The Federal Minimum Wage Should Have Negative Effects On...

Courageous people have been publicly coming forward to tell their stories of personal pain, indignity, and frustration in the interest of creating the will to increase the federal minimum wage. Stacey Brundson, a single father of two, said he has donated blood to bring in extra cash just to help his family afford the basics. â€Å"Sometimes there’s not enough in my paycheck to make it through the month,† said Brundson (qtd. in Harris). Although numerous conservatives and business owners believe that a modification in the current federal minimum wage will have negative effects on employment, on low-skilled workers, and on consumer’s prices, increasing the federal minimum wage and eliminating the subminimum wage is one potential policy option for†¦show more content†¦Unfortunately, adjusting the minimum wage is not always the case since the federal minimum wage has been frozen at $7.25 for over 21 years, and the federal minimum tipped wage has been frozen at $2.13 for almost five years (History). The minimum wage has been an important element on the United States labor system and has sparked debates between employers and workers to this day. The main argument against raising the minimum wage is that the harmful effects raising the minimum wage would create do not justify the small-scale benefits generated by the raise. Business owners and conservatives claim that raising the minimum wage will result in job loss, hurt low skilled workers, and may result in higher prices for consumers. In a 2012 paper published in the peer-reviewed Industrial and Labor Relations Review (ILRReview), economists Richard Burkhauser, Benjamin Hansen, and Joseph Sabia, state that while some low-skilled workers living in poverty do see their incomes rise when the minimum wage increases, many others lose their jobs or have their hours significantly cut. Their study concluded that New York’s 2004-2006 $1.60-per-hour minimum wage hike was associated with a 20.2 to 21.8 percent reduction in the employment of younger, less-educated individuals, with the largest effects for those ages 16-to-24. Conservatives believe that even though teenagers areShow MoreRelatedDoes the Minimum Wage Increase the Standard of Living for Low-Income People?1391 Words   |  6 PagesThe United States has maintained a minimum wage which was enacted since 1938. At the present time there is much political debate in regarding to increase the minimum wage to levels at the federal level, state, and local levels of government across this country. There are various theories regarding the minimum wage. Some believe it would circulate money into the economy faster which would negate and negative effects on employment, or even improve unemployment rates. Others point to the economic theoryRead MoreThe Minimum Wage Policy During The United States1714 Words   |  7 Pagesincrease the federal minimum wage. Headlines throughout the country highlight recent minimum wage policy changes in major cities such as Los Angeles and Seattle. Last month, Governor Andrew Cuomo of New York announced an approved minimum wage increase to $15 an hour for all fast food workers in the state (McGeehan). Even the website for the White House has a separate page, â€Å"Raise the Wage,† advocating for Congress to increase the federal minimum wage to $10.10 an hour (Raise the Wage). The mostRead MoreRaising The Federal Minimum Wage889 Words   |  4 Pagesraising the federal minimum wage would positively effect the economy. In doing so, I will be discussing how an increase in the federal minimum wage would make a vast improvement on the way many low income families live, and also how raising the federal minimum wage would boost the economy as it desperately needs. In raising the federal minimum wage, one might argue that it would cause a spike in the unemployment rate. The reasoning is that it would force employers to balance the increase in wages thatRead MoreThe Effects Of Minimum Wage On The United States1168 Words   |  5 PagesResearch shows if minimum wage was to climb that it would hurt the least skilled and the least experienced people trying to seek a job the most. There are different of opinions people believe in about the positive and negative aspect of minimum wage. Supporters argue that such a boost will shrink poverty without plummeting jobs and that it will boost confidence, increase the normal living, and cut inequality and have businesses to be well-organized. Opponents that are not for minimum wage say it will increaseRead MoreThis Study Focuses On How The Minimum-Wage Serves As A1162 Words   |  5 Pages This study focuses on how the minimum-wage serves as a place for prime age workers, those between the age of 25 and 54, to get stuck. For the purpose of this study, minimum-wage was established as anyone earning less than or equal to $1.00 above the 1997 wage of $5.15, as adjusted by inflation. While minimum-wage was developed as a floor for wages, this study asserts that a worker with one child will be nearly $3,000 below the poverty line even if they work full-time, full-year. It was concludedRead MoreMinimum Wage Should Be Increased1057 Words   |  5 PagesRebecca Nevins Meredith Sides English 101 16 November 2015 Minimum Wage Should Be Increased Congress enacted the federal minimum wage in 1938, during the Great Depression. Congress had two goals; keeping workers away from poverty and boosting consumer spending for economic recovery. Today, there is a debate, whether we should increase the minimum wage again. Increasing the minimum wage is useful for several reasons. First, the current minimum wage has failed to keep up with inflation. Second, a higherRead MoreSunday, July 24, 2016, Marks Seven Years Since The Last1539 Words   |  7 Pages marks seven years since the last time the federal minimum wage was raised (U.S. Department of Labor). Since raised, the cost of living has increased by nearly 12 percent. When President Obama called for an increase in 2013 19 states, have raised their minimum wage between $8.15 and $11.00. But is the hike beneficial to everyone? According to conventional economic analysis, increasing the minimum wage reduces employment in two ways. First, higher wages increase the cost to employers of p roducingRead MoreEssay on The Minimum Wage Should Be Increased1048 Words   |  5 Pagesthe federal minimum wage in 1938, during the Great Depression. Congress had two goals; keeping workers away from poverty and boosting consumer spending for economic recovery. Today, there is a debate, whether we should increase the minimum wage again. Increasing the minimum wage is useful for several reasons. First, the current minimum wage has failed to keep up with inflation. Second, a higher income level reduces employee turnover and increases efficiency and ultimately, raising the minimum wageRead MoreA Full Time Worker Earn $ 5.15 An Hour1378 Words   |  6 Pagesearning $7.25 an hour will make approximately $15,080 a year (â€Å"Minimum Wage†). That’s barely more than what students pay for housing and food at some colleges, and we expect a family to live off of this? The poverty line is at $20,000 for a family of four, so how are these people supposed to raise their childr en in a healthy environment while working full-time to not even be on the poverty line? If this raise is done correctly, employment and prices won’t be hurt, and we will only be helping our nation’sRead MoreMinimum Wage Should Be Legal1156 Words   |  5 Pagesbusinesses argued about minimum wage. Whether it should be raised or leave it the way it is. But, what exactly is minimum wages? Minimum wage is the least amount of money per hour that must be paid to a worker after surrounding a service according to the law. Many working class families’ lives depend on this minimum wages. There are few families who make less than $15000 a year who feed their families on this salary and still pay bills from it. Over the past year, the federal government has been working