With the presidential nominations taking place, many issues that citizens find important are being discussed throughout the nation, of these includes the high poverty rate and whether an increase in minimum wage would be the proper solution to this crisis. To many an increase in minimum wage seems to be the obvious solution as it would put more money in more pockets, however the opposition of this discussion argues that there is much more to consider when committing such action, such as the effects on the economy as a whole. Those against the increase find that the effect would cause more damage than already present; as the minimum wage rises, the less business want to spend on labor, thus an increase in unemployment. In addition, they also
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According to the Employment Policies Institute (EPI), no evidence displaying that a higher minimum wage would reduce poverty. In fact, economists have found that many people living in poverty would not benefit from higher wages due to fact that many do not work, many workers earning minimum wage would do not live in poverty, and raising minimum wage would reduce the demand for employees with little to no experience (“Can”). It is revealed that 54.7 percent of “poor, less educated individuals between 16 and 64 do not work” (“Can”). It is concluded that an increase in minimum wage would not be the answer to the high poverty rate, however the Earned Income Tax Credit would decrease poverty by one percent for every one percent that the EITC is increased (“Can”). Also, this alternative would encourage more individuals to become employed because the credit is only offered to those with earned income …show more content…
From the analysis it is found that “the average family income of a beneficiary of a wage hike to $9.80 is $50,662”, which contradicts that claim that the average family income is $15,080 provided by supporters of the wage increase (“The”). Therefore, the increase in wages would not be helping the family in poverty that it was meant for, but rather a family that is already living on a manageable
According to the Employment Policies Institute (EPI), no evidence displaying that a higher minimum wage would reduce poverty. In fact, economists have found that many people living in poverty would not benefit from higher wages due to fact that many do not work, many workers earning minimum wage would do not live in poverty, and raising minimum wage would reduce the demand for employees with little to no experience (“Can”). It is revealed that 54.7 percent of “poor, less educated individuals between 16 and 64 do not work” (“Can”). It is concluded that an increase in minimum wage would not be the answer to the high poverty rate, however the Earned Income Tax Credit would decrease poverty by one percent for every one percent that the EITC is increased (“Can”). Also, this alternative would encourage more individuals to become employed because the credit is only offered to those with earned income …show more content…
From the analysis it is found that “the average family income of a beneficiary of a wage hike to $9.80 is $50,662”, which contradicts that claim that the average family income is $15,080 provided by supporters of the wage increase (“The”). Therefore, the increase in wages would not be helping the family in poverty that it was meant for, but rather a family that is already living on a manageable