Preview

Minimum Wage Is Bad Essay

Good Essays
Open Document
Open Document
764 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Minimum Wage Is Bad Essay
Many countries, both developing countries like China and developed countries like United States, in order to ensure workers a minimally adequate standard of living and assist unskilled workers and teenagers, they impose the minimum wage laws, which dictates the lowest price for labor that any employer may pay. Nonetheless, although the starting point of estimating minimum wage laws is good, many economists, such as American economists named Henry Hazlitt, indicate that the minimum wage is the worst method and wrong way to enhance the wage. Why is the minimum wage bad way? As we know, the minimum wage law is used to help the poor, however, it actually hurt them. Owing to the minimum wage laws, plentiful companies have to increase the wage of unskilled workers. Thereby, they will cut down some workers to reduce the cost. Workers, who are fired, are usually unskilled people that the government tries to help. As a result, the unemployment rate raises, and skilled workers have no impact or benefits from the minimum wage laws. Furthermore, in the bulk of developed countries, the minimum wage …show more content…
The government redistributes income from business towards low wage workers to reduce inequality by the minimum wage laws. It also provides a boost to low wage workers to look for a job because the minimum wage is higher than the previous salary. Additionally, the increase of minimum wages can light workers’ enthusiasm to improve their productivity. As well, according to the survey, when American minimum wage raised by $7.25 per hour, more than 16 million low-wage workers directly benefit from the increase, and another 8 million slightly skilled workers get relevant benefits. This would increase $31 billion to the paychecks of families ranging from poverty level to the middle class to boost their spending power and add the nation’s economic output and total

You May Also Find These Documents Helpful

  • Good Essays

    In his article “ Raising minimum wage won’t lower poverty”( Saltsman, 2011) discussed that raising the minimum wage may contribute to reducing the incidence of poverty at the same time may increase the incidence of poverty. Although raising the minimum wage contribute to the economic development and create many jobs and thus reduce unemployment. However, a lot of studies have shown that all of these pros of the lifting of the minimum wage will turn into cons by reducing the employment rate. After that , he mentioned the need to find regulations to imposing monthly salaries and hiring a lot of people instead of the consequences associated with the minimum wage.…

    • 245 Words
    • 1 Page
    Good Essays
  • Powerful Essays

    They form two diametrically opposed forces. Opponents argue that the minimum wage is unfavorable employment, while the supporters argue that the minimum wage can promote employment. I believe that, the impact of minimum wages on employment is not the same. It defies generalizations. Minimum wage policy is to increase employment or reduce employment, or have no impact on employment, depending on the specific circumstances of a country's labor market. If the labor market is in a state of perfect competition, introduction of a minimum wage may be to some extent reduce employment. If the labor market is in a state monophony and an appropriate level of minimum wage, it will help employment. If employers reduce the welfare of the employees, it objectively will weaken the employment. In addition, a large number of foreign empirical results also demonstrate the impact of the minimum wage policy on employment is…

    • 1537 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    For my Capstone Essay, I decided to talk about the topic of whether or not minimum wage should increase. Because this is such a largely debated issue, I thought this would be an interesting topic to learn about. Originally I thought it would be easy to find information because of this. Despite minimum wage being a popular issue, I had a hard time finding any relevant or useful information. While I wanted to use primarily statistical research for my Capstone Essay, this problem influenced me to use the little bit of experience I have had. Even though it seemed like a problem originally, I am happy that the conflict led to practiced used in previous essays.…

