The Effects Of Higher Minimum Wage Essays - 1982 Words

The Effects of a Higher Minimum Wage When I was eleven years old my parents told me that they could not afford to buy me new school clothes that year. So, in my desperation for some new school clothes I started working. I did odd jobs on farms for family and friends, as well as babysitting. I worked that whole summer of my 6th grade year, and I continued to work every summer up until my senior year in high school when I started to work full-time. I started helping pay my parents rent when I was thirteen and bought most of my own food as a young adult. I bought all of my cars, and I am paying for my own school. So you might ask why were we so poor? Was it because you had deadbeat parents? Did they not work full-time? What? Why were you†¦show more content†¦Consumers would have to spend more money for the same goods and as a result of that the poverty line would actually be raised if the minimum wage were to be raised. I will discuss into further detail about these topics and who the raised wages would actually affect, and the answer is surprising. The people that would take the biggest blow are the stake holders of large corporate companies that would have to raise the cost of employee wages if the minimum wage were to be raised. If a corporation with 10,000 employees working forty hours a week had to give their employees a fifty cent raise, they would lose over ten million dollars a year. Now I do not know about you, but if I had a company and I was about to lose ten million dollars a year I would be trying to compensate for it. Wilson (1999), states that if the federal minimum wage were to be raised companies might respond in such a way that may cost employees their fringe benefits. They would lose hours, medical benefits, yearly bonuses and merit based raises. Okay, so some people may lose benefits, but at least they are able to bring home more in their pockets. Fair enough, but what if that wasn’t enough to compensate for the profit loss in companies? So now what? Well the company’s only option is to fire some employees. Sherk (2007), states â€Å"that most estimates suggest that each ten percent increase in the minimum wage reduces employment in affected groups of workers by roughly two percent.Show MoreRelatedThis 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 And Its Effect On The Economy1015 Words   |  5 Pageshigh unemployment rate is the issue of minimum wage. Depending on the states in U.S., the price of minimum wage is different, but the low minimum wage may cause the economic condition worse. Minimum wage is the lowest wage that an employer is allowed to pay. This wage is regulated by the law, so all workers must follow this rule. According to the book, â€Å"Minimum Wages†, the author Neumark, David states, â€Å"in 1938, the U.S. Congress passed a federal minimum wage as part of the Fair Labor Standard Act†Read MoreDemand Supply , Examine the Argument in Favour Against Minimum Wage Law in Uk1415 Words   |  6 Pages * (Using Demand Supply: examine the arguments in favour against minimum wage law in UK*) * *Total words: 1,402 Demand It refers to the willingness and ability of buyers to purchase goods and services at different prices. Supply It refers to the willingness and ability of sellers to provide goods and services for sale at different prices What* *is minimum wage? A minimum wage is the lowest monthly, daily or hourly that employers may legally payRead MoreMinimum Wage : Low Skilled And Young Workers1553 Words   |  7 PagesIntroduction Minimum wage, a program created to help the poor, has every contrary effect to its well intentions. Throughout the history, people who hurt the most during minimum wage hikes are the low-skilled and young workers. Drastically raising minimum wage is meaningless as high inflation usually comes alongside with wage increases. Past economic statistics have shown that the rate of increase in inflation usually outpaced the rate of increase in minimum wage. Thus, the real value wage workers receiveRead MoreMinimum Wages During 21st Century America1649 Words   |  7 PagesMinimum Wages in 21st Century America In the United States the time has come for the next president to be elected and the political fervor has come early this year with an unconventional, surprisingly interesting primary race. With the coming of a new commander in chief the incessant grilling of the candidates has begun and issues, such as poverty in the United States, are being given the national spot light during debates. The issue of poverty has recently gained traction among citizens as wellRead MoreSunday, July 24, 2016, Marks Seven Years Since The Last1539 Words   |  7 Pagesfederal 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 producing goods and services. Second, a minimum wage increaseRead MoreRaising The Minimum Wage Increase Essay897 Words   |  4 PagesAnalysis of Policy There have been discussions about whether to raise the minimum wage to either $9.00, $10.10, or $15.00 per hour. The minimum wage increase is supposed to be the first step to solving the income inequality problem in America and a step towards economic growth in America, by helping to stimulate the economy. Research into the effects of the wage increase shows, to me, that a higher minimum wage does not cause a drastic change in unemployment. It does increase productivity, and willRead MorePersuasive Speech Outline For Non Rising Of Minimum Wage Essay1228 Words   |  5 Pagesis to persuade my audience to support the non-rising of minimum wage. ___________________________________________________________________________ Introduction Attention getter (teaser): How many of you believe we in the state of California should have a higher minimum wage? Well we shouldn’t and I’m going to tell you why. Significance (why important to them?): A lot of people believe that because you re getting paid a higher minimum wage that it’s benefiting you but in reality that’s not theRead MoreThe Effects Of Minimum Wage Increase On The Household And Industry942 Words   |  4 PagesWhat is the effects of a minimum wage increase on the household and industry?Minimum wage in the state of Illinois is only $8.25,but in most jobs $7.25. Most States give higher than $7.25 like Washington D.C. Some minimum wages can be lower like Georgia.Family employment and family income does have a effects on low-wage workers.Most family receive higher pay,that would increase their family s income. Workers that don t have a job would fall substantially and the share of low-wage wokers.EmployedRead MoreThe Regulation Of Minimum Wage1055 Words   |  5 PagesRegulation of Minimum Wage In today’s society, people face to many serious issues which affect the society both in a positive and negative ways such as increasing the employment rate and increasing the unemployment rate. The increasing of the unemployment rate is caused by some reasons, and one of the problems that causes the high unemployment rate is the issue of the minimum wage. Depending on the states in the U.S., the price of minimum wage is different, but the low minimum wage may cause the