http://www.epinet.org/content.cfm/issueguides_minwage
Should the United States Government raise minimum wage to keep up with the rising cost of living? Who would be the winners and the losers in the long run? Use the above site to learn about the issues.
14 comments:
Raising the minimum wage would create just as many problems as it would seemingly solve. Higher wages offered for entry-level jobs will draw more teenagers out of high school, which hurts the present work force by increasing competition for jobs and the future work force by reducing the number of skilled workers present later on. An increase in the minimum wage would increase the cost of production for a variety of products, forcing businesses to decide whether to raise prices, lay off employees, or reduce the coverage of programs offered to employees, such as health care. A rise in the minimum wage could therefore lead to an increase in unemployment and/or inflation.
Minimum wage needs to rise. Forget buying any extravagant items, but to afford the basic costs of living has become impossible. “Since September 1997, the cost of living has risen 26%, while the minimum wage has fallen in real value. After adjusting for inflation, the value of the minimum wage is at its lowest level since 1955.” How are people expected to survive? A rise in minimum wage would not only benefit those who are poverty stricken, but those who fall into the middle and/or upper class. Employees “earning slightly above the minimum would also be likely to benefit from an increase due to "spillover effects." It’s a win-win scenario that would satisfy all parties involved.
Raising minimum wage would be extremely beneficial to so many people in this country. Minimum wage, "has not kept pace with inflation," proving that it is time for it to rise. Economic Policy Institute publishes, "raising the minimum wage from $4.25 to $5.15 in 1996-97 directly improved the wages of 9% of the workforce—almost 10 million workers—and indirectly raised the wages of millions more low-wage workers." A raise in minimum wage would increase the well-being of many families across the country. In additon, a raise in minimum wage would benefit single working parents, women, and many minorities. In the long term, a raise in minimum wage would also help reduce poverty. Economists feel, "the minimum wage is a measure of how we value work in this country. It should reflect a deal society makes with every worker in America that, if you work hard and play by the rules, then you are entitled to a decent day's wages for a decent day's work." If this thought prevails, about "13 million workers" would be positively affected by an increase in minimum wage.
Minimum wage should be increased. People who work on minimum wage have to work 40+ hours a week to hardly make ends meet. The majority of those who earn minimum wage work full time; the rest work 20-34 hours per week. Finding housing in a safe, sanitary location can even be trying; most people would have to give the majority of their earnings to afford the bare necessity of housing alone. Many people have children, who have wants and needs that can be very expensive. People who work for minimum wage also tend to have very strained relationships, since they spend most of their time working; they have little free time to build healthy, loving relationships. The basic value of life is lost for those who are required to spend over half of every day at work and are still barely scraping by.
There are more benefits to raising minimum wage than there are losses. For example, with an increase in minimum wage 10% of the workforce benefits either directly or indirectly, raising minimum wage is a step towards ending poverty in the US, and statistics have shown that unemployment rates were lowered, hourly wages increased, family incomes increased, and poverty rates dropped due to an increase in minimum wage; however, because the minimum wage is not indexed to inflation, it could cause strain on the domestic economy during a depression: companies would be forced to pay their workers the new minimum wage and they may incur huge losses, ultimately. But don't forget that there is the federal reserve whose job is to prevent the domestic economy from failing. With the Fed working constantly to keep the economy alive, there is no reason not to increase the minimum wage.
Minimum wage should rise, one reason being that the average family cannot live a healthy and happy life on such a low rate in this society. In our nation, the divorce rates are incredible, and leaves many families with only one parent. Many single parents are of the lower or middle class and must work an unhealthy amount of hours to provide for their children and themself. Even if the family has two parents, the low wages can have a negative effect on them, for example, what Nicole T. said about these low wages and the strain they put on relationships. Many poor families with two parents can lead to a divorce or an unhealthy relationship causing emotional problems for the entire family. By raising the minimum wage, these families can have health insurance and be able to live happy and successful lives. This will lead to better citizens for the future of our country. Although what Ryan T. said is possible, we should give our fellow Americans a chance and raise the minimum wage. I feel that the luxuries we waste our money on can be sacrificed for our fellow Americans.
Minimum wage needs to be raised. Although it was put in place to enable people to get by on, it is not keeping up with the costs of living. The average working person has to work 40 or more hours just to scrape by themselves. If you add a family to support, they may not make it or have to work an unhealthy amount of time just to make ends meet. Working on the current minimum wage does not enable people to have normal, healthy lives. No one should have to live their lives paycheck to paycheck, waking up, working, and doing it all over again. On minimum wage, many elements of a normal life are lost, such as relaxation time, healthy relationships, and time to just enjoy your life. One major reason why minimum wage is not working out is because the people working on it, are being taxed the same as everyone else in the country. You can either raise minimum wage or you could reduce the tax burden on the working class, but something needs to be done.
