Is It Time to Give America a Raise?
“ If raising the minimum wage to $15 per hour will raise the standard of living for the working poor, why stop there? Why not raise the standard of living for middle class as well by increasing minimum wage to $25 an hour? If we raised it to $100 an hour, we could have the best standard of living in the country! ”
These sarcastic words put forward by Summers Adam; Orange County Register clearly indicates that increasing minimum wage is nothing but death of common sense. Raising the minimum wage is like a vicious little circle - government increases the minimum wage, leading to increase in price of services, commodities, taxes and therefore, back to square one. However, many Americans happen to believe …show more content…
Minimum wage laws mostly harm teenagers and young adults because they typically have little work experience and take jobs that require fewer skills. As the minimum wage increases it becomes very hard for small business owners to employ a large number of staff. It is then only convenient for them either to increase the price of their commodities and/or fire their low skilled workers.
CBO examined the budget impacts of raising the minimum wage to $9 and $10.10. The report concluded that a $9 increase would lift 300,000 workers above the poverty line, but cost 100,000 new jobs as employers are expected to reduce workforces to make up for higher wages. A $10.10 increase would lift 900,000 workers above the poverty line, but cost 500,000 jobs. (Susan Davis, USA Today, Para …show more content…
There is abundant evidence that a 10 percent increase in the minimum wage leads to a 1 to 3 percent decrease in employment of low-skilled workers (using teens as a proxy) in the short run, and to a larger decrease in the long run, along with rising unemployment. (James Dorn, Forbes, Para 4)
In addition to unemployment, teenagers even lose interest in studies and hence drop out from high school/colleges. For example, if minimum wage is increase to $15 per hour from $7.25 per hour naturally students who are in dire need of money will seem dropping out of college as a feasible option. With fewer jobs to go around and a greater number of dropouts, some newer dropouts take jobs from the less-educated and lower-productivity teens that had already left school. (David R. Henderson, National Center for Policy Analysis, Para 7)
Another vital reason for not increasing minimum wage is inflation. Now, what is
Sagar 3 inflation? Inflation is a situation where prices of general goods and services increase which inturn leads to decrease in purchasing value of money. As inflation rises, every dollar you own buys a smaller percentage of a goods or service. For example, if the inflation rate is 2% annually, then theoretically a $1 pack of gum will cost $1.02 in a year. Which infers that, after inflation your dollar can’t buy the same good as it could
“ If raising the minimum wage to $15 per hour will raise the standard of living for the working poor, why stop there? Why not raise the standard of living for middle class as well by increasing minimum wage to $25 an hour? If we raised it to $100 an hour, we could have the best standard of living in the country! ”
These sarcastic words put forward by Summers Adam; Orange County Register clearly indicates that increasing minimum wage is nothing but death of common sense. Raising the minimum wage is like a vicious little circle - government increases the minimum wage, leading to increase in price of services, commodities, taxes and therefore, back to square one. However, many Americans happen to believe …show more content…
Minimum wage laws mostly harm teenagers and young adults because they typically have little work experience and take jobs that require fewer skills. As the minimum wage increases it becomes very hard for small business owners to employ a large number of staff. It is then only convenient for them either to increase the price of their commodities and/or fire their low skilled workers.
CBO examined the budget impacts of raising the minimum wage to $9 and $10.10. The report concluded that a $9 increase would lift 300,000 workers above the poverty line, but cost 100,000 new jobs as employers are expected to reduce workforces to make up for higher wages. A $10.10 increase would lift 900,000 workers above the poverty line, but cost 500,000 jobs. (Susan Davis, USA Today, Para …show more content…
There is abundant evidence that a 10 percent increase in the minimum wage leads to a 1 to 3 percent decrease in employment of low-skilled workers (using teens as a proxy) in the short run, and to a larger decrease in the long run, along with rising unemployment. (James Dorn, Forbes, Para 4)
In addition to unemployment, teenagers even lose interest in studies and hence drop out from high school/colleges. For example, if minimum wage is increase to $15 per hour from $7.25 per hour naturally students who are in dire need of money will seem dropping out of college as a feasible option. With fewer jobs to go around and a greater number of dropouts, some newer dropouts take jobs from the less-educated and lower-productivity teens that had already left school. (David R. Henderson, National Center for Policy Analysis, Para 7)
Another vital reason for not increasing minimum wage is inflation. Now, what is
Sagar 3 inflation? Inflation is a situation where prices of general goods and services increase which inturn leads to decrease in purchasing value of money. As inflation rises, every dollar you own buys a smaller percentage of a goods or service. For example, if the inflation rate is 2% annually, then theoretically a $1 pack of gum will cost $1.02 in a year. Which infers that, after inflation your dollar can’t buy the same good as it could