Four Reasons Not To Raising The Minimum Wage

Improved Essays
A highly debated topic is what the minimum wage should be for workers in America. This is the bare minimum that a person needs to live or that is its intent. Some people feel that it is too low, and that we should raise it. The United States Department of Labor says the raising the minimum wage will be good for the economy and also good for business (Minimum Wage Mythbusters). However some people think raising the minimum wage will be bad. The CATO Institute, in their Four Reasons Not to Raise the Minimum Wage article, bring up the points that raising minimum wage would, “result in job loss…, hurt low-skilled workers…, and higher prices for consumers” (Four Reasons Not to Raise the Minimum Wage). We should not raise the minimum wage. The U.S. …show more content…
In their article, Four Reasons Not to Raise the Minimum Wage they give some well thought out arguments on the consequences of raising the minimum wage. Their first point is that “it would result in job loss” (Minimum Wage Mythbusters). The show an estimate of 1.3 million jobs would be lost in 2010 if the wage was increased to $9.50 an hour (Minimum Wage Mythbusters). This is mostly due to the fast that businesses cannot afford this amount of pay. In order to keep a business profitable you have to bring in more money than you send out. So, to lower costs the first and most logical option is to fire people and let others pick up their slack. This contributes to the rising unemployment rate. They express this in their second point by saying, “it would hurt lower skiled workers” (Minimum Wage Mythbusters). In one analysis they cover, a small increase in minimum wage resulted in about a 20% reduction in jobs for people with these jobs (Minimum Wage Mythbusters). This shows us that by increasing minimum wage we are not helping out the people with these job, we could actually be doing the opposite. In an article from the Economist called Middle of the Class, they show that “80 percent think it is possible to start out poor, work hard and become rich” (Middle of the Class 483). People might think this but in reality it would be much hard for this to happen if there are less jobs available to start with. The last

Related Documents

  • Superior Essays

    It turns out that increasing the minimum wage means decreasing job opportunities. If the minimum wage increased, people will face lots of problem such as- it would result in the job loss evidence of job losses, hurt low-skilled workers, little effect on reducing poverty, and it may result in the higher price for consumers. Most Americans agree the current federal minimum wage is not enough to live on. It is hard to imagine some families are surviving on just $15,000 a year.…

    • 1438 Words
    • 6 Pages
    Superior Essays
  • Superior Essays

    In conclusion, there has been a history of arguments on whether the minimum wage should be raised or not. There are positives and negatives for both sides. I believe that minimum wage should stay the same, because if a worker is a good employee, then he should get a raise by working hard. I also believe it should be raised, because it would make minimum wage workers feel more important if being paid more. To solve the controversy, the minimum wage should stay the same or, the government should have a scheduled raise on the minimum…

    • 1017 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    04.02 Assignment 2

    • 551 Words
    • 3 Pages

    Third, many people believe that raising the minimum wage hurts businesses, and this is a big argument against raising the minimum wage. Research has shown that this is not true. As the minimum wage increases, the rate of employee turnover decreases. Raising the minimum wage encourages people to stay at their workplace for a longer amount of time. The decrease in employee turnover also saves business and corporations millions of dollars…

    • 551 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    By focusing on just receiving the higher wage and having more spending money, most American people in the labor force overlook the immense amounts of issues that come with a minimum wage increase. They claim that only positive aspects will result in the increase; the more money that people receive, the happier they are. Although that does hold true, they must learn the consequences of the wage increase. The people must realize that if there is indeed an increase, that some of them will result in the unemployment business. Whereas the others that are lucky enough to still possess a job receive a decreased number of hours to work.…

    • 2038 Words
    • 9 Pages
    Improved Essays
  • Superior Essays

    The minimum wage debate has been a disputed topic in the United States for many years since it was first implemented. In 1938, President Franklin D. Roosevelt signed a bill allowing for a federal minimum wage to be set (Grossman 1). 70 years later, many minimum wage workers and other government officials want to implement a 15 dollar per hour minimum wage. While the current federal minimum wage is $7.25 an hour, the negative impact of the economy explains why it should stay that way, if not be reduced or eradicated. In states that have implemented a higher minimum wage, there are already statistics to prove the economic decline.…

    • 1503 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    Why Minimum Wage Should Not Be Raised: Minimum wage is one of the most discussed topics in the U.S, whether or not it should be raised or lowered. It has drastically increases since it first started at 0.25 in 1938 (Politics of minimum wage) to now 7.25 in 2009 (Politics of minimum wage). Despite the poverty rates in America, minimum wage should not be changed, because it will just be an accessory to raising production cost. Raising minimum wage would not necessarily ruin the economy, but it would raise the production costs and the pay for every employee, not only would it raise production cost, but it would also lower employment rates and raise hours worked by one person. If the employee does not meet the requirement, then the company’s revenue…

