Arguments For Raising The Minimum Wage

1843 Words 8 Pages
In the last 8 years there have been protest for and against raising the minimum wage. Although this may seem like a good idea there are those who believe that this will result in job loss, increase in poverty, and encourage companies to outsource their jobs. There are also people that believe that the minimum wage has not kept up with inflation. Therefore, most Americans believe that if the government was to increase the minimum wage it will help people get out of debt, strengthen the workforce and the economy. The minimum wage should not be raised in California. Not increasing the minimum wage would encourage people to go back to college and get an education. Not raising the minimum wage would be the best thing the government can do for …show more content…
Companies pay for productivity, neither McDonald’s, Walmart, 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. Raising the wage will make it more expensive to hire younger and low-skill workers. When people are payed more generally more than likely would be college graduates. With companies paying employees more than the minimum wage, companies are going to to be forced to hire smarter, and more educated people rather than giving a non graduate person a chance. Therefore, “some have put forward the idea that our focus should be on increasing the skill level of our workers, through retraining programs and educational support. The idea that better skilled workers would create more jobs is unlikely seeing that so few goods are still manufactured in America (Olen)”. Evidence of job losses have been found since the earliest imposition of the minimum wage. “The first 25-cent minimum wage in 1938 resulted in significant job losses. A 2006 review of more than 100 minimum wage studies by David Neumark and William Wascher found that about two-thirds found negative employment effects. In 2010, Joseph Sabi estimated “nearly 1.3 million jobs will be lost if the federal minimum wage is increased to $9.50 per hour.” (Zwolinski).” With so many people losing jobs there will be a significant number …show more content…
If companies have the choice to pay their worker more or to move the company they will more than likely to outsource their companies. There is a growing concern that increasing the minimum wage would result in more businesses outsourcing their jobs overseas where workers are paid much less than $4 an hour let alone $10. People fear that if the companies are forced to pay workers more than $10 and hour, companies will ship jobs overseas for lower overheads costs than pay more for workers here. “As well-paying manufacturing jobs have left America, low skill workers have turned to low paying service jobs, filling the roles that used to be filled by teenagers and high school dropouts. The majority of new jobs created now are in the service sector. Last month alone 24,000 of the jobs created were in hotels and restaurants. Even having a good educational background has not helped as more than half of recent college graduates are jobless or underemployed (Olen)”. Jobs are being outsourced as I speak, but with the minimum wage raised there is no doubt that more jobs are going to be loss. As of 2016 we hear in the news about factories going to Mexico, China, India, this is happening with the minimum wage being at $9 an hour. If the minimum wage is raised to $15 an hour this is going to make other companies that have never consider moving second guess whether to stay

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