http://www.forbes.com/sites/realspin/2013/04/17/the-record-is-clear-minimum-wage-hikes-destroy-jobs/
The Record is Clear: Minimum Wage Hikes Destroy Jobs
While being very similar to the first article, this article was a much more aggressive style, and targeted the remarks of a specific individual. Both articles come to the same exact conclusion; raising the minimum wage would not decrease the poverty rate or unemployment, in fact, it might do the opposite. A few months ago, Obama Admin. economist, Betsey Stevenson, released a statement regarding the minimum wage issue using a bunch of false facts and skewed statements. This article basically rips a part what Stevenson had to say in a well deserved manner. In fact, 85 percent of research points to a loss in jobs after an increase in minimum wage. Stevenson also manages to say that an increase in the minimum wage will get rid of poverty. This simply can not be true because 60 percent of those living in poverty do not work, therefore an increase in minimum wage will have no impact on them. For those that do earn minimum wage, a study found that majority of minimum earners do not live in poverty, so therefore they cant be brought out of poverty. Surely with an increase in minimum wage small businesses will have to cut mass amounts of employment hours or possibly entire jobs. A study finds that with these cuts, people will be pushed closer to poverty because the lack of hours will not be alleviated by the increased wage.
Another argument for the increase in minimum wage comes from the topic of inflation. Just remember that the value of the dollar can go up and down. So while Obamanists can say that with inflation minimum wage should be 10 dollars or more, an economist can realize that over the years, the value of the dollar has gone up and down, and with some mathematical calculations can deduce that if minimum wage were to be directly based of inflation, then it would be $4.12. Apparently "many" minimum wage earners are "stuck" at the "pathetic" $7.25 an hour, but a recent study showed that MOST (most and many are very very different) minimum wage earners receive an increase in 1-12 months after being hired. Even more intruiging to me is the fact that a single parent with two kids making minimum wage gets a tax credit worth around 5200 dollars, which theoretically increases his/her wage to $9.76 per hour. Interesting right? Have thoughts?
Please comment what you think about this topic below.
- David Gerhart
I agree. Raising the minimum wage would definitely result in an increase of the unemployment rate. But I tend to think that minimum wage has harmed the economy at any rate, because it sets the price of labor too high for jobs requiring little or no skill, and forcing employers to hire fewer workers as a result. And since the value of the dollar is constantly fluctuating, the free market would probably do a better job of determining what wages an unskilled worker should earn. Do you think that the unemployment rate would decrease if minimum wage were to be lowered or eliminated?
ReplyDeleteDavid,
DeleteAbsolutely. I believe the unemployment rate would certainly decrease, but I am not sure if it would alleviate the effects of poverty.
Here is a debate that I think you, and anyone else interested, should listen to given the chance:
Deletehttp://www.npr.org/2013/04/09/176272083/should-we-abolish-the-minimum-wage
I do not think it is necessary to increase the minimum wage amount. Clearly stated in the above article, tax credits are given, which in hindsight affects the minimum wage of each individual, causing it to be a higher amount. Also, if minimum wage would be increased, employers would most likely have to reduce the amount of employees that they hire and give work to. This would only put more work and stress on the employers that remain. All this leaves is a bunch of businesses with grouchy/stressed out employees and an increased number of unemployed people. In my opinion, I see few benefits as a result of increasing the minimum wage.
ReplyDeleteI also agree that we should not increase the minimum wage. I worry that as we are currently teetering on the edge of an economic recovery, slapping struggling business with extra wages and/or regulations would be a terrible choice.
ReplyDeleteI think another issue is that workers and those supporting raising the minimum wage are coming into the situation with a wrong premise. They see the government as being responsible for making sure people are living comfortably. Fortunately, that isn't the government's job. If it were, who knows what would be deemed "comfortable" for us. Instead, I think it is the individual's job to make sure he is able to make ends meet. Only the individual has the ability to change his situation. Because we have economic freedom, that worker can change jobs if he isn't happy, or make other choices regarding his economic position. I don't think this is a debate that will go away because there will always be differences in the ways that people interpret the role of government in the citizens every day life. Which is good because that's what makes a democracy.
I mean, if you support raising it correct me if I'm wrong about why you support it.
Also, EQUAL RIGHTS EQUAL RIGHTS on the gender of workers. Realized I only said he.
I think increasing the minimum wage amount is unnecessary. Increasing minimum wage only results in increasing inflation and unemployment rate. If we really want to decrease the employment rate, we need to create more jobs. The only to bring people out of poverty is to encourage them to work. People need to work in order to make money and support themselves!
ReplyDeleteIn my opinion minimum wage should not be increased because then the bar is set even higher for minimum skill jobs. What the government should worry about instead of minimum wage is lowering the amount of inflation. That way people can buy more with the money they already have earned.
ReplyDeleteI think that increasing the minimum wage would be pretty bad not only for our country but also for the businesses that are trying to pull themselves out of the recession. The Obama administration in my opinion fells like the recession is definitely over and that all businesses are back to where they were before when many are not. Raising the minimum wage would basically kick the small businesses while they're down. The current administration also should look at the way that businesses are getting around Obamacare's 30 hour law and heed the fact that if the minimum wage would be increased, the businesses would find a way around it that would ultimately hurt the workers.
ReplyDeleteI would have to agree with not increasing minimum wage. While many people begin working pedestrian jobs at minimum wage, as the argument stated, most will receive a raise in wages within a year of working. This shows that minimum wage is only a figure to start at, and not a standard for the amount of money everybody should be earning.
ReplyDeleteMost people that work for minimum wage hourly work for private business owners, or smaller scale businesses. Therefore, if minimum wage were to rise, these private business owners would theoretically have to fire a good portion of their employees. I think it mainly depends on how much of a raise it will be. I know there was talk about 2 months ago about minimum wage increasing to $9.25-$9.50. I believe this would do nothing more than increase inflation which would in turn hurt the economy even more considering small businesses are essentially the "backbone" to our economy.
ReplyDeleteI do think that to increase minimum wage is a bad idea. If wages are higher then people with minimum skills would get paid more for a minimum job which isn't necessary. Inflation should be looked at rather then to raise the minimum wage which wouldn't then be needed.
ReplyDeleteI agree with not increasing the minimum wage. It would hurt small businesses far too much. People shouldn't be trying to maintain a household at minimum wage anyway.
ReplyDeleteI would also have to agree that increasing minimum wage is not a really good idea. I think it would increase the unemployment rate and you stated, Obamanists can say that with inflation minimum wage should be 10 dollars or more, but that doesn't make any sense to me because that would make the inflation worse, maybe if the economy was better it might be okay to raise minimum wage but I would not raise it to $10 that to me seems like a lot to jump too, and like David Nelson said there are jobs out there that require little or no skill so 10 dollars is a lot of money.
ReplyDelete