In the economy were in today, people, businesses and politicians are trying to figure out a solution to fix the problem that we found ourselves in. One of those solutions was simply to raise the minimumwage, somehaveagreed, others haven’t. The federalminimumwage shouldn’t be raised any higher then what it already is for several valid reasons. Occupations that payonly the minimumwageare meant to lead onto lifetime careers or higherlevels of employment, which offer higher wages.
To the naked eye itmayseemthat raisingthe minimum wage would help people in poverty with limited job skills afford the necessities of life as we know it, but raising the minimum wage would ultimately be detrimental to their life. As employers would be faced to pay their employees more, they would encounter several issues involvingpayrolland productpricing. Raisingthe minimumwage would also be difficult for small business owners to cope with.
They are forced to compete with retail giants while also paying a competent staff well enough to keep them from leaving. If the minimum wage were to increase, it is likely that unemployment would go up because storeowners would not be able to afford as many workers; layoffs in businesses that pay the minimum wage would be common.
Some would argue that increasingthe minimumwagewould encourage more spending, which would put money into and stimulate the economy, but the logic of that is simple: Stores would Toussaint 2 raise their product prices to respond to the higheremployee wages and peoplelivingon minimumwagewould essentiallybe back to square one intheircheckbook. Whilethe federal minimumwageis oftenseenas a toolused to keep poor people from havingto depend on government programs such as welfare, the money they are paid often is simply not enough to fund all aspects of their lives, especially if the minimum wage earners have children.
The government has a responsibility to it’s citizens, impoverished and otherwise, which is where the minimum wage must step in. However, making such a large increase will, in the end, make the minimum wage earners worst off. Increasingtheminimumwagealso leadsto a lot more job competition, this increase in competition is just going to make it more difficult then it already is for low-skilled workers to find employment. Me as a sixteen yearold, itwas extremelydifficultforme to find anytype of employment.
Ittook me over a year before I gotmyfirst job but, realisticallyspeaking, how much longer would ithave took meifallthe businesses I applied to couldn’t afford to take on another worker? With a higher minimum wage, the benefits businesses can afford to provide employees can also decrease. According to economist William Wascher of “Neumark and The FederalReserve Board,”employers that must cutcosts and don’t offer health insurance mayfeel theneed to reduce the amount oftrainingoffered to newemployees and eliminateformal trainingofanytype, thus reducingjob benefits.
Thiscontinuingcycleofincreasingminimum wage will never end, as soon as the minimum wage gets raised, the people will want it to be raised even further. Just adding to the abnormal inflation. When people realize they can make let’ssayfifthteendollarsanhourfromminimumwage, thiswilldissuade vastamounts ofpeople from furthering their education. This will simply cause even more job competition like said Toussaint 3 before and there willalso be anincrease to the “blue collar”work pool. Job loss or unemployment is very easy to figure out and realize for yourself. For example, if a business has a hourlycap of80$ and theycompensate theiremployees foreight dollars anhoureach, theycan havetenemployees.
Butifthis minimumwage wasincreased to let’ssaysixteen dollarsanhour then this same company would only be able to have five employees at a time. The pros for raising the minimum wage is very minimal. Some of the most brought up statementswhensupportingthe topic are thatitincreasesthe standard oflivingforthepoorest and most vulnerable classinsociety and raises theaverage. Also thatitdecreases the cost of government social welfare programs by increasing incomes for the lowest paid. Increases the work ethic of those who earn very little, as employers demand more return from the higher costs ofhiringthese employees. Evenwithsome “pros” to thistopic, the cons highlyoutweighthe pros.
For every pro there’s ten cons and that’s not very good odds for the opposition. With all the negatives that raising minimum wage would do, the positives wouldn’t be that significant either, ithas a verylowimpact. Itaccomplishes little inthe wayofreducingpoverty. The populationof minimum wage workers is relatively small when compared to others members of the working force, so only a select group of individuals benefit from the change. Additionally, a raised minimum wage does nothing for those who are unemployed to begin with. Even if it was raised it doesn’t even remotely help the very people who wanted the change.
Could anyone imagine working at a placefor two years and earninga raise fromsevento nine dollars and the nextday minimum wage has caught up to your earnings. Doesn’t sound to bad right, I mean they could just bump my pay from nine to eleven but no, it doesn’t work that way. After having such a rapid increase in cost to employees, the last thing an employer will want to do is give even more Toussaint4 money away. Allinallraisingthis minimumwagewillbe a complete wasteoftime solely because of the fact it doesn’t benefit anyone and only seems to hurt the people who did and do not want it to happen.
Toussaint 5 Citations “MinimumWage Laws inthe States -Wage and HourDivision(WHD)-U. S. Departmentof Labor. ” Minimum Wage Laws in the States – Wage and Hour Division (WHD) – U. S. Department of Labor. N. p. , n. d. Web. 08 Oct. 2014. “State Minimum Wages | 2014 Minimum Wage by State. ” State Minimum Wages | 2014 Minimum Wage by State. NCSL, 17 Sept. 2014. Web. 15 Oct. 2014. “The Florida Minimum Wage. ” Florida Minimum Wage Rate 2014. N. p. , n. d. Web. 08 Oct. 2014. “Will the Minimum Wage Increase Hurt the Economy? ” Will the Minimum Wage Increase Hurt the Economy? N. p. , n. d. Web. 16 Oct. 2014.