Minimum Wage Debate

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The debate over minimum wage has been an issue that has been argued in politics and between people of our country for years. The debate is over whether the government should raise the minimum wage from what its currently priced at. Supporters of a minimum wage increase feel that the working poor will be able to spend more money, and be more financially independent. This will then help businesses and the local economy. Supporters believe that raising the minimum wage will positively affect the economy. The individuals that are not supporters of the minimum wage increase feel that an increase, (while it is helping low-income individuals) will make it more difficult for companies and businesses to succeed. Anti- supporters believe that company…show more content…
Businesses will have to start cutting the hours of employees in order to make profits. They will also need to raise their product prices to continue profitability. One major advocate for not raising the minimum wage is Speaker of the House John Boehner. He states, “When you raise the price of employment, guess what happens? You get less of it.” This speaks to the basic supply and demand rules, that a higher price causes a decrease in demand. Another advocate for not raising the minimum wage is Richard Florida. He agrees with Boehner and states, “Over 85 percent of economic studies in peer reviewed journals say job loss occurs after an increase in minimum wages.” Florida goes on to say that no matter what size the increase for minimum wage is, the effects on employers will be widespread. Individuals who are seeking jobs will continue to be jobless because the demand for workers is lower. Therefore, workers with fewer job qualifications will be unable to get a chance at obtaining a job. Increasing the minimum wage still will not be enough to get a family above the poverty level. If the main income provider of a household is earning minimum wage and the wages were increased by $0.50, this would not be enough to notably improve the family’s standard of…show more content…
“When the minimum wage rises, it increases the incomes of teenagers with minimum-wage jobs, making entering the workforce more attractive. This could cause some students to spend less time in school and more time working. While the overall number of minimum-wage jobs may decrease, if employers prefer to hire teenagers to low-skilled adults, the number of teenagers enrolled in school would drop” (Soergel 2016). Those who argue for raising the minimum wage have a few main arguments for their reasoning. One argument is that an increase in minimum wage could be a means of stimulating economic growth. Lower income individuals are likely to spend the extra money they earn. Director of Economic and Fiscal Policy at the Economic Progress Institute, Douglas Hall states, “If you give $100 to a person who makes minimum wage they are probably going to spend it immediately and locally,” causing economic growth. Comparing that to if you gave $100 to someone more wealthy, they may save it for some time, causing zero economic

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