The goal of minimum wage is to help alleviate low-waged families out of poverty (Stigler 1946). I do not, along with many other economists, believe that minimum wage successfully achieves its goal. Therefore, I would challenge the Senator of New York to consider getting rid of minimum wage, instead of worrying about increasing or decreasing the minimum. The main reasons that the minimum wage cannot fully help alleviate those in poverty is due to poor allocation of resources, the different ways wages are variant, and the overall family income not increasing due to a minimum wage increase (Stigler 1946). When deciding if the minimum wage should be increased, or more importantly, if there should even be a minimum wage, I would strongly urge the
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And Who pays for minimum wage? The answer to the former would be those already employed, mainly women and teenagers (Freeman 1996). Are those already employed, most likely individuals or families not in poverty, the people that are the aim of the minimum wage? I do not believe so. The answer to the latter would be those who buy the products from the businesses that employ minimum wage workers or the low-skilled workers who lose their jobs take the burden for minimum wage (Freeman 1996). The consumers affected would most likely be the upper class and the workers who benefitted from the minimum wage, both not a huge concern in my opinion. The main concern to me is the low-skilled workers who lose their jobs due to minimum wage. With increased minimum wage, employers take the higher-skilled workers, causing the low-skilled works to become jobless. The exact group the minimum wage is trying to help, it …show more content…
These two economists believe that most of the research against the minimum wage heavily focuses on the effect on teenagers and not the lower class (Card and Krueger 1995). There example of the focus on teenagers is an article by Brown, Gilroy, and Kohen in 1982. I read that article, and it has a section that focuses primarily on the effects of minimum wage on teenagers, but it also has sections that focus on the effects on adults as a whole and low-wage industries and labor markets (Brown et al. 1982). They disregarded two sections to prove their point. Card and Krueger also believe individuals are not in favor of minimum wage due to public bias (1995). These two economists claim that the pioneering research against minimum wage was not necessarily statistically significant and therefore unsuccessful; their concern is that many researchers in the present use this “unsuccessful” research as their baseline (Card and Krueger 1995). Neumark and Wascher analyzed research done by many economists and discovered that in recent years there is more statistically significant research in favor of a positive correlation between the minimum wage and disemployment than in favor of the positive employment from minimum wage
And Who pays for minimum wage? The answer to the former would be those already employed, mainly women and teenagers (Freeman 1996). Are those already employed, most likely individuals or families not in poverty, the people that are the aim of the minimum wage? I do not believe so. The answer to the latter would be those who buy the products from the businesses that employ minimum wage workers or the low-skilled workers who lose their jobs take the burden for minimum wage (Freeman 1996). The consumers affected would most likely be the upper class and the workers who benefitted from the minimum wage, both not a huge concern in my opinion. The main concern to me is the low-skilled workers who lose their jobs due to minimum wage. With increased minimum wage, employers take the higher-skilled workers, causing the low-skilled works to become jobless. The exact group the minimum wage is trying to help, it …show more content…
These two economists believe that most of the research against the minimum wage heavily focuses on the effect on teenagers and not the lower class (Card and Krueger 1995). There example of the focus on teenagers is an article by Brown, Gilroy, and Kohen in 1982. I read that article, and it has a section that focuses primarily on the effects of minimum wage on teenagers, but it also has sections that focus on the effects on adults as a whole and low-wage industries and labor markets (Brown et al. 1982). They disregarded two sections to prove their point. Card and Krueger also believe individuals are not in favor of minimum wage due to public bias (1995). These two economists claim that the pioneering research against minimum wage was not necessarily statistically significant and therefore unsuccessful; their concern is that many researchers in the present use this “unsuccessful” research as their baseline (Card and Krueger 1995). Neumark and Wascher analyzed research done by many economists and discovered that in recent years there is more statistically significant research in favor of a positive correlation between the minimum wage and disemployment than in favor of the positive employment from minimum wage