Increase Minimum Wage Essay

1082 Words 4 Pages
An increase in minimum wage has been a debated topic for decades upon decades. If raised, would the effects be damaging or helpful in relation to employment and how working families would be affected if such an increase in minimum wage was to occur.
Employment, in terms of employment rate, could go either up or down. If the minimum wage was increased by 10%, than it would come with a 4.6 to 9% decrease in employment. This being a consequence of raising the meaning wage, a lack of job creation would follow. Based off experience and qualifications, job creation would have a substantial decrease, employers would also subside from hiring new employees based of an increase in minimum wage; though increasing the minimum wage could result in closing
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It promotes a basic living that low-income families can base an income off, provide food for their family, and a shelter over their heads (Pros & Cons: Minimum Wage). A minimum wage increase would also affect business as well, if raised; the Federal Budget could include a reduction of real income seen by business owners (Effects on minimum wage increase on employment/family income).
Working families will also witness substantial changes based off the minimum wage being increased. CBO (Congressional Budget Office) projects that increased wages, meaning higher hourly wages, could increase the total amount a family will bring in on an annual basis, though some lower wage job titles could possibly be removed, causing some family income to plummet. There are two options that have been observed by economic and financial experts, these being a $9.00 per/hour option and a $10.10 per/hour option. The $9.00 per/hour option would raise the federal minimum wage from $7.25 per/hour to $9.00 per/hour, this meaning no state minimum wage can fall below the federal minimum wage, which in this case would be $9.00
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If increased, it would indirectly raise the amount of some goods and services that are obtained through payment by the government. This happens based off a small number of hourly worker that are paid by the Federal Government. Federal benefits, of certain types, would be offered in smaller amounts for workers with increased earning, though their pay in taxes would ultimately rise. Federal spending and taxes would also be affects indirectly, based off increases or decreases in real income for families. Even businesses would be affected; business owners and consumers could witness higher overall prices and a reduction in real income (Effects on minimum wage increase on employment/family income). Furthermore, the Economic Policy Institute estimates that a whopping 14.2% of workers in the U.S., based off an increased minimum wage, with 88.3% of the total 14.2% affect being at least the age of 20 years old. They also estimate that 23.3% of total children in the U.S. have a parent who would garner more benefits from an increase in minimum wage (Essrow and

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