An increase in minimum wage has been a debated topic for decades upon decades. If raised, would the effects be damaging or helpful in relation to employment and how working families would be affected if such an increase in minimum wage was to occur.
Employment, in terms of employment rate, could go either up or down. If the minimum wage was increased by 10%, than it would come with a 4.6 to 9% decrease in employment. This being a consequence of raising the meaning wage, a lack of job creation would follow. Based off experience and qualifications, job creation would have a substantial decrease, employers would also subside from hiring new employees based of an increase in minimum wage; though increasing the minimum wage could result in closing …show more content…
There are two options that have been observed by economic and financial experts, these being a $9.00 per/hour option and a $10.10 per/hour option. The $9.00 per/hour option would raise the federal minimum wage from $7.25 per/hour to $9.00 per/hour, this meaning no state minimum wage can fall below the federal minimum wage, which in this case would be $9.00 per/hour. It would come about in a two-step plan through the years of 2015 and 2016, eventually having fully reached $9.00 per/hour in 2016, though data shows that the minimum wage wouldn’t be subsequently adjusted for inflation. This option could possibly lower employment by about 100,000 jobs or by less than 0.1 percent, with also a 2/3 chance of a slight increase in regards to employment and a reduction of an approximate 200,000 workers. Increased earnings based on this option for low-wage workers could total about $9 billion dollars, meaning that an estimated 7.6 million workers would accrue, on an average week, higher earnings in the second half of 2016. Average income for a family would rise by 1%, resulting in about 300,000 people being raised above the poverty threshold. Consequently though, $4 billion of real
Employment, in terms of employment rate, could go either up or down. If the minimum wage was increased by 10%, than it would come with a 4.6 to 9% decrease in employment. This being a consequence of raising the meaning wage, a lack of job creation would follow. Based off experience and qualifications, job creation would have a substantial decrease, employers would also subside from hiring new employees based of an increase in minimum wage; though increasing the minimum wage could result in closing …show more content…
There are two options that have been observed by economic and financial experts, these being a $9.00 per/hour option and a $10.10 per/hour option. The $9.00 per/hour option would raise the federal minimum wage from $7.25 per/hour to $9.00 per/hour, this meaning no state minimum wage can fall below the federal minimum wage, which in this case would be $9.00 per/hour. It would come about in a two-step plan through the years of 2015 and 2016, eventually having fully reached $9.00 per/hour in 2016, though data shows that the minimum wage wouldn’t be subsequently adjusted for inflation. This option could possibly lower employment by about 100,000 jobs or by less than 0.1 percent, with also a 2/3 chance of a slight increase in regards to employment and a reduction of an approximate 200,000 workers. Increased earnings based on this option for low-wage workers could total about $9 billion dollars, meaning that an estimated 7.6 million workers would accrue, on an average week, higher earnings in the second half of 2016. Average income for a family would rise by 1%, resulting in about 300,000 people being raised above the poverty threshold. Consequently though, $4 billion of real