What Are the Alternatives to Raising the Minimum Wage?
There are other ways to help low wage workers besides raising the minimum wage. Glaeser (2013) explains the benefit of using earned income tax credit. Earned income tax credit is a refundable type of tax. Glaeser explains that if people can keep more of their money then the poor would be motivated to work more. The government is in favor of raising the minimum wage because it is easier to drop the costs on employers. It is easier for the government because it doesn’t have to maintain and regulate how income tax credit is dealt with. Earned income tax credit is not a lucrative idea to the government since it comes out of the government’s pockets. A benefit of earned income tax credit is …show more content…
Hallenbeck (2014) describes the success of funding job training programs in Eastern Connecticut. 13,800 jobs were created in the span of 2 years because of the funding. The program influenced more than 150 employers to get involved. The businesses who got involved opened more job positions. John Beauregard, executive director of Eastern Connecticut workforce investment board, talks about job creation. A job created in the manufacturing sector creates another job in the service sector. The reason for this is because employed people create more demand for services. Hallenbeck goes further in detail how job training programs increase wages. Workers become more valuable to employers, which leads to more pay. According to Hallenbeck (2014), “though also a supporter of the proposed minimum wage hike, Tony Sheridan, president and chief executive officer of Eastern Connecticut, said the state’s economy needs to improve significantly before the hike would be fully implemented” (para.8). Tony Sheridan, who is a supporter of raising the minimum wage, see’s potential issues if the minimum wage takes effect to quick. A lot of jobs must be created because in the end raising the minimum wage will decrease
There are other ways to help low wage workers besides raising the minimum wage. Glaeser (2013) explains the benefit of using earned income tax credit. Earned income tax credit is a refundable type of tax. Glaeser explains that if people can keep more of their money then the poor would be motivated to work more. The government is in favor of raising the minimum wage because it is easier to drop the costs on employers. It is easier for the government because it doesn’t have to maintain and regulate how income tax credit is dealt with. Earned income tax credit is not a lucrative idea to the government since it comes out of the government’s pockets. A benefit of earned income tax credit is …show more content…
Hallenbeck (2014) describes the success of funding job training programs in Eastern Connecticut. 13,800 jobs were created in the span of 2 years because of the funding. The program influenced more than 150 employers to get involved. The businesses who got involved opened more job positions. John Beauregard, executive director of Eastern Connecticut workforce investment board, talks about job creation. A job created in the manufacturing sector creates another job in the service sector. The reason for this is because employed people create more demand for services. Hallenbeck goes further in detail how job training programs increase wages. Workers become more valuable to employers, which leads to more pay. According to Hallenbeck (2014), “though also a supporter of the proposed minimum wage hike, Tony Sheridan, president and chief executive officer of Eastern Connecticut, said the state’s economy needs to improve significantly before the hike would be fully implemented” (para.8). Tony Sheridan, who is a supporter of raising the minimum wage, see’s potential issues if the minimum wage takes effect to quick. A lot of jobs must be created because in the end raising the minimum wage will decrease