Raising The Minimum Wage Research Paper
Is Raising the Minimum Wage the Answer for American Workers? The minimum wage has always been an important topic for American workers. In recent years the minimum wage, has been at an increasing center of attention for many American workers. The minimum wage was set by Franklin Roosevelt, under the Fair Labor and standards act (FLSA). The FLSA also set in place regulations for underage workers, overtime pay, record keeping, government pay, as well as the federal minimum wage. The current minimum wage is at seven dollars and twenty five cents an hour, and many people would like to see the minimum wage raised to around ten dollars or more per hour. The counter argument to the current federal minimum wage is that the seven twenty five minimum
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If you increase the wage for the workers the money has to come from somewhere. While people will lose their jobs because of the budget cuts to accommodate the now higher wage, prices will increase as well. An increase in price will help business to keep making a profit after a federal minimum wage increase. The CATO Institute published an article titled “Four Reasons Not to Raise the Minimum Wage” the article quotes “It May Result In Higher Prices For Consumers The costs of minimum wage increases must be paid by someone • The 2012 Wilson review noted: A 2004 “review of 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.” Raising the prices of consumer goods would help keep jobs and help keep the profit of companies, but it would hurt our wallets and …show more content…
The increase in wage will do damage to the economy, in more than one way. The unskilled worker will take the biggest hit because unskilled workers will lose their jobs and it will be harder to find new ones because skilled workers are more valuable to employers. Prices of consumer goods will increase in an effort to keep jobs and profit, but will hurt consumer wallets. Lastly small businesses will take a hit because they do not have the excess money to adjust to the minimum wage increase. This is a simple case of the cons heavily outweighing the pros. The amount of negatives are too costly for the American workers, and the American economy. Therefore the United States simply cannot afford to raise the federal minimum wage any
If you increase the wage for the workers the money has to come from somewhere. While people will lose their jobs because of the budget cuts to accommodate the now higher wage, prices will increase as well. An increase in price will help business to keep making a profit after a federal minimum wage increase. The CATO Institute published an article titled “Four Reasons Not to Raise the Minimum Wage” the article quotes “It May Result In Higher Prices For Consumers The costs of minimum wage increases must be paid by someone • The 2012 Wilson review noted: A 2004 “review of 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.” Raising the prices of consumer goods would help keep jobs and help keep the profit of companies, but it would hurt our wallets and …show more content…
The increase in wage will do damage to the economy, in more than one way. The unskilled worker will take the biggest hit because unskilled workers will lose their jobs and it will be harder to find new ones because skilled workers are more valuable to employers. Prices of consumer goods will increase in an effort to keep jobs and profit, but will hurt consumer wallets. Lastly small businesses will take a hit because they do not have the excess money to adjust to the minimum wage increase. This is a simple case of the cons heavily outweighing the pros. The amount of negatives are too costly for the American workers, and the American economy. Therefore the United States simply cannot afford to raise the federal minimum wage any