Minimum Wage Pros And Cons

Improved Essays
Introduction: In this research paper I am going to be talking about minimum wage. According to our
Textbook definition of minimum wage by (Miller), “minimum wage is the lowest hourly wage rate that firms may legally pay their workers. This ensures that individuals are not being under paid by companies. I chose the topic of minimum wage for a variety of reasons. Minimum wage affects many individuals in our nation and throughout the world. It affects the majority of adolescents seeking part time jobs in high school and attending a university or community college. Since, I am currently in college who worked part time last semester I thought it would be beneficial for me to do some research on the topic of minimum wage. I am looking for how
…show more content…
To reiterate what minimum wage means it is the lowest hourly wage that corporations can legally pay their employees. I came across several articles and sources that involves minimum wage and show the effect it has on the economy. A source that I found online called “Should the Federal Minimum Wage Be Increased” this source goes over all of the pros and cons of raising the minimum wage rate. According to this source, if the minimum wage rate were to rise; companies would have to lay employees off. Raising the minimum wage will mostly affect middle class citizens. The one percent of the population who is upper class will not be affected if the minimum wage rate rose. That shows that many individuals would be affected if the minimum wage were to rise. On another note, it displays that raising the minimum wage could have a positive effect on the economy. It is stated that a higher minimum wage will actually create more jobs for individuals and increase economic activity. Most individuals who are making minimum wage are working in the fast food …show more content…
First, the individuals who obtain employment will have a pay boost. For other individuals this will result in unemployment for them. This shows how some people will be better off by this and other individuals are worse off by the rising of minimum wage. This is because the companies will not be able to obtain as many employees if the rate of minimum wage were to rise. The graph below was taken from the Pearson textbook and shows the effect of raising the minimum wage. The graph demonstrates that there is a reduction in the quantity of labor demanded. This means that there was a decrease in the amount of jobs available. There would be an excess amount of workers available causing unemployment. There will be too many workers available and not enough jobs for the supply of workers. This shows a negative impact that raising the minimum wage would cause to the

Related Documents

  • Decent Essays

    In the reading of Minimum wage and magical thinking he discusses that raising the minimum wage would have a negative impact and would actually hurt those that it is supposed to help and I would agree. Raising the minimum wage would cause inflation to rise, thus basically canceling out what it was intended to do and making the US dollar worth less. Secondly, minimum wage increase would cause the price of goods to rise and then less people will be buying so, then you are paying employees more and making less revenue. Lastly, this would hurt the very people that raising the minimum wage is intended to help because the number of jobs that are entry level or low skilled will drop and then people who were making a 7.25 minimum wage will now be…

    • 810 Words
    • 4 Pages
    Decent Essays
  • Improved Essays

    Keeping The Minimum Wage

    • 1057 Words
    • 5 Pages

    According to Forbes, the keeping the minimum wage the same provides young people with a starting point, and gives enough income to sustain a low-cost lifestyle (Forbes, 2012). The lower income is seen as a “take off” point for many young workers. Forbes argues that the minimum wage jobs aren’t meant to be seen as a career, but rather create that hunger for advancement in the workplace. Forbes also explains that the minimum wage allows employers to budget more workers into their staff because of the lower pay rates. This, in turn, creates more jobs for the economy.…

    • 1057 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Through my research, I have found out that there is going to be more harm than done if we increase the minimum wage. There will be many problems that will occur if we raise the wages. First off, raising the wage is unethical. Raising the wage would result in many people quitting because of new worker’s pay jumping up close to those of experienced workers who have worked their way through the system. Also, and most importantly, raising the wages would result in a great loss of jobs available in the workforce due to labor being too pricey or laborers getting replaced by cheaper technology.…

    • 1381 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    Clemens found that an increased minimum wage had negative impacts on both employment and income growth. Following an increase in minimum wage, workers saw a reduction in access to obtain more work experience and as a result their income stagnated. The increased minimum wage actually reduced the chances of low skilled workers being able to transition into the lower middle class bracket. Clemens is skeptic about raising the minimum wage, as he believes an increase would limit the economic prosperity of low wage…

    • 1141 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    The government should increase the minimum wage so people can make a livable wage to support themselves financially and it would help for single parent families. Today there are debates whether the minimum wage increase makes society better off or make it worse. Some economist believes raising the minimum wage can move society away from the poverty line, and it has been a proven way to boost our economy. The evidence that economist received from analyzing the minimum wage is it that it does not lead to higher unemployment rates. Rather than increasing unemployment rate it has shown to increase productivity.…

    • 1024 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Minimum Wage Madness

    • 1272 Words
    • 6 Pages

    Minimum Wage Madness Raising the minimum wage sounds great to many citizens across the United States. More money is always better, but is raising the minimum wage really the best thing for America 's economy? Many questions are asked on how this will affect jobs and if it will help our economy grow. Whether it would be a benefit to our economy or not. How will it impact people living in poverty?…

    • 1272 Words
    • 6 Pages
    Superior Essays
  • Superior Essays

    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.…

    • 2500 Words
    • 10 Pages
    Superior Essays
  • Improved Essays

    When the government imposes a higher minimum wage, employers face higher labor costs and are forced to respond by decreasing other production expenses. Increasing the minimum wage benefits those who already have a job at the expense of the unemployed. However, employees will not experience the full benefit of a minimum wage increase since businesses raise prices to compensate for the increase in labor costs. Minimum wage increases job loss, poverty, prices, and harms low-skilled workers. Minimum wage does not keep families out of poverty nor does it promote economic growth.…

    • 811 Words
    • 4 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

    Minimum Wage Rejection

    • 1087 Words
    • 5 Pages

    Supporters say it will help the economy but the facts just are not there. A minimum wage increase will only help a handful of people and the people it will help are not the people who need it. What people do not realize about increasing wages is that it will raise the cost of living at an even faster rate. An increase will also make the value of the dollar go down and there will be inflation, causing the cost of goods to go up, making a minimum wage increase irrelevant because workers will be right back to where they started. Higher wages will make it harder for people to get jobs and that is not helping the unemployment issue.…

    • 1087 Words
    • 5 Pages
    Improved Essays