everybody gets the same rate. If one worker is twice as productive as another worker, and the minimum wage was not instilled in the economy, the less productive worker would lose a percentage of their wage and increase the hourly wage of the more productive worker. If an individual is a hard worker, there is no reason on why they would not support the idea of getting rid of the minimum wage. The benefits they would receive would be tremendous, including higher pay, more hours, and finally, less competition to compete with higher paying better jobs. Tim Worstall of Forbes magazine says “I have long been arguing that it would be better for us to raise the Earned Income Tax Credit rather than trying to raise the minimum wage. In this I am in accord with both Warren Buffett and a rather large number of economists. Mostly the argument in favour of doing so is that the minimum wage has unemployment effects, something we consider undesirable, while the EITC, by its very design, increases employment, something we consider desirable.” (Worstall). This is why the minimum wage kills job opportunities for good, hard working

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