    • 684 Words
    • 3 Pages
    Good Essays
  • Good Essays

    (Hanauer)Some people may think that is so crazy. However, the result is great. Seattle is the fastest-growing big city in the America. Washington state is generating small business jobs at a higher rate than any other major state in the nation. And the restaurant business in Seattle is also growing rapidly. The one of the reason is because the fundamental law of capitalism is when workers have more money, businesses have more customers and need more workers. If the employers can pay more money to workers, the workers will have more positive attitude on their work and bring more profits for their company. Nonetheless, there is also someone against to raise the minimum wage. The video named Does the minimum wage hurt workers? Antony Davies says “Minimum wage often hurts those who are most in need of our help.” (Davies, 2012)In this video, he uses an example to explain his opinion. Here are three people work at a same restaurant, Bob, Tom and Derek. The minimum wage of them is $8 per hour. Their income is depending on how many works they done. As the result, you can…

    • 1240 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    The majority of American’s designated as being below the poverty level are working minimum wage jobs. The current economic buzz is rather or not to increase the minimum wage as a means of helping America’s poorest workers. The White House Council of Economic Advisors published a briefing in early 2014 that indicated that minimum wage could be raised 40 % without triggering job losses (Source 11). The positive aspect of this minimum wage increase would be passed down to 900,000 poor Americans who work these types of jobs (Source 12). To those living in poverty this is a positive solution to the reliance upon government welfare subsidies or the need to work multiple jobs to support growing families (Source 12). However, the Congressional Budget Office published another report in response to the proposed hikes that indicated that if minimum wage were to rise 40 % there would be a loss of over 500,000 jobs (Source 11). The idea of raising minimum wage to offset the needs of poor American’s seems like a quick fix for the issue of poverty. Yet, the loss of jobs for this same group of American’s seems unfathomable. The poor who typically work these minimum wage jobs are looking for relief from the pressures of long hours working multiple jobs in order to survive (Source 12). Either way the economic cost of America’s poor is passed on to all tax payers through increased taxes to…

    • 1818 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    making minimum wage yourself ”[Koerting 11]. The rich argue that the government should not give directly to the people but rather build institutions such as libraries, schools, and universities where those who want to succeed, can succeed. A minimum wage may protect the worker from ridiculously low wages but only encourages lethargy among those who earn it and raising the minimum wage would have the same corresponding and increasing affect.…

    • 326 Words
    • 2 Pages
    Good Essays
  • Good Essays

    A main controversial issue in todays society is whether or not to raise minimum wage and how much to raise it by. There comes both benefits and consequences to raising the minimum wage price. In an article written by David Henderson titled, “ Raising the Minimum Wage Will Not Reduce Poverty” Henderson discusses the consequences to raising minimum wage and how it may affect the youth and currently employed. In another related article found on the New York Post by Jonathan M. Trugman titled, “Raising minimum wage would cost a million people their jobs” Trugman confronts, “ The American worker is grossly underpaid, by about 25 percent to 30 percent — heck, wages have been stagnant for almost a decade.” (CITE) According to both David Henderson and Jonathon M. Trugman the consequence of raising minimum wage could amount to thousands to millions of Americans loosing their jobs and becoming unemployed. Though I concede that the minimum wage price should…

    • 545 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Minimum Wage Thesis

    • 754 Words
    • 4 Pages

    According to the Economic Policy Institute, if the minimum wage could be raised from $5.15 to $7.25 by 2008, then an estimated 14.9 million workers (11% of the workforce) would receive an increase in their hourly wage rate. This increase would affect 6.6 million workers (5% of the workforce) of these workers who currently earn less than $7.25. Consequently, The additional 8.3 million workers (6% of the workforce) earning slightly above the minimum would also likely benefit from an increase due to spillover effects (Facts at a Glance…

    • 754 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Raising Minimum Wage

    • 355 Words
    • 2 Pages

    Most people who work “low-end” jobs and get paid minimum wage are still struggling in poverty. Most minimum wage workers do not have the means necessary to pay for basic everyday necessities, let alone having money for personal expenses. Last February, the Congressional Budget Office estimated that raising…

