Minimum Wage Increase

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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 find that the increase would not very much affect those living in poverty as research shows that there is a definite lack of employment within this class. In an attempt to contest the opposition, supporters of the increase provide the opposite information which shows that it would not in fact decrease employment in such a way that would hurt the general economy. Also, they find that the increase would cause a substantial decrease in inequality taking place in the economy between the differences in gender and race. Through the evidence that has been provided from each side, it is apparent that neither increasing nor not changing the minimum would decrease the level of poverty, however decreasing the poverty level would cause the level of poverty to fall deeper than it has reached. Therefore, not increasing the minimum wage would lead to a more effective way of decreasing poverty and inequality to be implemented rather than if it should choose to increase these wages. Those who oppose an increase in minimum wage find that this action would not reduce poverty in the way that their opposing side believes it would. …show more content…
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 (“Can”). Furthermore, EPI’s analysis of three different minimum wage increase proposals, the “Fair Minimum Wage Act of 2012”, the “Rebuild America Act”, and the “Catching Up to 1968 Act of 2012”, found that the poverty-stricken families …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

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