    • 349 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    The Minimum Wage Debate

    • 278 Words
    • 2 Pages

    With the 2016 presidential election quickly approaching, the minimum wage has become a hot issue of debate among both Democratic and Republican candidates. Due to vast the social justice and economic implications contained in the idea of minimum wage laws, opinions on the issue range across a wide spectrum. First, there are those who are proponents of a minimum wage as a means of combating income inequality and promoting economic belief. Typically, proponents see a raise in the minimum wage as an opportunity to stimulate the economy by providing people with more money to spend in the economy, decreasing the expenses and need for social welfare programs and allowing businesses to hire more people and increase revenue through increased consumer…

    • 278 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    One of the main arguments used against increasing the minimum wage is that it would force businesses to fire workers which in turn would lead to a raise in the unemployment rate. Although this may be the case for some businesses, raising minimum wage would actually lead to a boost in economic activity and create more jobs nationwide, a study conducted by procon.org showed that “a minimum wage increase from the current rate of $7.25 an hour to $10.10 would inject $22.1 billion net into the…

    • 782 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    Increase Minimum Wage

    • 277 Words
    • 2 Pages

    Lately in the United States a very controversial topic has been minimum wage. Many people within the country argue whether or not it should stay the way it currently is or have an increase in how much it pays. I believe there should not be an increase to minimum wage. If there is an increase to minimum wage many fast food places would be encouraged to speed up the process of automating their ordering service to be able to save money by not having to pay workers. An increase to minimum wage will also cause job opportunity for low skilled workers and then harder to find a job that would be better for them to be able to live well.…

    • 277 Words
    • 2 Pages
    Decent Essays
  • Superior Essays

    Minimum Living Wage

    • 1428 Words
    • 6 Pages

    If the federal minimum wage were to be raised to a living wage, companies who are paying employees a couple of dollars above the current minimum wage would have to increase the wage of those employees to a wage higher than the new minimum wage. This would result in significant reduction for businesses to higher new employees because of the cost to keep them employed. James Sherk and David Cooper, who are the authors of “Should the Federal Minimum Wage Be Increased?” examine the pros and cons to raising minimum wage. In their article, while examining the downfalls to increasing the minimum wage, they say, “Raising the minimum wage will price less productive workers out of such jobs” (Sherk, James and Cooper, David). In this part of the article, they are making a point that if the minimum wage is raised, restaurants such as McDonalds will lay off their workers who are less productive.…

    • 1428 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    Raising Minimum Wage

    • 535 Words
    • 3 Pages

    The minimum wage increase should be should really be thought before the government decides to raise it. Raising minimum wage will be an overall disaster for America. Raising minimum wage is the wrong idea for America because it will cause great distress for small businesses and will increase the amount of unemployed people, due to job loss. An increase in minimum wage will cause a lot of negative effects to small business.…

    • 535 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    Damaging Consequences of Raising the Minimum Wage Who wants to earn more money for performing the same work? Most of the working population would say “sign me up”. An often-debated way to accomplish this would be for the federal government to raise minimum wage. While on the surface, this simple idea may sound like a win-win proposition; but when logic and simple economics are applied, the result is a lose-lose proposition. Raising the federal minimum wage can actually have adverse effects on the economy and the portion of the work force that it is intended to help.…

    • 2029 Words
    • 9 Pages
    Great Essays
  • Improved Essays

    “The minimum wage is something Franklin D. Roosevelt put in place during the great depression. I don’t think it worked then, it didn’t solve any problems then and it hasn’t solved any problems in 50 years.”-John Raese A person working at minimum wage would have no choice but to rely on government assistance such as food stamps or welfare to get by and make ends meet in life. Their income alone would not be enough for all the necessary things we need to survive, such as food, utilities, healthcare and the whole nine yards.…

    • 770 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Abstract Minimum wage in my opinion is a staple of the United States economy. It was first used in the United States in nineteen thirty-eight, and at that time the minimum wage was twenty-five cents, which at the time had the same value as four dollars now (Department). The guidelines it provides helps to keep pour economy running, but it doesn’t benefit everyone. The lack of unity between states when it comes to this economical aspect is a critical factor in determining the wellbeing of the United States citizens. Overview…

    • 1617 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    Minimum wage is described as the lowest price which workers can sell their labor and the lowest price which employers can pay their workers. In the United States, raising the minimum wage has become a prominent economic and social issue. The social class divide seems to be getting larger and a stagnant minimum wage is not a solution to income inequality in the United States. There are many proponents and opponents of the issue today, with both sides presenting strong arguments to successfully justify their positions. For the most part leading economic experts are torn, they have discovered evidence to support both sides of the issue.…

    • 1141 Words
    • 5 Pages
    Improved Essays