    • 355 Words
    • 2 Pages
    Good Essays
  • Good Essays

    In order for any change to happen people must first have to start by replacing any political officials that are not supporting the views of its people and the greater good. We have to make sure that people in office that are representing us and advocating the increasing on minimum wage,are fully supported. Politicians like Bernie Sanders and Hillary Clinton have the right idea when it comes to minimum wage. They want to impose laws so that states and federal government are required to increase the minimum wage whenever the cost of living rises (Johnston 1). There has to be an uprise by women, young workers and other low income individuals by having a peaceful protest to the government that the current minimum wage is not acceptable. Creating a petition and have it sent to a government official that advocates the increase of minimum wage can also aid the cause. A petition will have the same results as a protest but with this method it will allow expansion of the idea to different states and different people allowing more coverage and even more individuals to accept the idea of increasing…

    • 407 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The United States have been recognize as one of the strongest countries of the world for its persistence growing as a nation after the depression era the United States went through and how the nation could deal with it. Besides, The United States is known as practically the birthplace of opportunities, one of the main reasons why people in countries that are close to the United States decide to immigrate there is by the constant search for opportunities (jobs, education, a better way of living) that are promised; at the same time generates different problems ranging from unemployment to low salaries because of the available workforce. The work opportunities in the U.S. are infinite and immense but we’re gradually making life too hard to be living. According to Steven Rattner article “Americans between 18 and 34 are earning less today than the same age group did in the past.” This has being an issue that many Americans address as it affect us in our living situations such as education, work, and taxes; regarding the budget and their way of living.…

    • 502 Words
    • 3 Pages
    Good Essays
  • Good Essays

    In this article, John Komlos argues that raising the national minimum wage will have a positive impact on the economics of America. Komlos details that over the past few decades, the minimum wage has shrunk by a substantial amount when comparing it with the inflation that America has experienced. America’s current nationally mandated minimum wage is $7.25. This is miniscule in comparison to the inflation-adjusted minimum wage from 1968, which would be $10.90 in today’s dollars. Because of this shrinking minimum wage, a new class of working poor has really appeared on the American socio-economic class structure. This new class of workers is unable to move up in the world because these starting wages are too small. No matter how hard these people work, they still can’t gain an…

    • 944 Words
    • 4 Pages
    Good Essays
  • Good Essays

    After an excruciating minimum-wage work day at the rambunctious factory, arriving home to the luscious aroma of the fresh out of the oven red velvet cake would be paradise, right? Well... NEWS FLASH! Even if you had a moment to devour that savory cake, the agony does not end there. With five children to take care of, you scarcely have time to take care of yourself. If only you lived one day in pure ecstasy, then the idea of your oldest daughter taking ecstasy would fleetingly ebb like the sea. But you see her drowning in the sea of debt and you can not ignore that horrifying image. Immediately, pure ecstasy vanishes into dust. You discover yourself trapped in a gloomy, forlorn room. “Parents disown debt-ridden daughter”,…

    • 684 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Minimum Wage Job Essay

    • 585 Words
    • 3 Pages

    In the situation of working post-high school at a minimum wage job, I would be making $10 an hour, with an additional $2 an hour due to my ability to fluently speak Vietnamese. Working thirty-two hours a week with a bi-weekly paycheck, I would be making $768 bi-weekly, summing up to $1536 as my monthly gross pay. However, my net pay would only be $1393.15 due to $142.85 going to taxes. Based on my net pay, I decided that I will stay at home.…

    • 585 Words
    • 3 Pages
    Good Essays
  • Good Essays

    A high school student that has a job or is thinking about getting a job knows what minimum wage is because they know how little it is. Minimum wage is a set p/hr earnings an employer must pay his or her employees. Oregon is one of eighteen states in the U.S. that has set a higher minimum wage then the federal law of only $5.15 per/hr. For many years there has been a debate on weather or not highirng the minimum wage helps or hurts the economy, in most states with a higher minimum wage it has shown an increase in that states economy.…

    • 1003 Words
    • 5 Pages
    Good Essays

Related Topics