The Minimum Wage Should Be Increased Essay

1623 Words Feb 24th, 2016 null Page
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 readers to consider who pays for the minimum wage and who benefits. When considering minimum wage, the other factors within a labor market need to be considered: means-tested in-work benefits, income tax, and national insurance (Freeman 1996).
I know that many believe that the research against minimum wage is inaccurate because it mainly deals with wage effects of teenagers and there is a public bias; but I, along with Brown et al. (1982) and Neumark and Wascher (2007), do not agree. I strongly believe there is biblical evidence against having a minimum wage that should be considered by policymakers before taking action in either direction.
In reference to the poor allocation of resources, I am referencing the workers that will lose…

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