Many people may ask the question would raising the minimum wage reduce poverty? The answer is no, since there are big factors that go into play when a wage increase happens. There are a lot of low wage workers that are put under the poverty line which does effect the families that are in that area where they may not be able to make ends meet with their current wages. Whenever the minimum wage limit seems to increase, inflation seems to catch up and it ends up not making a difference. The minimum wage increase will not help people in poverty since it will cause employers adjusting their employee job hours, making entry level jobs harder to find, and is making prices rise.
The first thing that employers will want to do if they want keep their …show more content…
The reason why they say that is because they have confidence from the “data from more than two decades, he concludes that “Raising the minimum wage actually tends to have a moderate-size reduction in the poverty rate”” says Dube in the article by Barbara Mantel.(Mantel, 79) There is a percentage shaved off when the minimum wage was increased and is still slowly going down. David Cooper explains in the article “Is a $15 minimum wage a boon or a risk for low-paid workers?”, “So, over that time period, we have had tremendous improvements in our ability to generate income in businesses’ profit-making potential, but workers just haven’t been seeing those benefits because we haven’t been raising minimum wages.”(PBS NEWSHOUR, 2-63) What he is saying is that the workers haven’t seen the beneficial effects of the minimum wage increase since there wasn’t any increase in wages in a long time. Overall of how they think of this situation, they are wrong since there may be some beneficial effects for a temporary short time period until prices, and taxes rise level out and end back up with where we started and there are still some people helped, but the rest still in trouble. In the article “Why a Minimum-Wage Hike Can’t Help the Poor” written by Nancy Cook, David Neumark says “Roughly one-third of Americans who earn the minimum wage live in households with earnings above the median income.”(Cook, 1) The evidence provided by an economist even says that a fraction of the people who are minimum wage workers can make it through, but the rest of that can’t are having trouble to find ways to get out of poverty. Raising the minimum wage will not help everyone in poverty, it will depend on the kind of situation each person in poverty is in, but raising the wage won’t help much and put up more
The first thing that employers will want to do if they want keep their …show more content…
The reason why they say that is because they have confidence from the “data from more than two decades, he concludes that “Raising the minimum wage actually tends to have a moderate-size reduction in the poverty rate”” says Dube in the article by Barbara Mantel.(Mantel, 79) There is a percentage shaved off when the minimum wage was increased and is still slowly going down. David Cooper explains in the article “Is a $15 minimum wage a boon or a risk for low-paid workers?”, “So, over that time period, we have had tremendous improvements in our ability to generate income in businesses’ profit-making potential, but workers just haven’t been seeing those benefits because we haven’t been raising minimum wages.”(PBS NEWSHOUR, 2-63) What he is saying is that the workers haven’t seen the beneficial effects of the minimum wage increase since there wasn’t any increase in wages in a long time. Overall of how they think of this situation, they are wrong since there may be some beneficial effects for a temporary short time period until prices, and taxes rise level out and end back up with where we started and there are still some people helped, but the rest still in trouble. In the article “Why a Minimum-Wage Hike Can’t Help the Poor” written by Nancy Cook, David Neumark says “Roughly one-third of Americans who earn the minimum wage live in households with earnings above the median income.”(Cook, 1) The evidence provided by an economist even says that a fraction of the people who are minimum wage workers can make it through, but the rest of that can’t are having trouble to find ways to get out of poverty. Raising the minimum wage will not help everyone in poverty, it will depend on the kind of situation each person in poverty is in, but raising the wage won’t help much and put up more