As of 2006 the real value of minimum wage had fallen to its lowest amount in 50 years. The minimum wage relative to the average wage has also fallen to its lowest point ever, meaning that those on minimum wage have less buying power. In a society where inflation is constant the minimum wage must be raised occasionally to keep pace. Though increasing the minimum wage would cause the price of most goods to rise this rise would be a proportionate fraction of the value of the minimum wage increase, so the raising of the minimum wage would increase the buying power and better the lifestyles of the poorest Americans.
MichaelM said...
For the longest time Federal minimum wage has remained at $5.15 an hour. 5.6 million people here in America would benefite off of an increase in the inminimum wage. Although some business may be affected by this change the benefits will be for the greater good. A person working on minimum wage for 8 hours a day, 5 days a week, for a year straight would only make an estimated $10,750 a year. Now this does not include tax and does not deduct from days he/she is sick and does not deduct from holidays. There is no way a person can survive on this budget. Average rent costs about $300-$500 a month, thats an average of $4,800 a year in rent. That leaves you with only $6,000 a year for food, bills, and emergency money. One visit to the emergency room could cost you houdnreds and thousands of dollars. The minimum wage was set up to provide for the bear minimum standards of living, obvioulsy these statistics prove that the minimum wage is then ineffective. That is why there needs to be a raise in the federal minimum wage.
In a fairytale like setting raising the minimum wage would make everyone happy. When critically thinking about this commonly asked question you must keep in mind we are living in anything but a fairytale like society. For each action there is a consequence. For instance think of the business owners that need to now pay out this extra money to their employees. Raising the minimum wage in this example would't make anything better or more right, but just inconveniece 1 and help another. Not to mention how raising the minimum wage would effect each and every one of us. Using another example that you can all relate to; the food price at restaurants would go up because now their employees need to be paid even more so the owners/corporations will now be taking money out of the customers pocket to compensate for it. If you want to be robbed blind by the American Goverment once again be my guest. Even as a person whose worked minimum wage for around a year I still hold true on this opinion. Eventually I beleive it should increase but not for a good year or two. Keep it at a certain rate and as the prices of everything around us heightens, that is when it should be raised.
I think that because of the recent inflation, there is a necessity for an increase in minimum wage. The amount is too low, especially in relation to the ever-rising costs of everyday things, which has risen 26% while the minimum wage has remained the same. Many people are trying to support their families, including single parents, and with the cost of child care, food, entertainment, transportation and other necessities, there just aren’t enough hours in the day to work enough to support yourself, let alone others. Poverty is a huge issue in this country, and we could definitely combat it by raising the minimum wage. Due to social reforms, more poor people are working minimum wage jobs instead of relying on unemployment, so this raise will directly benefit those in dire need. One study found that an increase from of only one dollar would help almost 900,000 people to get out of poverty (Sawhill and Thomas, 2001).
No, the minimum wage should not be raised because the increase would in fact enlarge job loss and poverty; instead of the intended purpose of lowering both. The increase in minimum wage puts more of a burden on the businesses; whether to decrease the wages of other workers, lay off workers, have fewer hours or increase prices of items.
A raise in the minimum wage would undoubtedly better America as a hole, for obvious reasons. It is clear that unemployment rates, poverty levels, and living conditions for far too many people in this country are horrendous. These people generally come from poor areas and lack many, if not all, of the opportunities that we are fortunate enough to have in Smithtown. If I were to make a completely self-centered assessment, however, I’d have to say that a minimum wage increase would not be ideal. Many minimum wage workers are young, and chances are that any significant increase would make it harder for me to get a job, or at least decent hours. I would still hopefully attend college and receive an education to prepare me for a career in which minimum wage would not be a personal issue. Luckily, I'm not that ignorant and I think it's clear that a raise in minimum wage is a necessity.
The intent of raising the minimum wage benefit the low-wage working class, but if people are doing the same amount of work for the same time period and getting more money for it, it will only cause inflation. There-fore creating the same situation all over again, and maybe an even worse one. In addition to inflation, it will increase job loss as well, seeing as mostly the working poor will benefit from the increase. Pressure will also be pressed upon businesses as well since workers may have to be laid off just to keep up with wages. Now one may say, the cost of living has gone up 25%, but if we look at the macro-economics its just a big loop. If more got resulted and got produced from this increase in minimum wage, then it would be a benefit for people to pay for living costs. But sadly it is not.
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