Minimum Wage, And Unemployment - 1673 Words

Minimum Wage Hikes and Unemployment Many fast food workers and minimum wage employees have been protesting recently, in hopes of increasing the federal minimum wage. States such as Seattle, that have already increased the minimum wage to $15 per hour, and California, that has approved a bill that will change the minimum wage to $13 per hour in 2017, have already jumped on board with the movement. President Obama and many other protesters around the country who are fighting for the increase in the minimum wage believe that the raise will decrease poverty among Americans and provide a stable income to support a family, or serve as a livable wage (Lee). Instead of creating a positive impact on those in need, increasing the minimum wage will affect the lives of lower-income, lower-skilled workers in a negative way. According to conventional economic analysis, employment levels for lower-income workers in jobs such as fast food, or any job that pays minimum wage, have steadily decreased with the rises in the wage (â€Å"Ef fects of Raising†). While it will negatively affect the lower-income workers, the other half of Americans who work for higher wages and are not in poverty, will have increased incomes (â€Å"Effects of Raising†). Raising the wage will not produce the desired outcome and will consequently make the situation worse. Also, these types of jobs are not meant to be supporting families or be a livable wage. These jobs are stepping stones for teens and young adult workers to gainShow MoreRelatedImpact Of Minimum Wage On Unemployment1305 Words   |  6 PagesImpact of minimum wage on unemployment The supply and demand factors show significance towards growth of unemployment. It has been observed that the price floor above equilibrium wage should cause unemployment. There are many people who have provided their arguments against the fact. However, it has been observed that whenever there has been a rise in the minimum wage of workers, unemployment rate goes very high. For example, an organization has to maintain its expenses as well as its incomes.Read MoreMinimum Wage Should Increase Unemployment996 Words   |  4 Pagesrepresents the people, you should raise minimum wage. It is all about the people, and making society a better place. Theoretically, minimum wage should decrease unemployment, close racial gaps, enable families to take care of basic necessities, and would somehow make the world a better place. However, theories are ideas, intended to explain a situation; they are not facts, they are not constant, and they can be wishful thinking. Therefore, an increase in mi nimum wage does not ensure these privileges. ThereRead MoreA Brief Note On Unemployment And Minimum Wage Essay1818 Words   |  8 PagesUnemployment and Minimum Wage Both the microeconomics and the macroeconomics theories dictate that an increase in the minimum wage will directly impact the rate of unemployment by shooting upwards. As of the moment, there is a heated debate on whether the Congress should pass a bill that seeks to increase United States minimum wage. The consequent change will eventually have both positive as well as negative impacts on various economical aspects particularly unemployment. As for this paper, theRead MoreEssay on Raising Minimum Wage Increases Unemployment1420 Words   |  6 Pageshelps families make ends meet like higher wages. †¦ And to everyone in this Congress who still refuses to raise the minimum wage, I say this: If you truly believe you could work full-time and support a family on less than $15,000 a year, go try it. If not, vote to give millions of the hardest-working people in America a raise.† -–President Obama, State of the Union address, Jan. 20, 2015 President Barack Obama is renewing his call to raise the minimum wage to $10.10. During a speech at a manufacturingRead MoreLink between Higher Minimum Wage and Higher Unemployment1179 Words   |  5 PagesIn theory when an increase in minimum wage increases the cost of low-wage workers firms should want to hire less workers, however in reality this basic theory might be wrong according to Plumer B. (2013) While some studies found a link between higher minimum wage and higher unemployment level many others such as a recent paper from U.C. Berkeley that exploited differences across state borders did not find a link between higher minimum wage and higher unemployment. A study by John Schmitt of theRead More Do Minimum Wage Laws Increase Unemployment? Essay1188 Words   |  5 Pagescurrent minimum wage, as set by federal law, is less than $15 per hour. Is this enough for any person to provide for themselves and their family? Laborers earning the minimum wage dont seem to think so and are wanting an increase in the required minimum wage so they will be paid more by their employers. The Bureau of Labor Statistics reported in 2015 that 3.6 million workers earned below or at the minimum wage (Minimum Wage Workers). At first it sounds wonderful for minimum wage workers toRead MoreMinimum Wage And Its Effect On The Economy1015 Words   |  5 Pagesthe unemployment rate. The increasing of unemployment rate is caused by some reasons, and one of the problem that causes the high unemployment rate is the issue of minimum wage. Depending on the states in U.S., the price of minimum wage is different, but the low minimum wage may cause the economic condit ion worse. Minimum wage is the lowest wage that an employer is allowed to pay. This wage is regulated by the law, so all workers must follow this rule. According to the book, â€Å"Minimum Wages†, theRead MoreA Brief Note On Raising Minimum Wage1088 Words   |  5 PagesBrendan Mason Mrs. Scruggs 08/07/15 Raising minimum Wage There is always talk about the problems of North Carolina’s economy, and these problems then become publicized and put throughout the media, informing people on the condition of their state’s economy. A popular topic lately is the state’s minimum wage, and whether it should be raised or if we should keep the current minimum wage. Usually, opinions vary on what to do about minimum wage, however there certainly seems to be a larger group ofRead MoreThe Positive and Negative Effects of Raising Minimum Wage805 Words   |  4 Pagesincome. Many people’s income relies on minimum wage. In 2012, 3.6 million people received an hourly pay at or below minimum wage. There is an ongoing debate in government as to what the minimum wage should be. Stuck at $7.25, Obama has suggested raising the minimum wage to $9.00. Depending on a person’s perspective, raising minimum wage could be positive or negative. Minimum wage has the ability to change lives, and change t he economy. Small businesses and unemployment, teenage demographics, and the costRead MoreRaising The Minimum Wage?1575 Words   |  7 PagesThe issue of raising the minimum wage from $7.25 to $15 an hour is a heavily debated topic. Both sources against or in favor of the minimum wage refer to a â€Å"growing gap† between low-income workers and high-income earners. Sources against the minimum wage believe raising it will increase this gap, whereas those in favor of the minimum wage believe it will decrease this gap. The arguments in favor of the minimum wage rely mostly on ethical beliefs, such as â€Å"pay should reflect hard work,† to advance