Essay On Raising Minimum Wage

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John Boehner, the head of the House Republican Conference quotes, “I’ll commit suicide before I vote on a clean minimum-wage bill.’ According to the Brookings Institute, “In a Congressional Budget Office report in 2014, policy analysts predicted that Obama’s proposal to raise the federal minimum wage to $10 an hour would raise wages for 16 to 24 million people while eliminating about half a million jobs.” We should not raise the minimum wage because it may cause businesses to raise their prices,It could have little effect on reducing poverty, and this could result in people losing their jobs. My first reason why we should not raise the minimum wage is because, Businesses could raise their prices. This would damage the wallets of many people in our economy. According to, a 2005 CNN review, “more than 20 minimum wage studies looking at price effects found that a 10 percent increase in the U.S. minimum wage raises food prices by up to 4 percent.” A 2007 study from the Federal Reserve Bank of Chicago found that “restaurant prices increase in response to minimum wage increases.” If the price of goods and services goes up across the board to make up for higher employee wages, it will not only negate the wage hike for low-income…show more content…
This is important because, if this was to be raised to $9.50, only 11 percent of workers who may gain money, happen to live in poor households. The 2012 Wilson review noted that “since 1995, eight studies have examined the income and poverty effects of minimum wage increases, and all but one have found that past minimum wages had no effect on poverty.” Which means, that this won’t reduce poverty as much as people believe it will. According to a 2014 University of Maryland article, it states that “If the people on the minimum wage are secondary family workers in non poor households, higher minimum wages will not reduce

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