Pros And Cons Of Raising The Wage

2500 Words 10 Pages
Raising the Wage: Negative Outcomes.

Rachael Francisco earns just above the minimum wage working at a local fast food establishment, and she needs every penny. Like most Americans, she struggles to make ends meet, making Rachael feel like she is falling even further behind. With her current wages, getting to the point where she could scrape by paycheck to paycheck would be more of an improvement than where she is right now. Every day she wonders, do I have money for gas? My rent? Rachael, like the millions of Americans around her, thinks she needs a raise. A raise, all though small, could be the deciding factor that sends millions of Americans into joblessness and poverty.
The forty-fourth president of the United States, President Barrack
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Americans are fooled into thinking that raising the minimum wage is as simple as a law being passed. The thoughts of the nation are heavily in favor of raising the minimum wage in order to make life easier on the people using those low skilled jobs to support a family. The belief is raising the minimum wage will result in more jobs for those currently unemployed, and will get more money into the pockets of the lower and middle classes. Americans fail to realize that companies pay for productivity. Once a lower skilled worker gets a raise, the people above them will be looking for a pay increase as well. Sherk had this to say about the job market and the process of paying for productivity, “Companies pay for productivity. Neither McDonald’s nor Google nor any other firm will pay its employees more than the value they create. Higher minimum wages make it harder for unskilled workers to get started in the job market” (Sherk). Sherk’s comments warn of a future with a higher minimum wage. The truth about companies is that they pay for productivity, and a higher minimum wage will force many low-skilled workers out of a job. A minimum wage increase will only shut the door of opportunity for low-skilled workers and eventually will disallow for students to get started in the job market. David K. Shipler is the author of The Working Poor: Invisible in America and a graduate of Dartmouth University. Shipler spoke about productivity in the workplace, “Wages are set by the marketplace, and you cannot expect magnanimity from the market-place. It is the final arbiter from which there is no appeal” (p.71). The government has no place in setting wages. The final decision should rest on the companies and how much they feel a worker can bring to a business. Productivity in the workplace is a reason why a doctor makes a hundred thousand dollars while a construction worker only brings

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