Raising The Federal Minimum Wage Essay
The purpose of minimum wage is to ensure that workers can provide basic amenities to themselves and their families. Workers cannot live above the poverty line when minimum wage is not proportionate with the cost of living. It is beneficial to society and individuals for minimum wage to match living costs.
Opponents of minimum wage contend that it is not the best way to combat poverty. They note that a high minimum wage causes unemployment, encourages teenagers to drop out of school and prevent unskilled workers from getting the on the job training they need. Also minimum wage points out that the minimum wage is a poorly targeted policy. The effect of minimum wage is if the wage rate is higher than the marginal revenue product of labor the employers will higher less labor. Whenever minimum prices are set above the marker equilibrium they result in a surplus which is also unemployment.
I believe that both sides have good arguments for whether the minimum wage should be raised or not. Those who favor the minimum wage believes that it will reduce poverty with no loss in jobs and those who oppose the increase in minimum wage believe that it…